TITLE: Relating to requiring a home inspection report as a condition of a residential service contract.

SUMMARY: Relating to requiring a home inspection report as a condition of a residential service contract.

FULL TEXT:
AN ACT relating to requiring a home inspection report as a condition of a residential service contract. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter G, Chapter 1303, Occupations Code, is amended by adding Section 1303.305 to read as follows: Sec. 1303.305. HOME INSPECTION REPORT REQUIREMENT AND CERTAIN PAYMENT PROHIBITED. (a) A residential service company may not require a homeowner, lessor, or renter to provide a home inspection report to the company after a residential service contract is entered into by the homeowner, lessor, or renter. (b) If a residential service company requires a home inspection report before a residential service contract is entered into and declines the contract, the company may not collect any payment from the homeowner, lessor, or renter. (c) A residential service company that requires a home inspection report may not deny a claim on any structural component, appliance, or system that is addressed in the home inspection report and included in the residential service contract unless the company gives the homeowner, lessor, or renter express notice of exclusion of the component, appliance, or system before the contract is entered into by the homeowner, lessor, or renter. SECTION 2. The change in law made by this Act applies only to a contract entered into or renewed on or after the effective date of this Act. A contract entered into or renewed before that date is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.