CS/HB 295 - Construction Defects Summary

• Real estate licensees must disclose to buyers whether a seller or association has made a construction defect claim under chapter 558, the outcome of the claim, and any repairs made.

• Claimants must submit a claim to the warranty provider before serving a notice of claim; false statements in the notice constitute perjury.

• Notice of claim must describe the defect in specific detail, include photographs if visible, identify the specific location, affirm personal knowledge, and acknowledge awareness of disclosure obligations and perjury penalties.

• Jury verdicts and final judgments in construction defect actions must itemize damages separately as repair/replacement costs, collateral damage repairs, and other recoverable damages.

• Sellers must disclose construction defect claims to buyers before closing, including the defect nature, claim outcome, and repair status; claimants must notify mortgagees/assignees within 90 days of settlement or judgment and update within 30 days of repair completion.

• Effective date: July 1, 2020