Construction Panel Lacks Power; Misrepresents "Licensing"

Editors:

Re: Dec. 19 editorial "Construction panel lacks effective power."

The editorial states that the Sunset Advisory Commission "voted to give the construction commission greater authority to revoke or suspend a builder's license." The term "license" is a misnomer because Texas, unlike 28 other states, does not require homebuilders to be licensed.

Unfortunately, Texas only requires builders to be "registered" with the Texas Residential Construction Commission. Consequently, unqualified and unscrupulous homebuilders frequently enter the profession because the TRCC requires only that a registered builder to be 18 years old, a "trustworthy" Texas resident and legally able to work in the United States.

Texans who buy a used car have far more consumer protections than Texans who buy a new home. As recommended by the Sunset Commission staff, the TRCC should be abolished to protect the public. In addition, all construction trades should be licensed and held financially and legally accountable to Texas homeowners.

Tom Archer
President, Homeowners of Texas Inc.
TomArcher@HomeownersOfTexas.org
Austin

READER COMMENTS:

Wayne Caswell wrote:
Tom Archer highlights some of the dangers of buying a new home in Texas under current rules. Until these rules change and builders are held accountable to homeowners, it will be safer to buy a USED home. Here’s why:
(1) Besides having established landscaping and window treatments, a used home’s foundation has likely already settled, so cracks and defects are more apparent than with a new home.
(2) Real Estate inspectors are licensed; new home inspectors are not.
(3) State-approved real estate contracts define legal rights for all parties in the sale of existing homes; builder contracts generally require binding arbitration and block access to courts.
(4) Individuals are required to disclose known defects when selling their home; builders aren’t.
(5) And when buying a used home, like a used car, you can buy an insurance-backed warranty; when buying a new home, the builder often provides a warranty with illusory coverage terms.

Rather than add to the glut of new homes and contribute to our economic mess, why not buy used? If we did that, maybe builders would quit behaving badly.

Lurch wrote:
Mr. Archer, Before the TRCC, you already had all the protection from unscrupulous home builders that you could possibly use. . .it is the Court system. The TRCC act actually made it much tougher for you to access the court system. Most members of the board are home builders. We don't need no more stinkin' bureaucracies.

J.Howard wrote:
Tom Archer is promoting expensive regulation of home construction that provides employment for more bureaucrats and labor unions. The home buyer who isn’t comfortable with the reputation of his builder should find another builder. Compare the cost of construction in New York City with the cost of construction in Marble Falls. I’ll take the gamble of buying an unregulated home in Marble Falls.

BFranklin wrote:
Tom Archer is right - One of the causes of the current economic collapse is substandard homes which were overvalued, overmortgaged and oversold by unscrupulous builders, the same builders who are now seeking a bailout from us.

Residential Construction Commission

Re: Dec. 19 editorial “Construction panel lacks effective power”

Both the Sunset Commission staff and a prior state comptroller have recommended that the Texas Residential Construction Commission be abolished for good reasons: The TRCC is run by the homebuilding industry, ineffective and a bureaucratic nightmare for consumers.

Even under the proposal to delay homeowner action for 3 ½ months, the TRCC cannot compel the builders to fix construction defects even after the homeowner obtains an attorney, an engineer and other experts to counter the builder’s attorney, engineer and inspector and waits for the 105 days. The result is not final and only costs the homeowner needless time, money and delay.

Abolish the TRCC as recommended. Make the TRCC process voluntary, license builders and require financial accountability.

Lou McCreary
Austin

Construction quality control

Re: Dec. 19 editorial "Construction panel lacks effective power."

You failed to mention the glaring deficiency of the Texas Residential Construction Commission, and that is its lack of organization and management.

It has no representatives (actual people) out in our counties or districts. Its purpose seems to be delusive. [HOT: This is a good point and one we've not heard until now. It begs the question, "How effective can a Dispute Resolution agency be if it only has offices in Austin?"]

The TRCC implies that it protects against lawsuits. It assures homeowners and construction contractors that it is providing quality control for all parties. But it has no hands-on control.

The TRCC needs to disband and be reorganized by someone who understands what it takes to provide assistance and guidance at the job site and will provide quality control through plans and specifications, codes and the manifestation of a complete functional system (i.e., city building inspectors).

Bob Hunter
Fredericksburg