What is the statute of repose in Texas for residential construction?

An outer deadline for construction defect claims, at Section 16.009 of the Texas Civil Practice and Remedies Code, running from substantial completion and barring claims regardless of when a defect was discovered. Ten years is the default. Six years applies to residential contractors on detached one- and two-family homes and townhomes who provide a written warranty meeting the statutory minimums, under House Bill 2024, effective June 9, 2023.

How do I file a warranty claim with my builder?

Follow the procedure in the warranty document, in writing, within the applicable period, to the administrator the document names, and keep copies of what was sent and when. Texas has a statutory notice and opportunity-to-repair framework under the Residential Construction Liability Act, and written records are what make it work.

What a Texas New Home Warranty Actually Covers

Q: Does a builder warranty transfer to the next owner?

Sometimes, on terms stated in the warranty document. Transferability is worth confirming both when buying and when selling, since a transferable remaining structural tier is a point in a resale's favour.

Q: What is not covered by a builder warranty?

Commonly excluded: normal wear, damage arising from the homeowner's own maintenance failures, items covered by a manufacturer's own warranty, alterations made after closing, and cosmetic items after an early cutoff. Exclusions vary by document.

Almost every DFW new construction buyer hears the phrase "one, two, ten" at some point in the sales office. One year of workmanship, two years of systems, ten years of structure. It is a real structure, it is widely used, and on a growing number of Texas homes the last number is no longer ten.

The reason is a change in Texas law that has nothing to do with generosity and everything to do with how long a builder can be sued. Understanding it tells you what to look for in the warranty document you are handed at closing, and why the document matters more than the phrase.

What is a builder warranty?

A builder warranty is a written promise from the builder about how the home will perform and for how long, and about what the builder will do if it does not. It is a separate document from the purchase agreement, it is issued or administered by a party named in that document, and its terms are set by the builder rather than by any standard form.

It is not homeowners insurance, it is not a home warranty policy you buy from a third party, and it is not a guarantee that nothing will go wrong. It is a defined promise with defined limits, deadlines, and exclusions.

What does "one, two, ten" mean?

The convention describes three tiers with different durations:

Workmanship and materials. The shortest tier. Finish-level items, and the tier under which most of what a homeowner notices in the first year falls.
Systems. A middle tier covering plumbing, electrical, and heating and air-conditioning delivery systems.
Major structural components. The longest tier, and the narrowest. Structural coverage generally addresses load-bearing elements and typically requires the defect to affect the home's structural integrity, not merely to look alarming.

That last point catches people. A visible crack is not automatically a structural claim, and structural coverage is usually the tier least likely to apply to the thing a homeowner is worried about.

Why the third number is often six, not ten

This is the part rarely explained correctly, including by sources that discuss it.

Texas has a statute of repose, at Section 16.009 of the Civil Practice and Remedies Code, that sets an outer deadline for suing over construction defects. It runs from substantial completion and it bars a claim regardless of when the defect was discovered.

House Bill 2024, effective June 9, 2023, kept the ten-year period as the default but added a shorter six-year period for residential contractors who provide a written warranty meeting statutory minimums: at least one year for workmanship and materials, at least two years for plumbing, electrical, and heating and air-conditioning delivery systems, and at least six years for major structural components. The shorter period applies to detached one- and two-family homes and townhomes. Apartments and hotels are not covered by it, and whether condominiums are is unsettled.

So the six-year structural warranty is not a reduced benefit. It is the condition a builder satisfies in exchange for a shorter liability window. A builder who offers a longer structural warranty is not necessarily more generous, and a builder who offers exactly six is not necessarily less so. What changed is the trade, not the coverage.

Read your own document rather than the convention. The number that governs your home is the one printed in the warranty you receive, and it may or may not be the number you heard in the sales office.

Warranty period, statute of limitations, statute of repose

Three different clocks, frequently conflated, and conflating them is how people miss deadlines.

The warranty period

The window during which the builder has agreed to repair a covered item under the warranty document, following the claim procedure that document requires.

The statute of limitations

The window for filing a legal claim, which varies by the type of claim brought and generally runs from when the claim accrues.

The statute of repose

The outer boundary. It runs from substantial completion, and once it expires it bars the claim even if the defect was genuinely undiscoverable until then.

A warranty period ending does not mean legal remedies end. A statute of repose expiring generally does. These are questions for a Texas attorney, not for an agent and not for a warranty administrator.

What the RCLA does before any of that

The Residential Construction Liability Act, Chapter 27 of the Texas Property Code, governs how construction defect claims proceed. It sets out a required notice and opportunity-to-repair process rather than allowing a homeowner to go straight to court, and it was amended by House Bill 2022, effective September 1, 2023.

The practical consequence for a homeowner is that documentation and written notice are not optional formalities. The process is built around them, and a claim advanced without them is weaker for reasons that have nothing to do with whether the defect is real.

What buyers get wrong

Assuming the builder will remind you

Warranty tiers expire on their own schedule. No one is obliged to prompt you.

Reporting verbally

Most warranty documents specify a submission method. A conversation with a superintendent is generally not a claim.

Treating the walk-through list as the warranty

The pre-closing punch list and the warranty are separate mechanisms with separate procedures.

Not knowing who administers it

Some builders administer their own warranties. Others use a third-party administrator named in the document, with its own forms and deadlines. Find out which before you need to know.

Assuming maintenance failures are covered

Warranties commonly exclude damage arising from the homeowner's own maintenance, and on North Texas clay soil, foundation moisture management is the maintenance item most often at issue.

Questions buyers ask

What does a builder warranty cover in Texas?

Typically three tiers: workmanship and materials for the shortest period, plumbing, electrical and heating and air-conditioning delivery systems for a middle period, and major structural components for the longest. Terms, exclusions, and claim procedures are set by the builder's own document rather than by a standard form.

How long is a new home warranty in Texas?

It depends on the document. The widely used structure is one year, two years, and either six or ten years for structure. Texas law since June 2023 gives builders a reason to offer exactly six for major structural components, so a six-year structural tier is now common and is not a sign of a weaker builder.

Is a 1-2-6 warranty worse than a 1-2-10 warranty?

Not necessarily. A written warranty meeting the statutory minimums, which include six years for major structural components, shortens the builder's statute of repose from ten years to six. The six-year tier is the condition for that, so it reflects a legal trade rather than a lesser product. Compare the actual coverage terms and exclusions, not the headline numbers.

What is the statute of repose in Texas?

An outer deadline for construction defect claims, at Section 16.009 of the Civil Practice and Remedies Code, running from substantial completion. Ten years is the default. Six years applies to residential contractors on detached one- and two-family homes and townhomes who provide a written warranty meeting the statutory minimums.

Does a builder warranty transfer to the next owner?

Sometimes, and on terms stated in the document. Transferability is worth confirming both when you buy and when you sell, since a transferable remaining structural tier is a point in a resale's favour.

How do I file a warranty claim?

Follow the procedure in the warranty document, in writing, within the applicable period, to the administrator the document names. Keep copies of what you sent and when. Texas has a statutory notice and opportunity-to-repair framework, and written records are what make it work.

What is not covered by a builder warranty?

Commonly excluded: normal wear, damage from the homeowner's own maintenance failures, items covered by a manufacturer's own warranty, alterations made after closing, and cosmetic items after an early cutoff. Exclusions vary by document and are worth reading before you need them.

Do I need an inspection before the first warranty tier expires?

Many homeowners arrange one shortly before the workmanship tier ends, on the reasoning that a full cycle of North Texas weather has passed and items not visible at closing may now be. Timing matters, because a claim has to be submitted and processed within the period rather than merely discovered inside it. The stage-by-stage detail is in the DFW new construction inspection checklist.

Can my agent interpret my warranty document?

An agent can explain what the tiers are, what questions to ask, and who administers the document. Interpreting the language of a specific warranty, or advising on a defect claim, is work for a Texas attorney.

About the author

Nitin Gupta, Broker Associate, Competitive Edge Realty LLC. CRS, GRI, CLHMS, ALHS, PSA, ABR, SRS, SRES, e-PRO, MRP, TRLS, TRPM. TREC License #0668540. More than 480 closed transactions and more than 300 new construction closings across 50 or more DFW builders. Named D Magazine Best REALTOR in 2020, 2023, and 2024. Service in English, Hindi, Punjabi, Urdu, and Gujarati. Designations held and what each one covers.

Ask about the warranty before you sign, not after you close

The warranty document is part of the package handed over at signing, and it is the part buyers read last. If you are choosing between builders or communities, get in touch or call 469-269-6541.

General information about builder warranties and the Texas statutes that interact with them. Not legal advice, and not an interpretation of any specific warranty or contract. Statutory provisions are summarised and may have been amended. Consult a licensed Texas attorney about a specific document or a specific defect.