Navigating the Texas RCLA: Tips for Homeowners and Builders

Understanding the RCLA

Enacted in 2003 as part of the Texas Property Code, the Texas Residential Construction Liability Act (the “RCLA”) establishes a formal pre-lawsuit process for dealing with residential construction defects. Whether you're a homeowner or a contractor, knowing how this process works is crucial to resolving disputes effectively and legally.

 For Homeowners: Take These Steps Before Filing Suit

1 - Send a demand letter at least 60 days before filing suit

This letter must detail each defect with reasonable specificity and include supporting evidence like photos, videos, or inspection reports. See Tex. Prop. Code § 27.004. It must be sent via certified mail with return receipt to document delivery. See id.

2 - Describe defects clearly

Provide precise descriptions to ensure the contractor understands the issue. You also want to identify the damage caused from the defect. This may help to get the contractor’s insurance involved. For example, a contractor improperly installed a window, leaving a gap in the frame and exposing the interior of the house – the defect – and that defective work, following a rainstorm, led to water intrusion of the floors and walls – the damage. 

3 - Attach supporting evidence

Strengthen your claims with tangible proof. This may include photographs, expert or inspection reports, quotes for the repairs, and videos. These documents help to make your demand more credible. Often, the description is less important than the supporting evidence, which you can use to further describe the defect. For example, if describing a defective flooring installation, you might describe the flooring as warping and coming up following installation as further shown in the photos attached to this letter. 

4 - Understand applicable deadlines

Statutory Deadlines. The contractor has 35 days after receiving the notice to make a written request to inspect the property. See Tex. Prop. Code § 27.004. The statute indicates that the contractor may conduct up to three inspections during the 35-day inspection period. See id. The contractor has 60 days after receiving the notice to make a written offer of settlement. See Tex. Prop. Code § 27.004(b). The claimant (or property owner) then has 25 days from receipt of the offer to advise the contractor in writing and in reasonable detail of the reasons why the claimant considers the offer unreasonable. See id. The contractor then has 10 days from the claimant’s notice to make a supplemental written offer. See id. If the claimant fails to provide the notice, a reasonable opportunity to inspect, or the other procedures outlined above, the contractor can have the lawsuit or arbitration abated. The failure to follow the RCLA’s procedures can also result in limits on the claimant’s damages. See Tex. Prop. Code § 27.004(e). 

Statute of Limitations. You typically have four years to file claims for breach of contract or warranty and two years for negligence or product liability. Exceptions may apply if the defect is discovered later than construction completion (via the "discovery rule").

5 - Know what you can recover

Through the RCLA, homeowners may be eligible for economic damages such as repair costs, replacement of damaged goods, temporary housing during repairs, consulting/engineering fees, and reasonable and necessary attorney's fees. All damages sought must be reasonable and well documented. See Tex. Prop. Code § 27.004(g). 

For Builders & Contractors: Key Actions & Defenses

1 - Take demand letters seriously—respond promptly

Even if you believe the complaint is unfounded, ignoring it can jeopardize your defense. Immediate action and documentation are crucial.

2 - Request evidence—it’s your right

After receiving a demand letter, you may request that the homeowner provide evidence (e.g., photos, videos, reports) that substantiate their claim. The RCLA requires the homeowner provide the contractor with any evidence that depicts the nature and cause of the defect and the nature and extent of repairs necessary to remedy the defect, if the evidence would be discoverable under Rule 192 of the Texas Rules of Civil Procedure. See Tex. Prop. Code § 27.004(a).

3 - Arrange for Inspections 

You’re allowed up to three inspections within 35 days of receiving the notice—this helps assess the defects independently and supports your response strategy. See id.

4 - Make a written settlement offer within 60 days

The contractor may make a written settlement offer to the homeowner not later than the 60th day after the date the contractor received the RCLA notice. This can include repair, replacement, or compensation. If rejected by the homeowner within 25 days of their receipt, the contractor may respond with a supplemental offer within 10 days. Note, a homeowner who rejects a contractor’s final reasonable offer may be limited to recovering the fair market value of that offer, among other limits on their damages. See Tex. Prop. Code § 27.004(e). For this reason, it can be helpful for a contractor to make a good faith, reasonable offer to resolve the dispute prior to litigation. 

5 - Know what excuses can protect you

The RCLA protects contractors from liability for defects caused by others (negligence of someone else), homeowner maintenance failures, normal wear-and-tear, or legitimate government misinformation—among other defenses. See Tex. Prop. Code § 27.003(a).

6 - Use the RCLA’s broader legal protections

Per Chapter 27 of the Texas Property Code, the RCLA allows for robust defenses and may preempt other overlapping laws like the Deceptive Trade Practices Act when conflicts occur. See Tex. Prop. Code § 27.002.

Final Thoughts

• For Homeowners: The demand letter under the RCLA is your pathway to potential resolution without immediately resorting to litigation. Detailed descriptions, solid evidence, and legal timelines are your tools. 

• For Builders & Contractors: Prompt, structured, and documented responses—including inspections and settlement offers—are your best defense against costly legal escalation.

The RCLA is built to encourage good-faith resolution, understand your role, act within the timeline, and consult with the experienced construction lawyers of Allen Bryson Lamar, PLLC, if you need help with a residential defect claim or defense.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.