Texas Disclosure Statement Required for a Residential Construction Contract
About this form
The Disclosure Statement Required for a Residential Construction Contract is a mandatory document under the Texas Property Code. It outlines essential rights and responsibilities for homeowners entering into a residential construction contract. This form is designed to protect homeowners by ensuring they are informed about various aspects of the construction process, differentiating it from other construction-related forms that may not provide such detailed legal guidance.
Form components explained
- An overview of homeowner rights and responsibilities during construction.
- Requirements related to contractor payments and claims from subcontractors.
- A list of mandatory contents in the written contract with the contractor.
- Instructions on obtaining lien releases and bills-paid affidavits.
- Guidance on residential project monitoring and inspections.
When to use this form
This form should be used when entering into a contract for constructing a new home or remodeling an existing residential property in Texas. It serves to ensure that homeowners are fully aware of their rights and obligations, particularly regarding financial transactions and the contractorâs responsibilities.
Intended users of this form
- Homeowners planning to build a new home or remodel an existing one.
- Individuals hiring a contractor for residential construction projects.
- Anyone seeking to understand their rights and obligations under Texas construction law.
Instructions for completing this form
- Review the rights and responsibilities outlined in the disclosure statement.
- Ensure the form is included in your written contract with the contractor.
- Obtain a written agreement that specifies the scope of work, cost, and payment methods.
- Request and verify references for your contractor before signing the agreement.
- Consult an attorney for clarification on any complexities or claims related to the contract.
Does this form need to be notarized?
This form does not typically require notarization unless specified by local law. However, it is advisable to consult with a legal professional regarding specific scenarios where notarization may enhance legal protections.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Not reading the entire disclosure statement before signing.
- Failing to verify contractor references and credentials.
- Not obtaining written agreements detailing the scope and costs of work.
- Ignoring notices of claims from subcontractors or suppliers.
- Releasing funds without securing a lien release or bill-paid affidavit.
Benefits of using this form online
- Immediate access to legally vetted templates drafted by licensed attorneys.
- Convenient download options that allow personalization to meet individual needs.
- Easy-to-follow instructions to guide users through completion.
- Accessible anytime, allowing for completion at the userâs pace.
Legal use & context
- This disclosure statement is required by Texas law to ensure informed consent in residential construction.
- Failure to adhere to the stipulated rights and responsibilities can lead to potential liability for homeowners.
- Homeowners can protect themselves from liens imposed by subcontractors by following the guidelines in this document.
Quick recap
- The Disclosure Statement is essential for educating homeowners on their rights and risks before entering a construction contract.
- Proper documentation and understanding of the contract are crucial to protect against financial liabilities.
- Consulting an attorney for legal advice can significantly enhance understanding and compliance with Texas construction laws.
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FAQ
While you don't need a license to operate as a general contractor, you will need a license if you plan to undertake certain jobs. In Texas, electricians, plumbers, HVAC technicians, fire sprinkler installers, and well drilling/pump installation specialists must attain proper licenses.
Direct project overhead costs are often referred to as general conditions and include costs incurred at the jobsite for supervision and administration of the overall contract but not ascribable to any particular onsite construction activity.
The banks in Texas do require you to have a general contractor on your home. Your GC is not required to have a license though. We are currently using the Owner Builder Network(.com). They provide your construction financing and you have full control of the project.
Your general contractor should provide proof of licensing, bonding and insurance before a project starts, but it's better to have it in hand before you sign any contracts. It's important that contractors carry any licensing and/or certification required for the specific trade or skill they practice.
Identifying/Contact Information. Title and Description of the Project. Projected Timeline and Completion Date. Cost Estimate and Payment Schedule. Stop Work Clause and Stop Payment Clause. Act of God Clause. Change Order Agreement. Warranty.
Standard construction contracts should have the following information and clauses: Name of contractor and contact information. Include the contractor's license number along with phone number, email address, and company address. Name of homeowner and contact information.
A license is not required to operate as a handyman in Texas, but specific jobs are an exception. Handyman contract jobs such as Plumbing and HVAC may need licensing, while others like simple repairs and aesthetic improvements may not.
General Requirements are used as the clearinghouse for items that do not apply directly to construction, the cost of which are customarily spread out over the entire project. These costs are also referred to as project overhead. For estimating purposes, either term is acceptable.
The five requirements for creating a valid contract are an offer, acceptance, consideration, competency and legal intent.
