How Right to Repair Laws Shield Residential Contractors
The Cromeens Law Firm
April 9, 2026
Facing a sudden lawsuit from a dissatisfied homeowner is a significant concern for any residential contractor, but not all defect claims have to end in a lawsuit. Texas and dozens of other states have enacted specific legislation designed to protect construction professionals from immediate, unannounced litigation. These statutes, often referred to as “Right to Repair” or “Notice and Opportunity to Cure” laws, provide a mandatory procedural framework that homeowners must follow before they can initiate a lawsuit over alleged construction defects.
By requiring homeowners to notify the contractor and provide an opportunity to inspect and resolve the issue, these laws serve as a powerful shield for your business. This guide explains how these statutory protections operate, with a detailed focus on the Texas Residential Construction Liability Act (RCLA), what deadlines you must hit to keep your legal protections intact, and how similar statutes operate in other states.
Key Takeaways:
In Texas, the primary statutory protection for residential builders and remodelers is the Residential Construction Liability Act, located in Chapter 27 of the Texas Property Code. The RCLA was established to encourage the resolution of construction disputes outside of the courtroom. It limits a homeowner’s ability to sue their contractor outright by mandating a strict pre-suit notification and settlement process.
The RCLA applies to claims involving alleged defects in the construction or repair of a new or existing residence. That includes foundation problems, water intrusion, framing issues, HVAC failures, and nearly any other deficiency a homeowner might attribute to your work.
To benefit from the RCLA’s protections, both the homeowner and the contractor must follow a specific sequence of steps within defined deadlines. The process typically unfolds through the following steps:
| Step | Who Acts | Deadline | What Happens |
| 1: Demand Letter | Homeowner | 60 days before | The homeowner sends written notice to the contractor via certified mail and return receipt requested. The letter describes the alleged construction defects in reasonable detail, including supporting evidence like photos or expert reports. |
| 2: Inspection Request | Contractor | Within 35 days of notice | The contractor requests access to inspect the property. Up to three inspections are allowed to evaluate the defect, its cause, and the repair scope. |
| 3: Settlement Offer | Contractor | Within 45 days of notice | Written offer to repair the defect, pay for third-party repairs, or provide a monetary settlement equivalent to repair costs. |
| 4: Homeowner Response | Homeowner | Within 25 days of offer | The homeowner accepts or rejects the offer in writing. A rejection must state specific reasons why the offer is unreasonable. |
| 5: Supplemental Offer | Contractor | Within 10 days of rejection | If the homeowner rejects the first offer, the contractor may submit a revised supplemental settlement offer before litigation proceeds. |
The RCLA only protects you if you actively use it. A common and costly mistake residential contractors make is ignoring a demand letter.
If a contractor fails to respond to the homeowner’s notice or neglects to make a reasonable settlement offer within the 45-day window, they forfeit the precise protections the RCLA provides. Without a timely offer, the statutory limitations on the homeowner’s damages no longer apply, leaving the contractor exposed to maximum liability in a subsequent lawsuit. Engaging with the process immediately upon receiving a notice is a strict necessity for preserving your legal rights.
The moment you receive a defect notice, that 45-day clock is already running. Contact a construction attorney immediately so your response is substantive, legally sound, and delivered on time.
The design of the RCLA inherently encourages fair settlements by penalizing parties who act unreasonably. This provides two distinct layers of financial protection for contractors.
If a contractor extends a fair and reasonable settlement offer that the homeowner ultimately rejects, the homeowner assumes a significant legal risk. Should the dispute proceed to trial or arbitration, and the court determines the contractor’s offer was indeed reasonable, the homeowner’s financial recovery is strictly capped. They will not be permitted to recover an amount exceeding the fair market value of the contractor’s final offer. Furthermore, the homeowner’s ability to recover attorney’s fees is limited to only those costs incurred before the offer was rejected. This structure rewards contractors who engage in good faith and penalizes homeowners who litigate unnecessarily.
Another critical protection for contractors involves homeowners who attempt to bypass the statutory process. If a homeowner decides to fix the alleged defects themselves or hires a third party to perform the repairs without giving the original contractor the required notice and opportunity to inspect or cure, the homeowner severely limits their own legal standing. Because the contractor was denied the statutory right to evaluate the damage and offer a cost-effective solution, the contractor is generally not liable for the costs of those unauthorized repairs. The homeowner’s decision to bypass the process cuts off their right to recover those costs from you.
Texas is not alone in providing a legislative shield for residential contractors. Most states have enacted some form of right to repair legislation because courts and legislatures recognized the same problem: homeowners were filing expensive lawsuits over defects that could have been resolved with a phone call and a repair crew.
While the specific timelines, definitions, and procedures vary significantly by jurisdiction, the following states currently have some form of “Right to Repair” or “Notice and Opportunity to Cure” legislation in place for construction defects:
If you operate in any of these states, it is crucial to familiarize yourself with the exact statutory requirements applicable to your region, as strict compliance with your specific state’s law is necessary to secure your defenses. If you operate in multiple states, do not assume one state’s rules apply across the board.
Navigating construction law requires expertise, precision, and care. While Right to Repair statutes provide an excellent mechanism to shield your business from unnecessary litigation, navigating the strict deadlines and formal documentation requires professional diligence.
At our firm, we believe that we are partners with our clients. We build relationships founded on trust and recognize that you have plenty to deal with when managing your construction projects. By understanding your rights and responding appropriately to homeowner complaints, you can protect your financial interests and the reputation of your business.
Consulting with an experienced construction attorney immediately upon receiving a defect notice ensures your response is legally sound, timely, and strategically positioned to minimize your liability.
Ignoring a demand letter is one of the most dangerous actions a contractor can take. By failing to respond and participate in the statutory inspection and offer process, the contractor waives the damage caps and protections provided by the statute. The homeowner can then proceed directly to filing a lawsuit without the restrictions that would otherwise limit their financial recovery.
Under the Texas RCLA, a contractor has 45 days from the date the homeowner’s written notice was received to submit a written settlement offer. This deadline runs from the original notice, not from the date of inspection. Missing this window forfeits the statutory protections entirely, which is why it is critical to involve a construction attorney from the day the demand letter arrives.
In states with a Right to Repair statute like Texas, a homeowner is legally required to send the pre-suit notice before initiating litigation. If a homeowner files a lawsuit without providing this mandatory notice, the contractor’s legal counsel can file a motion to abate (pause) the lawsuit. The court will halt the legal proceedings until the homeowner complies with the notification and inspection requirements.
A reasonable offer generally covers the necessary scope of work to correctly repair the verified defect or provides a monetary sum equivalent to the fair market cost of those repairs. If the matter goes to trial, the judge or arbitration tribunal will act as the trier of fact to determine if the offer was reasonable based on the evidence, engineering reports, and standard industry practices.
No. The Texas RCLA applies specifically to residential construction, which includes new home construction and remodeling work on existing residences. Commercial projects, multifamily developments above a certain threshold, and other non-residential construction are governed by different legal frameworks. If you work across both residential and commercial projects, your legal obligations and defenses in a defect dispute will differ depending on the type of project involved.
Karalynn Cromeens is the Owner and Managing Partner of The Cromeens Law Firm, PLLC, with over 17 years of experience in construction, real estate, and business law. A published author and passionate advocate for contractors, she has dedicated her career to protecting the businesses her clients have built. Karalynn is on a mission to educate subcontractors on their legal rights, which inspired her books Quit Getting Screwed and Quit Getting Stiffed, as well as her podcast and The Subcontractor Institute.
