Texas lawmakers are currently considering a bill that would not allow a binding arbitration clause to be included in contracts between Texas homebuilders and new home buyers. HB 3736, “Relating to the sale of newly constructed homes and requiring the Texas Real Estate Commission to adopt contract forms to be used in the sale of a newly constructed home,” was filed by Representative Lon Burnum of Fort Worth. The proposed law would reportedly remove a binding arbitration clause from a currently approved Texas Real Estate Commission contract form. The bill was referred to the House Business and Industry Committee on March 21st.
According to one report, Bexar County Commissioners recently voted to back the initiative and the City of San Antonio is currently reviewing the proposed measure. Scott Norman, Executive Director of the Texas Association of Builders, has stated the organization plans to strongly oppose the measure. Other groups, such as the Greater San Antonio Builders Association, will reportedly work to discourage cities and other localities from supporting the legislation.
What do you think about the proposal?
Stay tuned to Disputing for more information about this and other bills that relate to arbitration in Texas.