Texas home improvement contracts, for a bathroom remodel
Texas law has a few specific rules for contracts on the house you live in, and for sales signed at your kitchen table. They take two minutes to check and they matter most when something goes wrong.
On this page
The homestead warning
Texas Property Code Section 41.007 says a contract to improve a homestead must carry this warning in at least 10-point bold type: "IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW."
The warning exists because a contractor who is not paid can, in some cases, place a lien on the property. A contract without it is, under the same section, a deceptive trade practice. If you don't see it, ask why.
Arbitration clauses
Under the same section, a clause that sends disputes to binding arbitration must also be in at least 10-point bold type, or it cannot be enforced against the owner. Read the clause before you sign: it decides where a dispute is heard and who pays for it.
The 3-day right to cancel
Under Texas Business and Commerce Code Section 601.051, you may cancel until midnight of the third business day after you sign. Section 601.002 applies that right to purchases over $25 made through a personal solicitation away from the seller's place of business. That right covers a sale made at your kitchen table. It does not cover a sale negotiated at the seller's showroom or other fixed place of business (Section 601.002).
In practice: if a salesperson came to your home and you signed there, you have until midnight of the third business day to cancel in writing. Keep a copy of the cancellation and send it in a way you can prove.
What else a good contract includes
- The itemized scope and price, including allowances for tile and fixtures
- Who pulls which permits
- A payment schedule tied to finished stages, with the final payment after the final inspection
- How hidden damage and change orders are priced and approved
- Start date and an expected schedule
- The labor warranty, in writing
- Names and license numbers of the plumber and electrician
Questions San Antonio homeowners ask
Does Texas require a written contract for a bathroom remodel?
For work on a homestead, Texas law requires the contract to include the homestead warning, which only works in writing. Get every remodel in writing either way.
Can I cancel after the 3 days?
Not under that statute. You may still have rights under the contract itself, such as a termination clause. Read it before you sign.
What is a mechanic's lien?
A claim against your property by a contractor, subcontractor or supplier who was not paid. Ask for lien releases from the contractor, and from major suppliers, as you pay.