A builder in Houston sells a newly constructed home to a buyer with an express warranty covering structural defects for 10 years. After three years, the foundation develops cracks. The builder refuses to honor the warranty. The buyer files a DTPA claim. Under which DTPA provision can the buyer proceed?
Correct Answer
A) §17.50(a)(2) — breach of an express warranty creates a DTPA cause of action
Under Texas Business & Commerce Code §17.50(a)(2), a consumer may maintain a DTPA action when the defendant breaches an express or implied warranty. The builder's 10-year structural warranty is an express warranty, and the refusal to honor it creates a DTPA cause of action independent of a common law breach of warranty claim.
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Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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Previous Question
A Texas real estate license holder provides a buyer with a comparative market analysis (CMA) that inflates comparable sale prices to persuade the buyer to offer above market value on a listing. The buyer later learns the comps were inaccurate and files a DTPA claim. The license holder asserts a defense under the DTPA. Which defense is MOST likely to succeed?
Next Question
The Texas DTPA laundry list under §17.46(b) prohibits specific deceptive trade practices. Which of the following is NOT included in the DTPA laundry list?