Texas Property Code - Section 28.003. Exception For Good Faith Dispute; Withholding
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§ 28.003. EXCEPTION FOR GOOD FAITH DISPUTE;
WITHHOLDING. (a) If a good faith dispute exists concerning the
amount owed for a payment requested or required by this chapter
under a contract for construction of or improvements to a detached
single-family residence, duplex, triplex, or quadruplex, the
owner, contractor, or subcontractor that is disputing its
obligation to pay or the amount of payment may withhold from the
payment owed not more than 110 percent of the difference between the
amount the obligee claims is due and the amount the obligor claims
is due. A good faith dispute includes a dispute regarding whether
the work was performed in a proper manner.
(b) If a good faith dispute exists concerning the amount
owed for a payment requested or required by this chapter under a
contract for construction of or improvements to real property,
excluding a detached single-family residence, duplex, triplex, or
quadruplex, the owner, contractor, or subcontractor that is
disputing its obligation to pay or the amount of payment may
withhold from the payment owed not more than 100 percent of the
difference between the amount the obligee claims is due and the
amount the obligor claims is due. A good faith dispute includes a
dispute regarding whether the work was performed in a proper
manner.
Added by Acts 1993, 73rd Leg., ch. 479, § 1, eff. Sept. 1, 1993.
Amended by Acts 1999, 76th Leg., ch. 805, § 2, eff. Sept. 1,
1999.
Section: 27.0041 27.0042 27.005 27.006 27.007 28.001 28.002 28.003 28.004 28.005 28.006 28.007 28.008 28.009 28.010
Last modified: August 11, 2007
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