All Texas property owners need to know about the Deceptive Trade Practices Act, otherwise known as the DTPA. This is an act put in place to protect those who have been the victim of illegal business practices. Not only does this act provide certain protections and legal resources, but it also allows you to recover damages.
So, if you own property in Texas and believe your situation falls under the Texas Deceptive Trade Practices Act, you need to get in touch with a DTPA lawyer. A Texas DTPA attorney can help you understand what this act covers and how it applies to you.
Keep reading to find out what the Deceptive Trade Practices Act in Texas includes and scenarios where it may apply.
What Is the Texas Deceptive Trade Practices Act?
Before we discuss how the DTPA applies to property owners, what exactly is the Texas Deceptive Trade Practices Act? The DTPA is specifically designed to protect consumers from dishonest or illegal business practices, including things like false advertising, poor workmanship, and misleading statements.
One of the benefits of this act is that it allows consumers to sue any individual or entity who has violated the DTPA. So, you could file a lawsuit against an individual, corporation, or a partnership.
But before you move forward with a lawsuit, it’s strongly recommended that you work with a DTPA lawyer in Texas who can represent you. A lawyer will have a better understanding of what the DTPA includes and how it applies to property owners.
Who Qualifies as a “Consumer” Under the DTPA?
The word consumer can make it seem as though the DTPA only protects specific individuals. However, this act defines a consumer as any individual, corporation, partnership, or governmental entity that is acquiring goods or services through a purchase or lease.
Keep in mind that a business that has $25 million or more in assets no longer fits the definition of being a consumer. This also applies to businesses controlled or owned by an entity or corporation that has $25 million or more in assets.
What Types of Conduct Can Violate the DTPA?
The good news for Texas property owners is that the DTPA covers many illegal or deceptive practices, providing you with a legal path forward. Here are some examples of the types of conduct that would directly violate the DTPA:
- False or misleading statements about goods or services.
- Breach of an implied or express warranty.
- Willfully misrepresenting an agreement.
- Unconscionable acts or courses of action.
- Using hidden fees or bait and switch pricing.
- Selling damaged or used goods as new or like new.
- Using deceptive billing practices or unauthorized charges.
- High-pressure sales tactics that coerce or mislead the consumer.
Also, keep in mind that for any of these circumstances to qualify for the protections under the DTPA, they must meet certain criteria. For example, you must establish that you qualify as a consumer, that the defendant actively engaged in misleading, false, or deceptive acts, and that these acts directly caused your damages.
How Can the DTPA Apply to Texas Property Owners?
It isn’t uncommon for real estate owners in Texas to fall victim to deceptive business practices. So, here are some specific examples of DTPA violations that apply to Texas property owners:
- Misrepresentation during real estate transactions.
- Misrepresentation from contractors regarding work that was supposed to be performed but wasn’t.
- Contractors using substandard or unauthorized materials.
- False or misleading statements regarding property condition, real estate services, or property repairs.
You should work with an attorney to review other Texas construction laws that you may be able to apply alongside a DTPA claim. You also need to be prepared to provide extensive evidence with your claim to establish how the DTPA applies to your situation.
Why Property Owners Need to Provide a Written Notice
One thing property owners need to keep in mind if they wish to file a Texas DTPA claim is that they cannot do this immediately. The DTPA requires you to provide a written notice of your problem to the defendant at least 60 days before you file your claim.
By providing a written notice, you are giving the defendant the chance to remedy the dispute without having to go to court. Hand in many cases this is preferable since it saves time and money for everyone involved.
Here is everything your DTPA written notice letter should include:
- The details of why you are filing the claim.
- What you believe the defendant did or said that falls under the DTPA.
- The sections of the Texas Business and Commerce Act that apply to the transaction.
- The amount of economic damages you are pursuing.
- The non-economic damages and attorney fees you are pursuing, if applicable.
- A statement clarifying that your letter serves as a prerequisite notice before you file a lawsuit if the claim is not resolved within 60 days.
FAQs
Does every misleading statement about Texas property violate the DTPA?
Not necessarily. This depends on what is said or done, the nature of the transaction, the claimant status, and whether or not the defendant’s actions resulted in direct damages.
Can the DTPA apply to real estate transactions in Texas?
Possibly. The DTPA can apply to property or real estate transactions if the transaction falls under one of the DTPA’s violations and the other requirements have been satisfied.
Can a contractor be sued under the Texas DTPA?
Although you may be able to use a DTPA claim if you have been the victim of misrepresentation or fraud from a contractor, this isn’t always as straightforward. Contractor disputes are often governed by other Texas laws and contractual requirements, so you need to review these as well.
Can a business bring a DTPA claim in Texas?
Yes. Most Texas businesses can file a DTPA claim as long as they are under the asset limit.
Get the Help of a Texas Business Attorney Today
If you have been the victim of an illegal practice as a property owner in Texas, you may have access to certain protections under the Texas consumer protection law. And if that is the case, you should consult with a Texas real estate lawyer to better understand what your options are and how you should move forward. Contact us today at Sewell Sewell Beard LLC by calling us directly at 972-777-5390 to discuss your situation with one of our Texas property attorneys.