Service Contract Providers

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Program News and Updates

New Laws Affecting Service Contract Providers

September 1, 2023

Beginning September 1, 2023, the following changes to the Service Contract Provider (SCP) program will go into effect as a result of recently-passed legislation (HB 4316).

Providers who maintain a financial security using a funded reserve account, the formula for determining the required balance changed. Form SCP 012 will be updated to reflect the new formula.
Registrants may designate certain application materials as confidential for proprietary or competitive purposes. Instructions will be listed on applications and renewal notices

The following information will be exempted from public disclosure under the Public Information Act:

Documents reflecting the financial condition of the applicant, seller, provider, or administrator
The identity or number of service contract holders
Other documents that are claimed at the time of submission to be confidential for proprietary or competitive purposes
Former residential service companies licensed by the Texas Real Estate Commission (TREC) as of September 1, 2021, must register with the TDLR by January 1, 2024 and will no longer be able to offer residential service contracts on that date if a registration is not completed.
If you maintained financial security at TREC using a bond as of May 1, 2021, you may continue to use this financial security until January 1, 2026 if only offering residential service contracts.

If you have any questions, please contact customer service.

Residential Service Companies Summit - Video Now Available

December 15, 2021

TDLR held a Virtual Summit for Residential Service Companies (Home Warranties) on December 14, 2021. You can watch the summit on TDLR's YouTube channel.

Residential Service Companies (Home Warranties)

September 1, 2021

Oversight of the Residential Service Companies (Home Warranties) (RSC) program was transferred to TDLR from the Texas Real Estate Commission (TREC) on September 1, 2021.

Residential Service Companies are licensed to provide consumers with contracts also known as Home Warranties.

Residential service contracts cover the cost of replacing or repairing damage to large home appliances or residential electrical, plumbing, heating, cooling or air conditioning systems caused by a power surge, a defect in materials or workmanship, or damage caused by normal wear.

These contracts are typically, although not always, offered when you purchase a home, and should not be confused with warranties provided by builders to cover any issues related to the construction of the home. Texas consumers should always check to see if the Residential Service Company they are considering is licensed by TDLR and review contracts carefully before choosing one.

It’s important to note that you are not required to purchase a residential service contract when you purchase a home.

Questions you should ask when choosing a residential service company include:

How much will the plan cost?
How long does the plan last?
What specific items does the residential service contract cover?
Are there any limits to the coverage? Are there incidents that would not be covered?
Is there a limit to how much the company will pay?
Would a pre-existing condition void coverage?
Is there a fee for service calls?
Who will decide what company will make any repairs?
How fast will any repairs be made?
Will the plan replace an item that can’t be repaired?

RSC Ombudsman Program