Skip to main content

Your Rights as an HVAC Consumer in Texas

Texas law provides significant protections for homeowners hiring HVAC contractors. Knowing your rights before, during, and after the work can save you thousands and prevent major headaches.

Texas HVAC Licensing Requirements

Texas requires HVAC contractors to be licensed by the Texas Department of Licensing and Regulation (TDLR). Here's what to look for.

License Type Required For Verify At
Air Conditioning and Refrigeration Contractor License (Class A) Any HVAC installation, repair, or maintenance work on systems over 25 tons or work that requires engineering tdlr.texas.gov/LicenseSearch
Air Conditioning and Refrigeration Contractor License (Class B) HVAC installation, repair, and maintenance on residential and light commercial systems (under 25 tons) tdlr.texas.gov/LicenseSearch
EPA Section 608 Certification Any work involving refrigerant handling—technicians must be certified, not just the company Ask technician directly
Plumber's License (optional) If any gas piping or water connections are modified during install tsbpe.texas.gov

Important: The company AND the technician working on your system should be properly licensed. Ask to see the technician's EPA 608 certification if they'll be handling refrigerant.

Your 6 Core Rights as an HVAC Consumer

These rights are protected by Texas law. Don't let any contractor convince you otherwise.

Right to Licensed Work

Texas law requires HVAC contractors hold a TDLR ACR license. Unlicensed work is illegal and leaves you without protection.

Your Action: Verify license at tdlr.texas.gov before any work begins. Get the license number in writing.

If Violated: Unlicensed contractors face fines of $500-$5,000 per violation. You can report them to TDLR.

Right to Written Estimates

You have the right to receive a detailed written estimate before authorizing work. Verbal quotes are not enforceable.

Your Action: Insist on written estimates that itemize equipment, labor, permits, and any potential additional costs.

If Violated: Contractors who significantly exceed written estimates may violate Deceptive Trade Practices Act.

Right to Proper Permits

Most HVAC installations and major repairs require building permits. The contractor must pull permits—this is not your responsibility.

Your Action: Ask for permit numbers before work begins. You can verify at your city's building department.

If Violated: Unpermitted work can affect your insurance, resale value, and may need to be redone.

Right to Warranty Coverage

You're entitled to both manufacturer warranty (equipment) and contractor warranty (labor). These should be provided in writing.

Your Action: Get warranty terms in writing before final payment. Register equipment with manufacturer within 60 days.

If Violated: Failure to provide promised warranties may constitute Deceptive Trade Practices.

Right to Mechanic's Lien Protection

Texas allows suppliers and subcontractors to place liens on your property if the contractor doesn't pay them—even if you paid the contractor in full.

Your Action: Get a final lien waiver from the contractor and request conditional waivers from any subcontractors.

If Violated: Without waivers, you could be forced to pay twice for the same work.

Right to File Complaints

TDLR accepts complaints against licensed HVAC contractors. They can investigate, fine, or revoke licenses.

Your Action: File complaints online at tdlr.texas.gov/complaints. Include documentation.

If Violated: Contractors with repeated complaints may face license suspension or revocation.

What Your HVAC Contract Must Include

Before signing any contract, verify it includes these essential elements.

Contractor's legal business name and address

Needed to enforce contract or file complaints

TDLR license number

Proves legal authorization to perform work

Detailed scope of work

Defines exactly what work will be performed

Equipment model numbers and specifications

Ensures you get what you agreed to

Total price with itemized breakdown

Prevents surprise charges and enables comparison

Payment schedule and terms

Protects against excessive upfront payments

Start and completion dates

Creates accountability for timeline

Permit responsibilities

Clarifies that contractor will obtain required permits

Warranty terms (equipment and labor)

Documents your protection after installation

Change order process

Defines how additional work will be authorized and priced

Cancellation policy

Your 3-day right to cancel for door-to-door sales

Insurance certificate or coverage statement

Protects you from liability for accidents

Red Flag: If a contractor pressures you to sign a contract that's missing these elements, or refuses to provide them in writing, find another contractor. Verbal agreements are extremely difficult to enforce.

Red Flags That Indicate Rights Violations

Watch for these warning signs that a contractor may not respect your rights.

Won't provide license number

Likely unlicensed—walk away immediately

Action: Report to TDLR with company name and any identifying info

Demands full payment upfront

Standard practice is 10-50% deposit, balance on completion

Action: Refuse and find another contractor

Won't provide written contract

No protection if things go wrong

Action: Insist on writing or find another contractor

Says permits aren't needed

Most HVAC work requires permits—this exposes you to liability

Action: Verify with your city building department

Cash-only, no receipts

May be unlicensed, avoiding taxes, or planning to disappear

Action: Pay by check or card for documentation

Arrives in unmarked vehicle

Legitimate companies have branded trucks and uniforms

Action: Verify identity and license before any work

Pressures immediate decision

"Today only" pricing is a classic high-pressure tactic

Action: Any legitimate offer will stand for at least 24-48 hours

Won't provide insurance certificate

You could be liable for injuries on your property

Action: Verify insurance with certificate or cancel

Door-to-Door Sales: Extra Protections

If an HVAC salesperson comes to your home uninvited, you have additional federal and state protections.

3-Day Cancellation Right

For any sale over $25 made at your home (not your request), you have 3 business days to cancel in writing with full refund.

Source: Federal FTC Cooling-Off Rule and Texas Business & Commerce Code

Right to Written Notice

Contractor must provide you with a cancellation form and notice of your 3-day right at time of sale.

Source: FTC Cooling-Off Rule

Right Against High-Pressure Sales

Extreme high-pressure tactics or refusing to leave may constitute harassment or trespass.

Source: Texas Penal Code

To Cancel: Send written notice within 3 business days. Include date, your name, address, and clear statement that you're canceling. Send by certified mail and keep a copy. The contractor must return any payment within 10 days.

When Things Go Wrong: Step-by-Step Resolution

If you have a dispute with an HVAC contractor, follow this escalation path.

1

Document Everything First

Immediately Free

Take photos and videos of the issue. Save all receipts, contracts, text messages, and emails. Note dates and times of conversations.

2

Contact the Contractor in Writing

1-2 weeks Free (or ~$8 for certified mail)

Send a written notice (email or certified letter) describing the problem and requesting resolution. Give them a reasonable timeframe (7-14 days) to respond. Keep copies of everything.

3

File a TDLR Complaint

30-90 days for investigation Free

If the contractor is licensed and won't resolve the issue, file a complaint with TDLR. Include your documentation, contract, and photos. TDLR will investigate and may take action against the contractor's license.

4

Contact Texas Attorney General

Varies Free

For deceptive trade practices (false advertising, bait-and-switch, refusing to honor warranties), file a complaint with the Texas AG Consumer Protection Division. This creates a record and may trigger investigation.

5

Demand Mediation

2-4 weeks $100-$500 (split with contractor)

Many contracts include mediation clauses. Even without one, suggest mediation as a faster, cheaper alternative to court. The contractor may agree to avoid legal costs.

6

Small Claims Court

1-3 months to hearing $75-$150 filing fee (recoverable if you win)

For disputes up to $20,000, file in Justice of the Peace court. You don't need a lawyer. Bring your documentation, contract, and evidence. Court costs are minimal.

7

Civil Court with Attorney

6-18 months Attorney fees (may be contingency)

For damages over $20,000 or complex cases, consult a consumer protection attorney. Texas DTPA allows recovery of attorney fees if you win.

Deceptive Trade Practices Act Violations

The Texas DTPA provides powerful remedies for consumer fraud. These violations can result in up to 3x damages.

Violation Example Potential Remedy
False advertising "Licensed and insured" when they're not Up to 3x actual damages plus attorney fees
Bait and switch Quoting one price, then charging higher after work begins Difference plus potential treble damages
Failure to disclose Not revealing known defects in equipment Actual damages plus potential multiplier
Breach of warranty Refusing to honor written warranty terms Cost of repair/replacement plus damages
Unconscionable actions Grossly overcharging emergency repairs Difference from fair price plus penalties

Important: Before filing a DTPA lawsuit, you must send a demand letter giving the contractor 60 days to respond with a settlement offer. Many cases settle at this stage because contractors want to avoid the possibility of treble damages.

How to File a TDLR Complaint

TDLR can investigate licensed contractors and take action including fines and license revocation.

1

Gather documentation

Collect contract, receipts, photos, correspondence, and contractor license number

2

Visit tdlr.texas.gov/complaints

Select "File a Complaint" and choose Air Conditioning and Refrigeration

3

Complete online form

Provide contractor info, describe the problem, upload documents

4

Receive case number

TDLR will acknowledge receipt within 5 business days

5

Investigation begins

TDLR investigator may contact you, the contractor, and witnesses

6

Resolution

Outcomes include: no violation found, informal resolution, formal enforcement action, or license discipline

Note: TDLR investigates licensing and regulatory violations but cannot award you monetary damages. For compensation, you need to pursue small claims court or civil court separately. However, a TDLR finding of violation can help your court case.

Frequently Asked Questions

What should I do if an HVAC contractor refuses to honor a warranty?
First, review your contract to confirm the warranty terms. Send a written demand letter via certified mail referencing the specific warranty provision and giving 14 days to respond. If they still refuse, file a complaint with TDLR (for labor warranty issues) and contact the equipment manufacturer directly (for equipment warranty). The Texas Deceptive Trade Practices Act allows you to recover up to 3x damages for warranty violations, plus attorney fees, so mention this in your demand letter.
Can an HVAC contractor put a lien on my house?
Yes. Texas has broad mechanic's lien laws. If your contractor doesn't pay their suppliers or subcontractors, those unpaid parties can file a lien against your property—even if you paid the contractor in full. To protect yourself, request a final lien waiver signed by the contractor before making final payment, and for larger jobs, ask for conditional lien waivers from known subcontractors.
How do I verify a Texas HVAC contractor's license?
Visit tdlr.texas.gov and use the License Search function. Enter the contractor's name or license number. The search will show license status (active/inactive), license type (Class A or B), expiration date, and any disciplinary actions. A Class B license covers most residential work. If they're not found in the database, they're not licensed—walk away and report them.
What's the difference between manufacturer warranty and labor warranty?
Manufacturer warranty covers defects in the equipment itself—if the compressor fails due to manufacturing defect, the manufacturer replaces it. This typically lasts 5-10 years (10 years if registered within 60 days). Labor warranty covers the contractor's installation work—if the system leaks refrigerant because of improper brazing, the contractor fixes it at no charge. Labor warranties are typically 1-2 years but vary by contractor. Get both in writing.
Can I cancel an HVAC contract after signing?
It depends on how the sale occurred. For door-to-door sales (where the salesperson came to your home uninvited) over $25, you have a 3-business-day right to cancel under federal FTC rules and Texas law. For sales you initiated (calling a contractor for an estimate), there's no automatic cancellation right—you're bound by the contract terms. Always negotiate a cancellation clause before signing.
What happens if an unlicensed contractor damages my HVAC system?
Your options are limited because unlicensed contractors aren't regulated by TDLR. You can sue in small claims court (up to $20,000) or civil court for damages. File a complaint with the Texas Attorney General for deceptive trade practices. Report them to TDLR so they can pursue criminal charges for unlicensed activity. Unfortunately, unlicensed contractors often have no assets to collect—this is why verifying license upfront is critical.
Are HVAC diagnostic fees legal?
Yes, diagnostic or service call fees are legal and common. Contractors can charge to send a technician to evaluate your system—typically $75-$150 in North Texas. However, the fee should be disclosed upfront before the technician arrives. Many contractors waive the diagnostic fee if you proceed with recommended repairs. Get the fee policy in writing before scheduling service.
What permits are required for HVAC installation in Texas?
Requirements vary by city, but most jurisdictions require a mechanical permit for HVAC installations and changeouts. Some also require electrical permits if panel work is involved, and gas permits if gas lines are modified. The contractor is responsible for obtaining permits—never let them pressure you to pull permits yourself. Unpermitted work can void insurance, affect resale, and may need to be redone to sell your home.
How much deposit is reasonable for an HVAC installation?
Industry standard is 10-50% deposit, with the balance due upon completion and your satisfaction. Be very cautious of contractors demanding more than 50% upfront—this is a red flag. For emergency repairs, many contractors don't require deposits at all. Never pay the full amount before work is complete and tested. Texas law doesn't cap deposits, but the Deceptive Trade Practices Act may apply if the deposit is unconscionably high.
What can TDLR actually do about my complaint?
TDLR has significant enforcement powers. They can issue warning letters, assess administrative fines ($500-$5,000 per violation), require corrective action, suspend or revoke the contractor's license, or refer criminal charges to prosecutors. However, TDLR cannot directly award you money damages—for that, you need small claims court or civil court. Think of TDLR complaints as protecting future consumers while you pursue your own damages separately.
Can I sue an HVAC contractor in small claims court?
Yes. Texas small claims court (Justice of the Peace court) handles disputes up to $20,000. You don't need a lawyer. File at your local JP court—filing fees are $75-$150 and recoverable if you win. Bring your contract, photos, receipts, and any written communication. The process typically takes 1-3 months from filing to hearing. For amounts over $20,000, you'll need county court and likely an attorney.
What are my rights during emergency HVAC repairs?
Even in emergencies, you have the right to a licensed contractor, a reasonable estimate before work begins, and protection against price gouging. Texas doesn't have specific price gouging laws for HVAC (unlike disaster commodities), but the DTPA prohibits "unconscionable" pricing. Get a written estimate even for emergency work—a text message counts. If you feel prices are unreasonable, get a second opinion before authorizing work.

Official Resources

Work with a Contractor Who Respects Your Rights

Licensed, insured, and committed to transparent pricing and quality work.

Need help? I'm here!