Texas New-Build Money Control Guide
What Happens to Earnest Money on a Delayed New Build?
A construction delay in Texas alone does not decide what happens to earnest money. First identify the payment, who holds it, the signed document that created it, the contractual completion and closing events, the notice path, and whether a written amendment, termination, default, release, demand, objection, or closing event has occurred. Do not treat an option fee, builder-held deposit, upgrade payment, change-order deposit, appraisal fee, inspection fee, or rate-lock expense as earnest money without documentary proof.
Quick answer, current August 29, 2026: A delayed new build does not automatically make earnest money refundable, forfeited, or releasable. Classify every payment, then read the executed contract’s completion, closing, extension, notice, amendment, termination, default, and escrow provisions. The current TREC New Home Contract for incomplete construction supplies one useful control map, but only the buyer’s actual signed file can establish the applicable process. A Texas attorney should decide disputed legal effect.
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Which Payment Is Actually Earnest Money?
Begin with labels, receipts, payees, and documents. The person who called a payment a “deposit” may have used the word casually. The legal and financial treatment belongs to the agreement that required the payment and the evidence showing where the money went.
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Build one row for every transfer. Record the amount, date, payer, payee, holder, cleared-funds proof, stated purpose, credit-at-closing treatment, and the paragraph or separate agreement that governs release or refund. If the file does not answer one of those fields, mark it unresolved.
| Money bucket | Document to retrieve | Holder or recipient to verify | Question that matters | Do not assume |
|---|---|---|---|---|
| Earnest money | Executed contract, addenda, receipt, and escrow instructions | Named escrow agent | Was this amount delivered as earnest money, and what event affects it? | Every payment to a builder is earnest money |
| Additional earnest money | Contract deadline and additional receipt | Named escrow agent | Was the amount timely delivered and correctly classified? | A later builder invoice proves the contract treatment |
| Option fee | Contract option paragraph, receipt, and notice record | Named escrow agent and any authorized release to seller | Was it timely, what option period exists, and was notice effective? | A construction delay makes the option fee refundable |
| Reservation or lot deposit | Reservation form, purchase agreement, and deposit schedule | Builder, affiliate, escrow agent, or other named party | What exact language governs credit, refund, release, and dispute? | TREC’s escrow paragraph necessarily governs builder-held money |
| Selection or design deposit | Selection sheet, design-center agreement, allowance, and receipt | Builder, design center, or vendor | Is it a purchase, credit, deposit, or price adjustment? | It is earnest money because it was paid before closing |
| Change-order deposit | Written change order and incorporated Construction Documents | Builder or other named recipient | What scope, credit, cancellation, and delay terms apply? | It follows the earnest-money release process |
| Third-party cost | Lender, appraisal, inspection, insurance, survey, attorney, housing, moving, or storage agreement | Service provider | Was the service performed, and what refund or extension policy controls? | An earnest-money result recovers the separate cost |
The current TREC form itself separates the option fee and earnest money. It also treats buyer expenses at closing as another category. That structure is a useful reminder: use the document’s own label before discussing consequences.
The broad deposit and price review belongs in What Should I Review in a Texas Builder Contract?. This guide takes the narrower question after the buyer has paid money and a delay appears.
If the money bucket is wrong, every later refund or forfeiture conclusion can be wrong too.
Which Documents Control the Delayed New-Build Money?
Start with the entire executed transaction file, not a screenshot of the builder portal. The controlling hierarchy can include the signed purchase contract, incorporated Construction Documents, addenda, exhibits, selections, change orders, amendments, notices, receipts, escrow correspondence, lender documents, and third-party agreements. A custom builder contract can create a different hierarchy from a TREC form.
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| Document layer | Evidence to collect | Question it answers | Professional owner |
|---|---|---|---|
| Executed purchase contract | Final signed version, effective date, completed blanks, initials, signature pages | Which form and business terms govern? | Parties, agent for organization, Texas attorney for legal effect |
| Incorporated construction file | Plans, specifications, finish schedule, allowances, written changes | What work and completion standard were agreed? | Builder, inspectors, engineer, attorney as needed |
| Addenda and notices | Every checked or listed item and proof of delivery | Which financing, appraisal, property, district, or notice terms supplement the contract? | Document issuer and qualified professional |
| Money records | Wire or check evidence, receipts, cleared funds, ledger, escrow confirmation | What was paid, when, to whom, and how classified? | Buyer, escrow agent, builder, and provider |
| Delay record | Portal updates, emails, schedules, inspection status, amendment request | Was an estimate moved, a contract date implicated, or a written change proposed? | Builder and attorney for contract effect |
| Lender and appraisal file | Loan Estimate, lock agreement, extension policy, approval conditions, appraisal status | Which financing costs and deadlines changed? | Licensed lender and appraiser |
| Third-party agreements | Inspection, housing, mover, storage, insurer, survey, attorney agreements | Which separate refund, cancellation, or extension terms apply? | Each provider |
Do not let a later email silently replace the signed contract. If the parties intend to change a contract term, the executed document’s amendment rules matter. Current TREC Form 23-20 states in Paragraph 22 that the agreement can be changed only by written agreement (Texas Real Estate Commission, Form 23-20, Paragraph 22, accessed August 29, 2026).
The buyer-representation agreement is also separate from the builder purchase contract. Use What Happens to My Agreement With a Texas Builder? for that distinct relationship.
The first controlling fact is the exact signed document, not the builder’s latest verbal explanation.
What Does Current TREC Form 23-20 Say?
The Texas Real Estate Commission identifies New Home Contract (Incomplete Construction), Form 23-20, as effective July 1, 2026 and intended for a new home whose construction has not been completed by the builder. That official status does not mean every builder uses it or that it governs an unknown transaction (TREC, New Home Contract landing page, accessed August 29, 2026).
Use the official TREC Form 23-20 landing page together with the current official form PDF. Recheck both before relying on them.
| Form section | Current control | Delay question | Boundary |
|---|---|---|---|
| Paragraph 5 | Earnest money, additional earnest money, option fee, delivery, option notice, and strict timing | What was delivered, when, and under which negotiated blanks? | Do not infer a current termination right or money result |
| Paragraph 7C | Written change orders and cost adjustments | Does an upgrade payment belong to a written change order? | Do not relabel it as earnest money |
| Paragraph 7E | Commencement, substantial-completion date, definition, listed delays, and outer Closing Date boundary | Which date or event is actually implicated? | Do not decide that a listed delay applies |
| Paragraph 9 | Closing Date and reference to Paragraph 15 if a party fails to close | Was the contract Closing Date changed, reached, missed, or extended under its terms? | A projected completion update is not automatically a Paragraph 9 event |
| Paragraph 15 | Default remedies described for buyer or seller noncompliance | Has a qualified attorney found a contract default? | Do not declare default, forfeiture, refund, damages, or specific performance |
| Paragraph 18 | Escrow, closing application, release, demand, objection, disbursement process, and stated consequences | What procedure applies after a valid contract event? | Escrow administration does not decide disputed legal entitlement |
| Paragraph 21 | Written notice and permitted delivery paths | Was required notice sent effectively to the correct recipient? | A phone call or portal update may not satisfy notice |
| Paragraph 22 | Entire agreement, written change requirement, and incorporated addenda or notices | Did the parties sign a valid written amendment? | Do not assume an email changes the contract |
| Paragraph 23 | Attorney consultation and no legal advice from brokers or sales agents | Which legal-effect question needs counsel? | Agent organization is not legal interpretation |
TREC separately explains that a buyer’s promise to buy and seller’s promise to sell can supply consideration and directs contract-validity questions to a private attorney. Failure to deliver earnest money can activate choices described in the form, but TREC does not decide the specific result. See the TREC earnest-money delivery FAQ.
Use Form 23-20 as a paragraph map only after confirming it is the contract the parties actually signed.
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Kaitlin can organize which question belongs to the builder, escrow agent, lender, inspector, appraiser, or Texas attorney.
Which Delay Event Actually Happened?
“The new build is delayed” can describe several different events. The builder may have moved a projected portal date. The contract’s substantial-completion deadline may be approaching. A stated extension may be asserted. The Closing Date may be proposed for amendment. A lender deadline may move even though the purchase contract has not. A party may send notice, allege default, seek termination, request release, or make an escrow demand.
Classify the event before discussing money. The same delay narrative can lead to different procedures depending on the actual document and fact sequence.
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| Reported event | Evidence required | Money question | Safe control step |
|---|---|---|---|
| Projected completion moves | Portal, sales estimate, builder email, contract, and Construction Documents | Did any controlling money provision change? | Compare the estimate with signed completion and closing terms |
| Substantial-completion event is disputed | Contract definition, governmental and lender approvals, construction evidence, notices | Does the contract provide a current path affecting money? | Preserve evidence and obtain contract-specific legal advice |
| Builder invokes a listed delay | Contract clause, event evidence, duration support, written notice if required | What date, if any, changes under the actual clause? | Do not accept or reject legal applicability without review |
| Closing Date amendment proposed | Contract, proposed amendment, lender and escrow calendars | What rights, deadlines, costs, and money fields change if signed? | Review the full impact before signing or declining |
| Buyer wants to exit | Contract, addenda, notices, receipts, and attorney advice | Which bucket follows which clause? | Do not send improvised notice or stop performance |
| Default allegation appears | Exact allegation, clause, performance record, notices, receipts | What remedy is being claimed and why? | Contact a Texas attorney promptly |
| Release or disbursement stalls | Termination, release, demand, objection, and escrow correspondence | Is this administration, disputed entitlement, or both? | Follow the actual escrow procedure and legal advice |
The broader schedule-control questions are covered in What If My Texas Builder Changes the Completion Date?. This article keeps the focus on payment classification and the event that could affect each bucket.
A date update is not a money outcome. It is a fact that must be connected to the controlling document.
How Do Completion and Closing Differ in Form 23-20?
Current Form 23-20 Paragraph 7E contains a substantial-completion structure. It calls for a commencement deadline, a date by which improvements will be substantially completed and ready for occupancy, and a definition tied to final inspection and approval by applicable governmental authorities and any lender. It lists categories of delay that can add time and then states that the time for substantial completion may not extend beyond the Closing Date.
Paragraph 9 separately defines the Closing Date using the filled blank and a provision connected to certain title objections. It points to Paragraph 15 if a party fails to close by the Closing Date. The legal effect of facts under those provisions is not for an agent or article to decide.
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| Date or event | Where it appears | What to verify | Do not conclude |
|---|---|---|---|
| Sales estimate | Marketing, portal, email, conversation | Whether it was incorporated or merely informational | It is the contract completion deadline |
| Construction commencement | Paragraph 7E blank or custom equivalent | Completed blank, effective date, and evidence | Missing it automatically creates termination |
| Substantial completion | Paragraph 7E and Construction Documents | Exact date, definition, approvals, listed-delay evidence | A superintendent’s estimate proves the event |
| Closing Date | Paragraph 9 or custom contract | Completed blank, contractual adjustments, and written amendments | It always moves with a completion estimate |
| Rate-lock expiration | Loan Estimate and lock agreement | Date, time, conditions, extension options, and cost | It changes the purchase contract by itself |
| Temporary-housing or moving deadline | Separate third-party agreement | Cancellation, extension, notice, and payment terms | The builder contract controls it automatically |
Paragraph 7E does not support a universal claim that every delay is excused. It also does not support a universal claim that missing an estimate creates a refund. The executed blanks, listed facts, amendments, notices, and professional interpretation control.
Keep projected completion, substantial completion, Closing Date, financing dates, and personal move dates on separate rows.
How Do Notice, Release, Demand, and Objection Work?
Entitlement and administration are different. A contract event may need valid notice. A termination notice may not itself cause immediate disbursement. The escrow agent may require a written release. A party may make a demand. Another party may object. A dispute may require legal resolution.
Current Form 23-20 Paragraph 21 requires written notices and lists delivery methods. Paragraph 18 says the escrow agent is not a party to the contract and may require good funds. If no closing occurs, it says the escrow agent may require a written release and payment of authorized unpaid expenses before releasing earnest money.
Paragraph 18C describes a demand process with a 15-day objection period after the other party receives the demand. Paragraph 18D contains a seven-day period and stated potential consequences for wrongful refusal to sign a release. The article cannot decide whether a refusal is wrongful, whether the procedure was satisfied, or who is entitled to money (TREC, Form 23-20, Paragraph 18, accessed August 29, 2026).
| Control step | Evidence | Question | Boundary |
|---|---|---|---|
| Notice | Written notice, correct recipient, permitted method, sent and receipt evidence | Was the contract’s required notice effective? | Do not rely on a call or informal portal message |
| Termination record | Contract right relied on, form or attorney document, date, delivery proof | Was there a valid termination under the file? | Agent organization is not a legal conclusion |
| Release request | Escrow form, signatures, request date, correspondence | What does the escrow agent require? | A missing signature does not prove entitlement |
| Written demand | Demand, delivery to other party, escrow confirmation | Which Paragraph 18 or custom procedure applies? | Do not import TREC terms into a custom contract |
| Objection | Written objection and confirmed escrow receipt | Was it received within the applicable procedure? | Do not calculate a legal deadline casually |
| Disbursement | Escrow decision, good-funds status, authorized expenses, release or legal instruction | What may the holder do under the actual documents? | Do not promise immediate payment |
| Dispute | Complete file and attorney advice | Who claims entitlement and on what basis? | TREC does not decide private entitlement |
TREC’s FAQ says the Commission does not decide which party is entitled to earnest money and points monetary and civil-remedy questions to a private attorney (Texas Real Estate Commission, Frequently Asked Questions, accessed August 29, 2026). TREC also says its forms can allow an escrow holder to require agreement and a release before disbursement.
Do not confuse a claim to earnest money with the escrow agent’s authority to release it.
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Kaitlin can help separate the factual receipt, notice, release, demand, objection, and lender files for the professionals who control each answer.
What If the Builder Uses Its Own Contract?
Do not paste TREC Paragraph 18 onto an attorney-prepared builder agreement. Identify the exact contract, deposit schedule, construction exhibits, completion clause, force-majeure or extension clause, outside date if any, closing terms, notice rules, amendment requirements, termination provisions, default remedies, dispute process, attorney-fee clause, and every separate payment agreement.
A builder-held deposit may be governed by a reservation agreement or purchase agreement rather than an escrow paragraph. A design-center charge may be a purchase for selected materials. A change-order payment may have a separate credit or cancellation rule. The signed language and actual recipient control the classification.
| Custom-contract field | Exact question | Evidence owner | Attorney question |
|---|---|---|---|
| Deposit definitions | Which payments are defined, and are any called earnest money? | Contract, payment schedule, receipts | What legal effect follows each definition? |
| Holder and use | Who receives the money, and may it be used before closing? | Builder and holder records | What duties and remedies apply? |
| Completion and extension | What event, date, standard, and extension language appears? | Contract and construction record | Does the current fact fit the clause? |
| Closing and amendment | How is closing set or changed? | Contract and proposed amendment | What changes if the buyer signs or declines? |
| Termination and default | Which rights, notices, cure periods, remedies, and limitations are written? | Complete executed file | Is any right currently available or any party in default? |
| Dispute process | What release, mediation, arbitration, venue, or litigation language applies? | Contract and attorney | What procedure and deadline control? |
Do not add legal language to Special Provisions or an amendment through an agent. Current TREC Form 23-20 Paragraph 23 states that TREC rules prohibit brokers and sales agents from giving legal advice. A party or the party’s attorney should draft legal terms.
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When the builder uses a custom contract, the custom money and dispute language must be mapped from the beginning.
What Happens to Lender and Third-Party Costs?
A rate-lock extension, appraisal update, inspection, insurance binder, temporary-housing extension, mover change, storage charge, survey, or attorney fee is not automatically earnest money. Each has its own provider, agreement, status, and refund or extension policy.
The Consumer Financial Protection Bureau tells buyers to check the top of page one of the Loan Estimate to see whether the rate is locked and until when. It also warns that missing the lock expiration can lead to an extension fee and recommends asking the lender about options, cost, and policy (CFPB, Choose a Loan Offer, last modified December 12, 2024).
Regulation Z Section 1026.37 requires a locked Loan Estimate to state the lock expiration date and time. It also permits specified revised-disclosure language for some new-construction transactions expected to settle 60 days or more after the Loan Estimate (Consumer Financial Protection Bureau, Regulation Z Section 1026.37, accessed August 29, 2026). Those disclosure rules do not promise approval, appraisal, a free extension, or closing.
| Separate cost | Document to request | Question to ask | Do not assume |
|---|---|---|---|
| Rate-lock extension | Loan Estimate, lock agreement, lender extension policy, written quote | What is locked, until when, under what conditions, and at what current cost? | The builder or lender will pay |
| Appraisal | Appraisal order, report status, lender requirements | Will an update or new service be required, by whom, and at what disclosed cost? | The appraisal remains valid or the value is unchanged |
| Inspection | Inspector agreement, completed work, reschedule and cancellation terms | What service was performed or must be repeated? | It is recovered with earnest money |
| Insurance | Quote, binder, effective date, underwriting requirements | What must be refreshed if closing moves? | Coverage or premium remains available |
| Temporary housing, movers, and storage | Separate contracts and change policies | What notice, availability, and additional charge applies? | The purchase contract pays these costs |
| Survey, title, and attorney | Engagement, order, invoice, and status | What work is complete, transferable, refundable, or newly required? | Every fee follows one outcome |
A preferred-lender or affiliated-lender condition is a separate issue. Use Can a Texas Builder Require Its Preferred Lender? to compare that file without collapsing it into earnest-money entitlement.
Every third-party cost needs its own document, current status, policy, owner, and next deadline.
What Should I Review Before Signing a Delay Amendment?
A proposed amendment can move more than one date. Review it against the full file before signing. Ask what changes, what stays unchanged, which prior notice or claim is preserved or waived, how every money bucket is treated, and what financing or housing cost changes outside the contract.
| Amendment field | Current file | Proposed change | Evidence owner | Do not infer |
|---|---|---|---|---|
| Completion | Current date, definition, extension evidence | New date, standard, or extension wording | Builder and attorney | The change is administrative only |
| Closing | Current Closing Date and contractual adjustments | New date and related deadlines | Parties, title, lender, attorney | Every other deadline moves automatically |
| Earnest money | Amount, holder, receipt, current provisions | Any additional payment, credit, release, waiver, or remedy language | Escrow agent and attorney | Silence preserves every argument |
| Builder deposits and changes | Each separate agreement and payment | New treatment, credit, scope, or deadline | Builder and attorney | They follow earnest money |
| Financing | Approval conditions, lock, appraisal, disclosure dates | Extension, redisclosure, or updated condition | Licensed lender and appraiser | Approval, rate, or appraisal is guaranteed |
| Outside costs | Housing, movers, storage, insurance, inspection, survey | New date, fee, availability, or cancellation term | Each provider | The builder accepts responsibility |
| Rights and disputes | Existing notice, default, termination, dispute, and fee language | Release, waiver, reservation, cure, or new process | Texas attorney | Signing has no legal effect beyond the date |
Get the lender’s response in writing before assuming a new contract date works with the loan. Get the escrow agent’s factual confirmation of the money currently held. Ask a Texas attorney to explain the amendment’s legal effect, including any waiver, release, new obligation, or deadline.
The incentive-timing question remains separate. Should I Buy Now or Wait for Prosper Builder Incentives? addresses a buyer’s current-versus-future offer decision, not money already governed by a delayed signed contract.
Never sign a one-line date change until the money, financing, housing, notice, and rights fields have been checked.
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How Do I Build the Delayed New-Build Money Control File?
The Delayed New-Build Money Control File is the original decision asset for this guide. It turns a stressful builder update into a document, money, event, owner, and deadline map. Leave a cell unresolved when the evidence is missing. Do not fill it with a favorable assumption.
| Control row | Evidence | Controlling document | Current status | Owner | Next deadline |
|---|---|---|---|---|---|
| Executed contract | Final signed file, effective date, completed blanks | Purchase contract | Verified or unresolved | Buyer, agent, attorney | Review date |
| Earnest money | Amount, payment proof, receipt, cleared funds, holder | Earnest-money paragraph and escrow file | Held, credited, disputed, or unresolved without legal conclusion | Escrow agent | Contract or escrow date |
| Additional earnest money | Amount, delivery deadline, receipt | Contract | Verified or unresolved | Buyer and escrow agent | Exact contract date |
| Option fee | Amount, receipt, delivery, option blank, notice proof | Contract | Verified or unresolved | Buyer, escrow agent, attorney | Exact contract date |
| Builder-held deposit | Payment, holder, purpose, credit, refund terms | Reservation or purchase agreement | Verified or unresolved | Builder and attorney | Document date |
| Selections and changes | Written selections, change orders, deposits, credits | Construction Documents and separate agreements | Verified or unresolved | Builder, design center, attorney | Selection or change date |
| Projected completion | Portal, email, sales estimate | Informational source unless incorporated | Dated estimate | Builder | Next update |
| Contract completion | Date, definition, approvals, extension evidence | Contract and Construction Documents | Verified or disputed | Builder and attorney | Contract date |
| Closing Date | Current date, title adjustments, amendments | Contract | Verified or proposed change | Parties, title, attorney | Contract date |
| Written notice | Text, sender, recipient, method, sent and receipt proof | Notice paragraph | Verified or unresolved | Sender and attorney | Applicable date |
| Release, demand, objection | Escrow forms and correspondence | Escrow paragraph or custom terms | Administrative fact only | Escrow agent and attorney | Applicable procedure |
| Rate lock | Loan Estimate, lock agreement, expiry, written options | Lender file | Locked, floating, expiring, or unresolved | Licensed lender | Exact date and time |
| Appraisal and approval | Order status, conditions, update requirements | Lender and appraisal file | Verified or unresolved | Lender and appraiser | Written lender date |
| Third-party costs | Provider, service, invoice, refund or change policy | Separate provider agreement | Performed, scheduled, changed, or unresolved | Each provider | Provider date |
| Proposed amendment | Exact draft and comparison with current contract | Written amendment | Unsigned, signed, rejected, or unresolved | Parties and attorney | Decision date |
| Attorney handoff | Contract, timeline, payment map, questions | Engagement and advice | Open or complete | Texas attorney | Advice deadline |
Use the file as a routing tool. The builder owns factual construction updates and its proposed business terms. The escrow agent owns factual receipt, holder, form, and administrative-process information. The lender owns the financing file. Each third-party provider owns its agreement. A Texas attorney owns legal interpretation and disputed rights.
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“Buying a house is a lot like eating an elephant. You do it one step at a time.” Here, that means one money bucket, one contract event, one written notice, and one professional owner at a time.
The file is complete when every material payment and event has evidence, a controlling document, an honest status, an owner, and a next deadline.
Which Next Steps Are Defensible?
The control file can support four practical paths. The path describes the next evidence step, not a legal outcome.
| Path | Evidence state | Next action | Warning |
|---|---|---|---|
| Continue under current documents | The buyer accepts the current uncertainty, and no unresolved item currently blocks the personal decision | Monitor construction, lender, escrow, and third-party dates in writing | No completion, approval, appraisal, rate, or closing promise follows |
| Evaluate a written amendment | A change is proposed and all affected money, date, financing, and rights fields are mapped | Obtain lender and attorney review before signing or declining | Do not describe the amendment as a harmless date change |
| Preserve a possible contract position | A material date, notice, performance, default, or money issue is disputed | Stop informal interpretation and obtain Texas legal advice promptly | Do not send improvised notice, cease performance, or promise entitlement |
| Resolve escrow administration | A valid event has occurred but release, demand, objection, or disbursement remains incomplete | Follow the actual escrow procedure and attorney guidance | Administrative delay does not decide legal entitlement |
The purpose is not to make a delayed build feel simple. It is to prevent one anxious word, “deposit,” from hiding several different payments and legal paths.
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A calm decision begins with exact classification and ends with the right answer from the right document owner.
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Frequently Asked Questions
Does a Texas new-build delay automatically refund my earnest money?
No. A delay alone does not decide refund, forfeiture, release, termination, default, or damages. Identify the executed contract, the money actually classified as earnest money, the completion and Closing Date provisions, any extension, effective notice, amendment, termination, default allegation, release, demand, objection, and escrow procedure. A Texas attorney should decide disputed legal effect.
Is my option fee the same as earnest money?
No. Current TREC Form 23-20 treats the option fee and earnest money as separate buckets, even when delivered together. Their timing, credit, release, and termination treatment differs under Paragraph 5. Confirm the completed blanks, receipts, notice record, and actual signed contract before drawing any conclusion.
Are builder deposits and upgrade deposits held in escrow?
Not necessarily. A reservation, lot, design, selection, or change-order payment may be held by the builder, an affiliate, a vendor, an escrow agent, or another named recipient. Read the agreement and receipt that created each payment. Do not import TREC’s earnest-money escrow process into a separate builder document.
What does TREC Form 23-20 say about delayed completion?
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Paragraph 7E contains commencement and substantial-completion blanks, defines substantial completion, lists certain construction-delay categories, and states that time for substantial completion may not extend beyond the Closing Date. Paragraph 9 separately addresses closing. The actual blanks, facts, notices, amendments, and legal interpretation control any specific result.
Can I cancel if the builder misses an estimated date?
An estimated portal, sales, or superintendent date is not automatically a contractual cancellation right. Compare it with the executed completion, extension, Closing Date, notice, amendment, termination, and default provisions. Do not send an improvised notice or stop performance before a Texas attorney reviews the exact file.
What happens if the seller will not sign an earnest-money release?
Review the actual escrow clause, termination record, release request, written demand, objection procedure, and escrow agent’s requirements. Current TREC Form 23-20 describes a demand and objection process, but the article cannot decide entitlement, wrongful refusal, liability, or disbursement. Obtain contract-specific legal advice.
Who pays a rate-lock extension when construction is delayed?
There is no universal payer or outcome. Ask the lender in writing what is locked, the expiration date and time, extension options, conditions, and current cost. Then review the builder contract, amendment, incentive documents, and responsibility question with the lender and a Texas attorney. Do not assume approval or a free extension.
What documents should I collect before responding to a delay?
Collect the final signed contract, incorporated Construction Documents, addenda, amendments, notices, payment receipts, escrow confirmations, builder updates, completion and closing evidence, Loan Estimate, rate-lock agreement, approval and appraisal status, third-party agreements, proposed amendment, release, demand, objection, and a dated question list for the appropriate professionals.
Primary Sources Reviewed
- Texas Real Estate Commission, New Home Contract Incomplete Construction, Form 23-20 landing page, accessed August 29, 2026.
- Texas Real Estate Commission, Form 23-20 current official PDF, all 11 pages extracted and reviewed August 29, 2026.
- Texas Real Estate Commission, Frequently Asked Questions, accessed August 29, 2026.
- Texas Real Estate Commission, earnest-money delivery FAQ, accessed August 29, 2026.
- Texas Real Estate Commission Rules, Section 535.146, accessed August 29, 2026.
- Texas Real Estate Commission, Changes to Delivery of Option Fee, accessed August 29, 2026.
- Consumer Financial Protection Bureau, Choose a Loan Offer, accessed August 29, 2026.
- Consumer Financial Protection Bureau, Regulation Z Section 1026.37, accessed August 29, 2026.
- Consumer Financial Protection Bureau, rate or fee changes, accessed August 29, 2026.
- Consumer Financial Protection Bureau, Closing Disclosure Explainer, accessed August 29, 2026.
This article provides general real-estate education, not legal, lending, appraisal, escrow, title, tax, insurance, inspection, engineering, construction, accounting, or financial advice. It does not determine entitlement to money, default, termination, cancellation, forfeiture, refund, damages, disbursement, loan approval, rate-lock treatment, appraisal, completion, or closing. Contracts and rules can change. Verify the exact signed file with the builder, escrow agent, licensed lender, appraiser, title team, inspector, insurer, and a Texas attorney as appropriate.
About Kaitlin Lovern
Kaitlin Lovern has represented more than 400 North Dallas families. She leads the Kaitlin Lovern Real Estate Team at Real Brokerage LLC and helps Texas new-build buyers organize contract, construction, escrow, lender, and payment evidence so the right professional can answer the right question.
Texas Real Estate license #0634293 | Real Brokerage LLC
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