Texas New-Construction Contract Guide
What Should I Review in a Texas Builder Contract?
Review the exact contract, every incorporated exhibit, the financing file, and the property file together before you sign. Confirm the parties and property, plans and specifications, price, deposits, change authority, completion language, financing and appraisal terms, inspection access, warranty documents, title and district notices, defaults, remedies, dispute clauses, closing, and possession. Public TREC new-home forms help buyers identify issues, but they do not prove which form a builder uses or what a proprietary contract means.
Quick answer, current August 28, 2026: Before signing a Texas builder contract, collect the exact proposed contract and every referenced addendum, plan, specification, finish schedule, allowance, incentive, lender disclosure, title item, HOA or district notice, warranty, and property record. Record who must do what, by when, what money is exposed, what the builder may change, what evidence is missing, and which legal-effect questions belong with a Texas attorney. Do not assume a TREC form, an option period, a refundable deposit, an inspection right, a completion promise, warranty coverage, financing approval, or a cancellation remedy applies unless the actual documents and current law support it.
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Which Texas Builder Contract Is in Front of Me?
Start with the form name, version, preparation source, proposed parties, property description, and every document the contract says is incorporated. TREC currently publishes Form 23-20 for new-home construction that is incomplete and Form 24-20 for completed new construction with no prior occupant. Both are effective July 1, 2026. Those public forms provide useful issue-spotting language, but they do not establish that a particular builder must or did use either form (TREC, Contracts, accessed August 28, 2026).
TREC Rule 537.11 contains exceptions to mandatory form use, including a form prepared by a property owner or drafted by an attorney and required by the property owner. A builder may therefore present a proprietary contract that allocates deadlines, deposits, changes, inspections, defaults, remedies, or disputes differently from a public TREC form. The safe first step is identification, not analogy (Texas Real Estate Commission, Rule 537.11 and current rules, accessed August 28, 2026).
| Opening check | Evidence to collect | Why it matters | Do not assume |
|---|---|---|---|
| Form identity | Title, form number, version date, drafter, and every page | Establishes the document actually proposed | That a public TREC form governs |
| Parties | Buyer names, builder entity, signature blocks, guaranties, and notice addresses | Shows who promises performance and who receives notices | That a salesperson and builder entity are interchangeable |
| Property | Lot, block, subdivision, address if assigned, plan, elevation, and legal description | Connects the agreement to one property | That a model-home label is sufficient |
| Incorporation | Every exhibit, addendum, schedule, drawing, allowance, rule, disclosure, and warranty named | Reveals terms outside the main pages | That a referenced document can be reviewed later |
| Conflicts | Priority clause, handwritten changes, later addenda, and signature dates | Shows which document may control when terms differ | That the newest-looking document controls |
Do not rely on a model-home conversation, rendering, brochure, email, or design-center note unless the signed documents give it contractual effect. Preserve each version offered to the buyer and record who supplied it and when. If a clause’s legal effect is unclear or documents conflict, send the complete set to a Texas attorney before signing.
The first completed result is a named contract package with no missing pages, exhibits, or unidentified parties.
What Four Document Layers Should I Collect?
This review method uses four control layers. The first is the proposed contract and addenda. The second is the incorporated construction package. The third is financing, appraisal, title, and settlement evidence. The fourth is property-specific evidence from issuing authorities and licensed professionals. None should be substituted for another.
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| Control layer | Core documents | Decision owned | Common gap |
|---|---|---|---|
| 1. Contract | Main agreement, addenda, incentives, notices, amendments, and signature pages | Written duties, dates, money, change authority, defaults, and remedies | A referenced addendum is missing |
| 2. Construction | Plans, specifications, finish schedules, allowances, selections, substitutions, and change orders | What the builder has agreed to build or install | The sales description differs from the signed specification |
| 3. Transaction | Loan Estimate, approval conditions, rate-lock evidence, appraisal path, title commitment, survey, Closing Disclosure, and settlement instructions | Financing, title, closing, cash, and lender conditions | An incentive is compared without matched lender terms |
| 4. Property | HOA, MUD or other district notice, PID notice if applicable, utilities, taxes, insurance, permits, inspections, warranties, and exact-address records | Property obligations, access, condition, coverage, and issuing-authority facts | A community-level statement is treated as address-specific proof |
Each item needs a source, date, version, and status. “Requested” is not the same as “received.” “Received” is not the same as “reviewed.” “Reviewed” is not the same as “resolved.” The file should keep those stages visible so a deadline cannot turn an open question into an accidental assumption.
Kaitlin can coordinate the real-estate file and identify missing transaction evidence. The builder answers its current written business terms. The lender answers the loan file. The title company answers the title and settlement file. Inspectors, insurers, appraisal districts, HOAs, districts, and utilities answer their own records. A Texas attorney answers disputed legal effect.
The second completed result is one indexed package that separates the four control layers and labels every missing item.
Which Property and Construction Details Must Match?
The main contract, plans, specifications, selection sheets, allowances, and change orders should point to the same home. Check the legal description, lot, plan, elevation, structural options, finish schedule, included features, exclusions, utility basis, and construction status. Marketing names are not substitutes for precise document identifiers.
TREC Form 23-20, used only as a public reference here, defines construction documents to include plans and specifications, finish schedules, change orders, and allowances that are signed and incorporated. Its printed structure also addresses written change orders, buyer selections, substitutions, commencement, substantial completion, closing, warranties, and insulation information. A proprietary contract may organize or allocate those topics differently, which is why the actual language controls (TREC, Form 23-20, effective July 1, 2026).
| Construction field | Compare across | Question to resolve | Evidence owner |
|---|---|---|---|
| Home identity | Contract, legal description, plat, plan, and permit records | Do all identifiers name the same home and lot? | Builder, title company, and issuing authority |
| Scope | Plans, specifications, finish schedule, included-features list, and model notes | Which exact items are included, excluded, or optional? | Builder in signed documents |
| Selections | Selection calendar, allowance schedule, design receipts, and written approvals | Who selects, by what deadline, within what budget, and with what consequence? | Builder and buyer file |
| Substitutions | Contract clause, specification, availability notice, and proposed substitute | Who may substitute, under what standard, and with what notice or approval? | Builder; attorney for disputed effect |
| Changes | Change-order clause, signed change orders, price revisions, and schedule revisions | Is the change signed, priced, funded, and added to the schedule? | Builder, lender, buyer, and attorney as needed |
| Insulation | Contract disclosure, specifications, labels, and installed condition | What R-value and material information is represented in writing? | Builder, supplier, inspector, and applicable records |
Photograph or save dated copies of approved selections and change orders. A design-center receipt may prove payment but still fail to show how a contract treats the item. A lender may also need to assess whether a change affects appraisal, cash to close, approval, or closing timing. Keep the construction and financing consequences in the same row.
The property section closes only when the contract package describes one identifiable home and every included, excluded, selected, substituted, or changed item has written support.
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How Should I Review Price, Deposits, and Changes?
Build one money schedule from the exact documents. Record the base price, lot premium, options, upgrades, allowances, deposits, earnest money if named, design payments, change-order charges, lender or title credits, taxes, insurance, HOA and district obligations, estimated settlement charges, and any amount due before closing. Identify whether each amount is paid, credited, financed, applied, disputed, conditional, or still estimated.
Do not publish or accept a universal rule that a builder deposit is refundable or nonrefundable. The answer depends on the exact clause, event, deadlines, notices, amendments, and applicable law. The same caution applies to allowances. An unused allowance does not automatically create a buyer refund, and an overage does not automatically receive one treatment across builders.
| Money item | Record | Contract question | External check |
|---|---|---|---|
| Purchase price | Base, lot, structural, design, incentive, and signed change amounts | Which documents change the stated price? | Lender and appraisal treatment |
| Deposits | Amount, payee, due date, application, condition, and receipt | What event controls application, return, or exposure? | Attorney if legal effect is material or disputed |
| Allowances | Category, included amount, selections, overage, unused balance, and approval | How is each difference treated in writing? | Lender and appraisal treatment when relevant |
| Change orders | Scope, price, payment timing, lender notice, appraisal effect, and schedule effect | Whose signatures are required before work? | Lender, appraiser, insurer, or inspector as applicable |
| Incentives | Issuer, eligibility, expiration, affiliated-provider condition, contract location, and settlement treatment | What earns, changes, or removes the benefit? | Matched Loan Estimates and settlement file |
| Closing cash | Current estimate, source, credits, prepaid items, reserves, and open variables | Which items remain estimates or conditions? | Licensed lender, title company, and qualified tax adviser |
Written change authority deserves special attention. Record whether the buyer, builder, or both may initiate a change; whether consent is required; how price and time are updated; what happens if a material is unavailable; and whether the buyer has a response deadline. Do not decide whether a disputed unilateral-change clause is enforceable from a blog. That is an attorney question based on the exact contract and facts.
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The money review is complete only when every dollar has a source document, due event, evidence owner, and unresolved-risk label.
What Financing and Appraisal Terms Need Written Proof?
Keep the contract’s financing language beside the lender file. The CFPB Loan Estimate is a standardized disclosure that helps a buyer compare loan terms and costs. It shows whether the rate is locked. A Loan Estimate is not final loan approval or a promise to fund, and material changes can produce a revised estimate (Consumer Financial Protection Bureau, Questions About Your Loan Estimate?, accessed August 28, 2026).
Confirm whether the actual contract contains a financing condition, an appraisal condition, a lender deadline, a preferred or affiliated-provider incentive, a rate-lock requirement, a closing-date consequence, or a buyer duty to provide information. If a TREC Third Party Financing Addendum is actually used, its printed structure separates buyer approval and property approval. Do not import that structure into a proprietary builder contract that does not contain it.
| Financing field | Written evidence | Question for the lender | Question for counsel or contract file |
|---|---|---|---|
| Loan program | Application, Loan Estimate, program disclosures, and approval conditions | Which buyer and property conditions remain? | What contract deadline or notice is tied to financing? |
| Rate and lock | Loan Estimate and written lock confirmation | Is it locked, through what date, and what can change? | What happens under the contract if completion moves? |
| Incentive | Builder addendum, affiliation disclosure, matched Loan Estimate, and settlement treatment | How does the current written benefit affect complete loan costs? | What earns or removes the benefit? |
| Appraisal | Contract clause, lender requirements, appraisal order, and current property package | What must the property and file satisfy? | What written rights or obligations follow a shortfall or delay? |
| Changes | Signed change order, revised price, selection cost, and lender acknowledgment | Does the change affect cash, reserves, approval, or appraisal? | Was the contract process followed? |
| Closing | Current Closing Disclosure when issued, title file, funding conditions, and builder notice | What remains before clear to close and funding? | How do contract closing and possession provisions operate? |
Compare lender options using the same home, price, down payment, loan program, occupancy, credit profile, points, lock period, taxes, insurance, HOA, district obligations, and closing assumptions. A headline rate or credit is not a complete comparison. For the separate provider-use issue, read Can a Texas Builder Require Its Preferred Lender?. For timing a current promotion, read Should I Buy Now or Wait for Prosper Builder Incentives?.
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The financing section closes with matched written disclosures, named open conditions, and no assumption that an estimate, incentive, appraisal, or preapproval guarantees closing.
How Do Completion, Closing, and Possession Differ?
Build a date map instead of relying on one verbal target. Label contract execution, deposit due dates, selection deadlines, change-order deadlines, financing milestones, rate-lock expiration, inspection access, substantial completion, governmental approvals, walkthrough, punch-list delivery, contractual Closing Date, funding, and possession. Each label should use the contract’s own wording.
TREC Form 23-20 separates substantial completion and the Closing Date in its printed structure and addresses specified delay events. That public form is an issue-spotting reference, not a universal builder promise. A proprietary agreement may define dates, extensions, notice, force majeure, completion, acceptance, closing, and possession differently.
| Date or milestone | Evidence | What it is not | Open-risk check |
|---|---|---|---|
| Sales projection | Dated builder communication | Automatically a contractual deadline | Where, if anywhere, does the contract give it effect? |
| Substantial completion | Actual contract definition and builder evidence | Automatically the same as closing, funding, or possession | Who determines it and what remains? |
| Governmental approval | Issuing-authority record | A buyer inspection or warranty determination | Which approvals are required by the contract or lender? |
| Closing Date | Filled contract, amendment, or proper notice under the actual agreement | Automatically the day construction first appears complete | What conditions, extensions, or notice terms apply? |
| Funding | Lender and title confirmation | Guaranteed by signing or a Loan Estimate | Which lender and settlement conditions remain? |
| Possession | Exact possession clause and closing evidence | Automatically granted at walkthrough or signing | When may the buyer lawfully occupy or move property? |
Ask the lender what happens if the rate lock expires, but do not publish a universal extension cost or result. Ask the insurer when coverage must begin. Ask the title company what it needs for settlement. Ask a Texas attorney what the contract means if dates conflict or a delay changes the buyer’s position. For the post-signing timing problem, use What If My Texas Builder Changes the Completion Date?.
The timeline is usable only when every milestone has a defined source, responsible party, evidence status, and consequence question.
Is the signing deadline moving faster than the evidence?
Kaitlin can help identify what is present, what is missing, and which question belongs with the builder, lender, title team, inspector, insurer, or Texas attorney.
What Inspection and Warranty Language Should I Flag?
Separate municipal or builder quality-control activity from a buyer-selected inspection. TREC’s inspector Standards of Practice apply to an inspection of a substantially completed one-to-four-family property for a buyer or seller. The rules also make clear that a builder quality-control report is not a substitute for the buyer’s chosen inspection. TREC has separately noted that it regulates inspectors and license holders, not home builders, and that builder access policies can affect inspections.
The contract should be checked for access, notice, permitted inspection stages, inspector requirements, site rules, report delivery, repair requests, reinspection, punch-list treatment, acceptance, closing, and what happens when the buyer or inspector identifies an issue. Do not assume a universal right to phased inspections or a universal builder duty to accept every request. The signed agreement, builder policy, construction stage, licensing rules, and professional scope control.
| Inspection or warranty item | Evidence to collect | Keep separate from | Question to flag |
|---|---|---|---|
| Independent inspection | Contract access clause, builder policy, construction status, inspector license, scope, and report | Municipal inspection and builder quality control | When and how may the buyer’s inspector access the property? |
| Punch list | Contract process, walkthrough record, written list, builder response, and completion evidence | A warranty claim or legal remedy | What is the submission, review, repair, and acceptance process? |
| Express builder warranty | Exact written warranty, exclusions, start date, claim process, and transfer terms | Home insurance and manufacturer warranty | What does the actual document cover and require? |
| Manufacturer warranty | Product, issuer, registration, receipt, assignment, term, and claim instructions | Builder warranty | Is it assignable and has the required evidence been delivered? |
| Service contract | Provider, contract, fee, coverage, exclusions, and claim process | Homeowners insurance | Who regulates and performs the promised service? |
| Chapter 27 process | Covered contract, required notice, actual defect facts, notices, responses, and counsel advice | A guarantee of repair, damages, or recovery | What current legal procedure applies to this actual dispute? |
Texas Property Code Chapter 27 requires specified notice language in covered written contracts. Section 27.007 uses a 10-point boldface standard, and the statutory notice describes a 60-day pre-suit or pre-arbitration notice and opportunity process. Those provisions are not a universal warranty, recovery promise, or instruction for a specific defect claim. A buyer with a dispute should preserve the contract, warranty, photos, inspection reports, communications, notices, and repair history and obtain Texas legal advice (Texas Property Code, Chapter 27, accessed August 28, 2026).
TDI distinguishes a home warranty or residential service contract from homeowners insurance. Keep warranty coverage, manufacturer documents, service contracts, builder obligations, insurance, and statutory procedures in separate rows. Never infer coverage from a label (Texas Department of Insurance, A Home Warranty Is Not Home Insurance, January 26, 2026).
The inspection and warranty section closes with access rules, reports, coverage documents, claim procedures, and legal flags separated by owner and purpose.
Which Title, HOA, District, Utility, and Insurance Files Matter?
Use the exact address and legal description. Collect the current title commitment, exception documents, recorded plat, survey or survey requirement, HOA documents and resale or new-sale materials, special-district notices, PID notice if applicable, utility evidence, current appraisal-district record, taxing-jurisdiction list, insurance quote, and any property-specific permit or approval relevant to the file.
TDI explains that Texas title policy language and title rates are standardized, while other closing fees may differ. TDI also says a buyer may choose a title company. If the contract, lender, builder, or incentive appears to affect provider selection, cost, timing, or eligibility, record the exact written terms and ask the appropriate professional. Do not resolve a disputed legal clause from a provider preference.
TREC Form 36-11 is a current HOA addendum for transactions using that approved form. TREC Form 59-0 addresses specified taxing or assessment districts and explicitly says it is not for public improvement districts. Texas Water Code Chapter 49 contains specified district-notice provisions, while Texas Property Code Section 5.014 addresses qualifying PID notices. These references show why district labels must be verified, not guessed.
The same boundary applies to taxes. The Texas Comptroller explains that local taxing units set local property-tax rates and appraisal districts determine property values under the state system. Do not publish one universal combined rate or bill for a new-construction home. The parcel, taxing jurisdictions, appraised value, exemptions, timing, and current notices control (Texas Comptroller, Property Tax System Basics, accessed August 28, 2026).
The property-obligation section is complete when every address-specific fact has a current issuing-authority document and no community-level shortcut remains.
Which Default and Dispute Clauses Need an Attorney?
Flag clauses governing buyer default, builder default, deposit exposure, liquidated damages, specific performance, limitation of liability, waiver, disclaimer, warranty limitation, notice, cure, arbitration, mediation, venue, governing law, jury waiver, attorney fees, claim deadlines, assignment, merger, survival, amendment, electronic signatures, and document priority. Do not label any clause fair, enforceable, favorable, or unfavorable without the exact language and Texas legal analysis.
Also flag facts that could activate those clauses: a missed selection, unpaid change order, financing problem, appraisal issue, delayed completion, denied access request, disputed substitution, failed walkthrough item, title exception, insurance problem, closing delay, possession dispute, or notice sent to the wrong address. The event and the clause belong in the same review row.
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A real estate license holder can explain the transaction process, identify a blank or conflict, help gather facts, and coordinate with the licensed professionals in their proper lanes. A license holder should not interpret a disputed contractual right, recommend a legal position, draft custom legal language, or predict a court or arbitration result. Kaitlin’s role is to make the file decision-ready, not to replace counsel.
| Legal flag | Exact material for counsel | Factual question | Do not conclude |
|---|---|---|---|
| Deposit or default | Clause, receipts, deadlines, notices, amendments, and communications | What happened, when, and who acted? | Automatic return, forfeiture, damages, or cancellation |
| Delay or extension | Definitions, date clauses, extension language, force-majeure language, and notices | Which milestone moved and what evidence exists? | Automatic termination, housing reimbursement, or damages |
| Change or substitution | Authority clause, specification, proposed change, notice, price, and schedule impact | Was the written process followed? | Validity, materiality, or remedy |
| Warranty or defect | Warranty, exclusions, inspection records, photos, repair history, and Chapter 27 notices | What condition exists and how was it documented? | Coverage, liability, repair, or recovery |
| Dispute procedure | Arbitration, mediation, venue, waiver, fees, limitation, and notice clauses | Which procedure and deadline might apply? | Enforceability or strategic value |
| Assignment or exit | Assignment, termination, default, consent, and transfer clauses | What change does the buyer seek? | A universal right to assign, cancel, or recover money |
The legal review queue is ready when counsel receives the exact clause, complete document set, dated facts, evidence, and a narrow written question.
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How Do I Use the Texas Builder Contract Review File?
Create one row for every clause, addendum, exhibit, selection, money item, deadline, property obligation, and unresolved question. This article’s original review file uses 12 columns. The framework is organizational, not a legal test. Its purpose is to expose missing evidence and route questions before a buyer signs.
| Source document | Clause or exhibit | Exact requirement | Buyer deadline | Builder deadline | Money at risk | Unilateral-change authority | Approval owner | Evidence received | Conflict | Legal-review flag | Status |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Main contract | Property and construction documents | Identify lot, plan, signed specifications, and incorporated exhibits | Before signing | Document delivery date | Deposit and purchase obligation | Record exact clause | Builder and buyer | List each file and version | Compare model, plan, and legal description | Yes if terms conflict | Resolved only when the same home and package match |
| Selection schedule | Selections and allowances | Name item, allowance, deadline, approval, and consequence | Exact selection date | Written approval or response date | Allowance, overage, or redesign cost | Record substitution or default authority | Builder and buyer | Signed schedule and receipts | Compare contract, design sheet, and price | Yes if consequence is unclear | Open until selected, signed, priced, and funded |
| Financing addendum | Approval, appraisal, lender, and incentive | Record actual conditions and notices | Exact application or approval date | Builder response or closing notice date | Deposit, incentive, rate-lock, and closing cash | Record provider or amendment authority | Lender, builder, title, and buyer | Matched disclosures and written offer | Compare contract and lender file | Yes if rights or consequences are unclear | Open until conditions and dates are named |
| Inspection clause | Access, reports, repair, and walkthrough | Name timing, notice, scope, and response process | Contract-defined request or report date | Access or response date | Inspection fee, closing exposure, and disputed item | Record builder access or repair authority | Builder, inspector, buyer, and counsel as needed | Policy, license, scope, report, and response | Compare contract, policy, and construction stage | Yes if access or remedy is disputed | Open until each process and owner is clear |
Use controlled statuses: missing, received, under review, conflict, professional review, resolved, or blocked. Add the date and person responsible for the next evidence item. A row is not resolved because someone says it is standard. It is resolved when the responsible source supplies the evidence and any legal-effect question has been handled by qualified counsel.
Keep the file with the contract versions, emails, receipts, inspection records, lender disclosures, title documents, district notices, warranty documents, and amendments. If a term changes, preserve the prior version and update the row rather than overwriting the history.
The Builder Contract Review File is finished when every row has an evidence owner, next action, date, risk label, and honest status.
What Should I Do Before I Sign?
First, pause the sales summary and ask for the complete proposed package. Second, confirm the exact buyer, builder entity, property, plans, specifications, allowances, selections, price, deposits, incentives, and deadlines. Third, align the lender, appraisal, title, survey, HOA, district, utility, tax, insurance, inspection, warranty, and closing evidence with that same home.
Fourth, run a conflict check. Compare the model-home representation with the signed specifications. Compare the advertised incentive with the contract, affiliated-business disclosure, Loan Estimate, and settlement treatment. Compare the sales completion projection with the contract definitions and Closing Date. Compare the community claim with the exact-address record. Compare the warranty label with the actual coverage document.
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Fifth, make the professional handoffs. Send financing questions to the licensed lender. Send title and settlement questions to the title company. Send condition and scope questions to a properly licensed inspector. Send coverage questions to the insurer or warranty provider. Send tax questions to the issuing authority or qualified tax professional. Send contract interpretation, enforceability, remedies, disputes, custom language, and legal consequence questions to a Texas attorney.
Sixth, keep a signed final set. Confirm every accepted amendment and change is in writing and included. Check initials, signatures, dates, notice addresses, and delivery. Keep payment receipts and verify instructions using independently confirmed contact information. Do not send funds based only on changed email instructions.
If the buyer already has a representation agreement, the separate relationship question belongs in What Happens to My Agreement With a Texas Builder?. This article stays focused on the builder contract and its supporting file.
The buyer is ready for a signing decision only when the exact package is complete, conflicts are visible, professional questions are routed, and the final accepted terms are preserved.
Who Should Answer Each Open Question?
The fastest review is not the one with the fewest questions. It is the one that sends each question to the source that owns the answer. Kaitlin can coordinate the file, track deadlines, explain the real-estate process within her license, and help the buyer compare property-specific evidence. She should not replace a lender, inspector, insurer, title professional, appraiser, tax professional, engineer, builder, issuing authority, or attorney.
Send product scope, availability, construction status, business terms, written incentives, selection procedures, access policy, and builder warranty documents to the builder. Send credit, program, underwriting, lock, cash-to-close, and funding questions to the licensed lender. Send title commitment, exceptions, survey, settlement, identity verification, and closing instructions to the title company. Send physical condition and inspection scope questions to the inspector.
Send coverage, exclusions, premium, bindability, and claims questions to the insurer or warranty provider as appropriate. Send HOA, MUD, PID, utility, permit, valuation, and tax questions to the current issuing authority for the exact address. Send disputed meaning, enforceability, drafting, remedies, default, waiver, arbitration, notices, damages, cancellation, deposit results, and legal strategy to a Texas attorney.
Pick a convenient time to connect
For every response, save the document or dated written evidence. A verbal answer can identify the next document, but it should not replace the written contract, disclosure, policy, official record, professional report, or legal advice that controls the decision.
“Buying a house is a lot like eating an elephant. You do it one step at a time.” Here, that means one document, one owner, one deadline, and one resolved question at a time.
The review moves forward when each open question has one qualified owner and one written evidence target.
Ready to turn the contract into a controlled decision?
Kaitlin Lovern and her team can help organize the builder, property, financing, inspection, title, and deadline file before you choose your next step.
Frequently Asked Questions
Are all Texas builder contracts the same?
No. TREC publishes public new-home forms, but its rules include exceptions for certain property-owner-prepared and attorney-prepared forms required by the owner. Identify the exact proposed contract, version, addenda, exhibits, and incorporated documents before comparing terms or asking a Texas attorney about legal effect.
Does every Texas builder use TREC Form 23-20?
No. Form 23-20 is TREC’s current public form for incomplete new-home construction, effective July 1, 2026, but it is not proof that every builder uses it. A proprietary builder contract may allocate deposits, changes, inspections, delays, defaults, remedies, and disputes differently.
Can my real estate agent explain the builder contract?
A Texas real estate license holder can explain the transaction process, identify missing documents or blanks, help gather facts, and coordinate qualified professionals within the license. Disputed meaning, enforceability, custom legal language, remedies, and legal strategy belong with a Texas attorney.
Call the North Dallas team: 214.429.4907
Should every model-home promise appear in writing?
Ask where each material representation appears in the proposed signed documents. Match the model, plan, elevation, specifications, finish schedule, allowance, selection, incentive, and change order to the exact home. Do not assume a verbal statement, rendering, brochure, or email is incorporated.
Can I hire my own inspector for a new Texas home?
Confirm the actual contract, builder access policy, construction stage, notice requirements, and inspector credentials. TREC’s standards distinguish a buyer-selected inspection from builder quality control, but no universal inspection-access or phase rule should be assumed for every builder contract.
Is a builder warranty the same as home insurance?
No. TDI distinguishes a home warranty or residential service contract from homeowners insurance. Keep the builder warranty, manufacturer warranties, service contract, insurance policy, exclusions, start dates, transfer terms, and claim procedures in separate rows.
Does a Loan Estimate mean my financing is approved?
No. A Loan Estimate is a standardized disclosure for comparing loan terms and costs. It can show rate-lock status, but it is not final approval or a promise to fund. Record underwriting, property, appraisal, documentation, lock, closing, and funding conditions separately.
When should a Texas attorney review the contract?
Before signing when the buyer needs interpretation of legal effect, custom language, enforceability, deposits, cancellation, default, remedies, delay, warranty, waiver, arbitration, venue, damages, notices, or conflicting documents. Send counsel the complete package, exact clause, dated facts, and narrow question.
Primary Sources Reviewed
- Texas Real Estate Commission, Contracts index, accessed August 28, 2026.
- TREC, New Home Contract Form 23-20, Incomplete Construction, effective July 1, 2026.
- TREC, New Home Contract Form 24-20, Completed Construction, effective July 1, 2026.
- TREC Rule 537.11 and current rules, accessed August 28, 2026.
- TREC, 2026-2027 Legal Update I, accessed August 28, 2026.
- TREC, Third Party Financing Addendum 40-11, effective January 3, 2025.
- TREC, Addendum for Property Subject to Mandatory Membership 36-11, effective July 1, 2026.
- TREC, Notice to Purchaser of Special Taxing or Assessment District 59-0, effective February 12, 2024.
- TREC, Inspector Standards of Practice, accessed August 28, 2026.
- TREC, Message From TREIC Chair Lee Warren, October 2023.
- Texas Property Code Chapter 27, accessed August 28, 2026.
- Texas Property Code Chapter 5, accessed August 28, 2026.
- Texas Water Code Chapter 49, accessed August 28, 2026.
- Consumer Financial Protection Bureau, Questions About Your Loan Estimate?, accessed August 28, 2026.
- CFPB, Regulation Z Section 1026.19, accessed August 28, 2026.
- Texas Department of Insurance, What Is Title Insurance?, updated August 27, 2025.
- TDI, A Home Warranty Is Not Home Insurance, January 26, 2026.
- Federal Trade Commission, Warranties for New Homes, accessed August 28, 2026.
- Texas Comptroller, Property Tax System Basics, accessed August 28, 2026.
Research was current through August 28, 2026. This article provides general real-estate education, not legal, lending, tax, appraisal, inspection, engineering, construction, warranty, insurance, title, survey, utility, HOA, district, or financial advice. Contracts, forms, statutes, rules, lender requirements, title files, property records, and professional standards can change. Verify the exact transaction with the builder, licensed lender, title team, Texas attorney, insurer, inspector, issuing authorities, and other qualified professionals.
About Kaitlin Lovern
Kaitlin Lovern is an 8-time D Magazine Best Realtor with $255M+ in career sales volume. She leads the Kaitlin Lovern Real Estate Team at Real Brokerage LLC and helps North Dallas buyers organize builder, property, financing, inspection, title, and deadline evidence before they make a new-construction decision.
Texas Real Estate license #0634293 | Real Brokerage LLC
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