In fast-growing areas like the Dallas–Fort Worth suburbs, a big share of buyer’s-side files are new construction. They look like simple deals, since there’s no seller to negotiate with face to face. But the contract, the timelines and the paperwork work differently from a resale, and most of the surprises come from assuming they don’t.
Here’s what we track for buyer’s agents on Texas new construction.
Builder contracts aren’t TREC resale contracts
TREC promulgates new home contracts for incomplete construction and completed construction, and some builders use them. Many don’t: they use their own contract, drafted by their attorneys, with their own addenda. Common differences:
- No option period, or a very short one
- Limits on inspections, or specific windows for them
- Earnest money and upgrade deposits that may be non-refundable
- Broad rights for the builder to change the completion and closing date
- Remedies and dispute terms that favor the builder
Read the builder’s contract before the buyer signs, and pull every date into the calendar.
Agent registration
Many builders require the buyer’s agent to register the buyer, or be present, on the first visit to the community or sales office. Miss it, and the builder may not honor the commission. Confirm the builder’s policy before the buyer walks in.
Inspections
Even with a new home, buyers should inspect. Common points are:
- Pre-drywall, while the framing, plumbing and electrical are visible
- Final, before the walk-through
Whether and when these are allowed depends on the builder’s contract, so schedule them as soon as the construction timeline allows.
PID, MUD and HOA notices
New master-planned communities are often in a public improvement district (PID) or a municipal utility district (MUD), and almost always have an HOA. The statutory PID and MUD notices apply, and buyers are often surprised by the assessment or tax. Make sure the notices are delivered and signed, and that the buyer understands the ongoing cost. See our guides to Texas PID disclosures and MUD disclosures.
Lender, title and incentives
Builders often offer incentives tied to their preferred lender or title company. That can be a good deal, but it affects the file: whose timelines you’re working to, who orders what, and what happens to the incentive if the buyer finances elsewhere. Note the conditions of any incentive in the file.
Closing dates, walk-throughs and punch lists
- Closing dates move. Keep the lender’s rate lock, the buyer’s lease or sale and the builder’s current schedule in sync. Ask the builder for updates regularly instead of waiting for them.
- Walk-through. The buyer walks the home with the builder’s representative and makes a punch list. Get the list in writing and confirm what will be finished before closing and what after.
- Warranty. Make sure the buyer gets the builder’s warranty documents and knows how to file a claim.
A new construction checklist
On builder files we add:
- Builder contract read; every deadline calendared
- Agent registration confirmed
- Deposits and refundability noted
- Pre-drywall and final inspections scheduled
- PID, MUD and HOA notices delivered and signed
- Incentive conditions noted
- Construction and closing date updates, kept in sync with the lender
- Walk-through, punch list and warranty documents
If new construction is a big part of your business in Dallas–Fort Worth, Houston or anywhere in Texas, we track all of it for you.
