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5 Things New Home Builders Won’t Tell You About the New Home Purchase Contracts in Lavon, TX

  • Writer: Nitin Gupta, CRS, REALTOR
    Nitin Gupta, CRS, REALTOR
  • Jun 4
  • 4 min read

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Lavon is growing fast with new communities like Elevon and LakePointe, but builder contracts often contain hidden clauses and risks. Here are 5 things builders don’t tell you—knowledge that could save you thousands and protect your interests during the process.


Lavon’s location near Lake Lavon and proximity to Wylie, Rockwall, and the rest of Collin County makes it an increasingly attractive destination for luxury and first-time homebuyers alike. With builders actively selling in new communities such as Elevon, Traditions at Grand Heritage, and LakePointe, it’s tempting to sign a new home contract quickly—especially when inventory is limited.


But be warned: new construction contracts in Lavon are written by and for the builder, not for you. And unless you have a real estate professional reviewing every detail, you could unknowingly agree to one-sided terms.


1. You’re Not Using the Standard Texas Contract

New home builders in Lavon don’t use the standard TREC (Texas Real Estate Commission) contract used in resale transactions. Instead, you’ll be asked to sign a custom builder contract—written by the builder’s attorney.

  • These contracts often exclude appraisal or financing contingencies

  • You may be required to accept material substitutions without notice

  • Default penalties are typically strict—for the buyer, not the builder

Buyer Tip: Hire a REALTOR® or real estate attorney to review the contract before you sign. Once you’re locked in, options are limited.


2. Builder Incentives Come With Strings Attached

Most Lavon builders offer closing cost credits, design upgrades, or appliance packages—but these only apply if you agree to:

  • Use their preferred lender and title company

  • Close within their timeline, even if it’s inconvenient

  • Waive some negotiation rights in exchange for the discount

Using the builder’s lender may seem easier, but you could pay more in the long run with higher interest rates or fees.

Statistic: In 2024, over 60% of DFW-area new construction buyers paid more in loan costs when using the builder’s “in-house” lender without comparison shopping.


3. Estimated Closing Dates Are Not Guaranteed

You may be told the build will be complete in “6–9 months,” but builder contracts include delay clauses that shift timelines with no penalty.

  • Delays due to weather, labor shortages, or material backorders are protected under force majeure clauses

  • You are financially responsible for extended rent, storage, or rate lock extensions

  • If rates increase during the delay, you’re still expected to close

Buyer Tip: Ask the builder to provide written milestone updates and set expectations for weekly or biweekly communication.


4. Warranty Coverage Isn’t as Strong as You Think

Builders often advertise “10-year warranties,” but they don’t tell you it’s divided into three tiers—and coverage drops off quickly.

Warranty Coverage Type

Duration

Coverage Includes

Workmanship & Materials

1 year

Cosmetic and surface-level items (e.g., paint, trim)

Mechanical Systems

2 years

HVAC, electrical, plumbing systems

Structural Integrity

10 years

Foundation and framing issues (with many conditions)

  • Cosmetic defects must be reported before closing or within 30 days

  • Warranty claims are often handled by third-party vendors, not the builder

  • Repairs are usually made only to code, not necessarily to your satisfaction


5. The Lot May Not Be Yours Until the Day You Close

Many Lavon builders retain ownership of the lot throughout construction.

  • You can’t modify or access the lot freely during the build

  • Builder controls construction access, scheduling, and changes

  • You’re liable for certain changes or cancellations if your financing or life circumstances shift mid-build

Buyer Tip: Ask your REALTOR® to coordinate regular site visits to monitor quality, timeline, and changes.


Final Thought from a Lavon New Construction Expert

“In Lavon, the growth is fast, and so are builder sales. But your builder isn’t going to slow down to explain the legal risks. That’s where I come in—helping you read between the lines before you commit.”— Nitin Gupta, CRS, GRI, REALTOR®

Why Work with a REALTOR® for New Construction in Lavon?

Nitin Gupta is an expert in navigating new builds in Lavon, with deep experience working with builders like Highland Homes, Pulte, Lennar, K. Hovnanian, and more.

He holds:

  • CRS (Certified Residential Specialist)

  • GRI (Graduate, REALTOR® Institute)


Services Offered

  • Builder contract review and negotiation advice

  • Lot selection and upgrade guidance

  • Design center prep and selections

  • Ongoing construction phase support

  • Final walk-through and warranty documentation


Ready to Build Smart in Lavon?

Avoid surprises, protect your investment, and make confident choices from the first meeting to move-in day.

Book your consultation today:https://www.nitinguptadfw.com/contact



Call us at 469-269-6541 for more information about Lavon real estate!



About us: Lavon New Construction Expert Real Estate Agent


As a Top Real Estate Professional in Lavon, I understand the challenges that arise when buying a new construction home. There are over 100 builders in the DFW area. I work with most of the new home builders in Lavon and understand how various builders operate. I am familiar with the options they offer, current incentives and I frequently visit the upcoming communities they are building. I guide my clients through all steps of the new home construction process and aggressively protect their interests in the transaction.


As a holder of top real estate industry certifications and designations like CRS, ABR & GRI, I can offer my clients experience as a Buyer's Agent and REALTOR®, top Industry Customer Service, in-depth, up-to-the-minute and comprehensive market knowledge; honesty, integrity, dedication, and professionalism in my business.


Whether you are a first time buyer in Lavon looking to buy a home in Lavon or whether you are relocating to Lavon from California or moving your entire family from areas like San Francisco, Fremont, Palo Alto, Los Angeles, San Diego in California due to job transfer with your company, I can help you find a new construction home in Lavon. Our relocation team eases the transition - whether you are moving across town or across the globe. We will work with you to find an area that best suits your professional, family and lifestyle needs. We have all the tools you need to help your home search. Whether it is video previews of homes, extended work hours, digital signatures for documents or more, we can make this process as comfortable as possible no matter where you are located.



What is most important to you in your new construction home in Lavon? Send us an email at info@NitinGuptaDFW.com or give us a call at (469) 269-6541 to schedule a no obligation consultation. We’ll give you honest advice about Lavon community that you can use to help make your home buying decision.



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