5 Things New Home Builders Won’t Tell You About the New Home Purchase Contracts in Lavon, TX
- Nitin Gupta, CRS, REALTOR

- Jun 4
- 4 min read

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.




