5 Things New Home Builders Won’t Tell You About the New Home Purchase Contracts in Princeton, TX
- Nitin Gupta, CRS, REALTOR
- 2 days ago
- 4 min read
Buying new construction in Princeton may seem straightforward—but builder contracts often contain terms that favor them, not you. Here are 5 hidden truths about new home contracts that could impact your budget, timeline, and future peace of mind.
With rapid growth in communities like Arcadia Farms, Whitewing Trails, and Forest Grove, Princeton has become a hot spot for first-time and move-up buyers seeking affordable new homes in Collin County.
But if you’re considering building with a national or regional builder here, beware: their contract is not written for your protection. It’s a builder-drafted legal document that prioritizes their interests at every step.
1. You Can’t Use the Standard TREC Contract
In most resale home purchases, buyers and sellers use the Texas Real Estate Commission (TREC) contract, which offers protections for both parties.
But when buying from a builder in Princeton, you’ll sign a custom contract written by the builder’s legal team.
This contract often removes typical contingencies like appraisal and financing protection
There are strict deadlines and penalties for missed deposits—but not for delays on the builder’s end
You may be waiving rights unknowingly by signing without proper review
Buyer Tip: Don’t sign until a real estate professional or attorney has walked you through it.
2. Incentives Disappear if You Don't Use Their Lender and Title Company
Many Princeton builders offer incentives—like $10,000 toward closing costs or design upgrades—but only if you use their preferred lender and title company.
These services are often tied to the builder financially
Their lender may not give you the most competitive rate or fees
Their title company may not represent you well in a dispute
Stat: Nearly 70% of new construction buyers in Collin County use a builder’s in-house lender or title company—often without shopping rates or reading the terms.
3. Delivery Timelines Are Flexible—But Not In Your Favor
Builders give estimated delivery dates (usually 6–10 months out), but the fine print allows them to delay the project without penalty.
You may face extended rent or mortgage overlap
Builders may not honor your interest rate lock if delays occur
They’re protected by force majeure and supply chain clauses
Buyer Tip: Ask for weekly build updates and request milestone check-ins at each phase (foundation, framing, pre-drywall, final).
4. You Have Little Say in How Issues Are Handled
Warranty issues, closing problems, or miscommunications during the build? The builder contract gives them the final say.
Most use third-party warranty providers with limited responsiveness
You often waive your right to sue and must use arbitration or mediation
Cosmetic issues are often dismissed unless caught before closing
Typical Warranty Coverage
1 Year: Workmanship and materials
2 Years: HVAC, plumbing, and electrical systems
10 Years: Major structural components
But if your tile grout cracks or your cabinets are misaligned? You may be stuck with it if not documented at the final walk.
5. You May Not Own the Lot Until Closing
Builders often keep ownership of the land until your home is 100% built and closed. That means:
You can’t make early exterior changes or landscaping
You may not have legal grounds to enter the property during construction
You can’t list it or market it for resale if plans change before closing
Buyer Tip: Make sure your agent confirms lot transfer timing and what access you’re allowed during construction.
Final Advice from a Princeton New Construction Specialist
“Builder contracts can be filled with hidden risks—especially for first-time buyers. My job is to protect you from costly surprises and make sure the fine print doesn’t become a financial trap.”— Nitin Gupta, CRS, GRI, REALTOR®
Work with a REALTOR® Who Knows Princeton Builders
Nitin Gupta is a trusted new construction expert who has helped clients buy and build in Princeton with builders like DR Horton, Lennar, Pulte, and Highland Homes. He holds:
CRS (Certified Residential Specialist)
GRI (Graduate, REALTOR® Institute)
Learn more about his certifications:https://www.nitinguptadfw.com/dallas-realtor-designations
Ready to Build Smart in Princeton?
Nitin can help you:
Review and explain builder contracts
Coordinate independent inspections
Navigate upgrades, pricing, and deadlines
Advocate for your interests through closing
Get started here:https://www.nitinguptadfw.com/contact
Contact us at 469-269-6541 today!
About us: How We Help You Buy Your First Home in Princeton - Princeton Real Estate Agent
You need a top Princeton real estate agent & team to work hard for you and guide you through the home buying process. Our Realtors are devoted to helping our clients find the right home, at the best price, and with a minimal amount of stress and disruption to their lives. Our goal is to find the home in Princeton that will make you happy and successful in real estate ownership.
When you hire us to help you buy your first home in Princeton area, we want to know what you want and how much you can afford. Your Top Princeton Real Estate Agent will find a way to merge these two priorities and find a residence you will enjoy owning for years. Starting with the first interview determining your requirements to the moment we present the keys to your first home, your Realtor will walk you through the complicated home-buying process. We will share our expertise to educate you on the market and the process of buying a home, so you will be prepared to make the best choices and feel comfortable with all of your decisions. Please contact us to find out more about how we can make the home buying process easier for you.
