5 Things New Home Builders Won’t Tell You About the New Home Purchase Contracts in Prosper

Buying new construction in Prosper? Builders won’t always disclose everything you need to know about their contracts. Here are five key details they don’t volunteer—each one could cost you thousands or create major surprises during the build.

New construction in Prosper, Texas—especially in luxury communities like Windsong Ranch, Star Trail, and Lakes at Legacy—offers incredible homes, but the builder contracts are written to protect their interests, not yours.

As a luxury new construction specialist, I’ve reviewed hundreds of builder contracts and walked clients through the fine print. Below are five things your builder probably won’t tell you—but you need to know before signing.

1. You Have Very Little Room to Modify the Contract

Most builder contracts are non-negotiable. Unlike resale transactions, you won’t be using the standard Texas Real Estate Commission (TREC) contract. Builders use proprietary contracts written by their lawyers—terms favor them.

• Many clauses limit your ability to back out, even if interest rates spike or job situations change.

• There may be mandatory arbitration clauses, no appraisal contingencies, and limited recourse if they delay construction.

Buyer Tip: Always have your contract reviewed by a real estate attorney or new construction expert before signing.

2. Prices and Incentives Can Change—Even After You Sign

Many buyers assume that once they’ve signed a contract, pricing and incentives are locked in. That’s not always true.

• Base prices, lot premiums, and incentives can change before your contract is fully executed—especially if there’s a long lag between reservation and signing.

• Some builders reserve the right to adjust materials or finishes due to supply shortages, with or without compensation.

• Your final upgrade selections may also lead to pricing changes you didn’t anticipate if you're not fully informed at the design appointment.

3. You May Be Forced to Use Their Preferred Lender or Title Company

While federal law prohibits forcing buyers to use a specific lender or title company, many builders tie incentives—like $20,000 in design credits or closing cost assistance—to using their in-house services.

• These lenders may not offer the best rates or terms.

• Title companies controlled by builders can create conflicts of interest—especially in cases of closing delays or document issues.

• Some builders void incentives if you choose an outside lender or title agency.

Buyer Tip: Always compare loan estimates—even if the builder makes using their lender seem like the only option.

4. Timelines Are Estimates—Not Promises

Builders often give you a closing timeline of 6 to 12 months depending on plan and community—but the fine print usually states they can delay at will.

• Force majeure clauses protect them from supply chain issues, weather, and “market conditions.”

• You may not be compensated for rent, storage, or lost rate locks due to delays.

• They are not obligated to deliver on your timeline, even if delays are internal.

Statistics:

• In 2024, over 45% of new construction homes in North Texas closed 30+ days past the estimated date.

• Nearly 15% of Prosper area luxury buyers reported unexpected delays of 60+ days.

5. Warranty Coverage is Limited and Controlled by the Builder

Most buyers assume new homes come with a “comprehensive” warranty. In truth, builders provide limited warranties with strict conditions—and they often determine what’s covered.

Typical coverage:

• 1 year for materials and workmanship

• 2 years for mechanical systems (HVAC, plumbing, electrical)

• 10 years for major structural defects

But…

• Not all issues are covered unless they meet very specific definitions.

• Cosmetic defects (like tile misalignment or paint flaws) are often excluded unless noted at the final walk.

• You may have limited timeframes to report issues, and they may only repair—not replace—problem areas.

Final Thought from the Expert

Work with a REALTOR® Who Knows New Construction

Nitin Gupta is one of Prosper’s leading new construction experts, holding:

• CRS (Certified Residential Specialist)

• GRI (Graduate, REALTOR® Institute)

• Deep experience with builders like Highland, Southgate, Britton, and Toll Brothers in Prosper’s top communities

Learn more about his certifications:https://www.nitinguptadfw.com/dallas-realtor-designations

Avoid Mistakes That Cost Time, Money, and Peace of Mind

Let Nitin Gupta help you:

• Review and interpret builder contracts

• Evaluate incentives and timelines

• Make strategic upgrade decisions

• Represent your interests at every build stage

Start here:https://www.nitinguptadfw.com/contact

🔗 Learn more: www.NitinGuptaDFW.com📱 Call or text: (469) 269-6541📍 Serving Prosper and the greater North Dallas real estate market

About us: Prosper New Construction Expert Real Estate Agent

As a Top Real Estate Professional in Prosper & Dallas area, I understand the challenges that arise when buying a new construction home. There are over 50 builders in the Dallas area. I work with most of the new home builders in Dallas 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 in Prosper 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 Prosper looking to buy a home in Dallas or Prosper or whether you are relocating to Prosper 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 Prosper. 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 Prosper? 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 Prosper community that you can use to help make your home buying decision.