What California Buyers Need to Know About Texas Builders — Frisco New Construction REALTOR

Relocating from the Golden State to the Lone Star State is a massive transition, especially when it comes to the home-building process. While you might be looking forward to "more house for less money," the rules of the game with Texas builders are significantly different than those in California.

Here is what every California buyer needs to know before signing a contract with a Texas builder.

1. The "Wild West" of Licensing

In California, contractors are heavily regulated by the CSLB (Contractors State License Board). In Texas, the state does not require a state-level license for general home builders.

• The Catch: Practically anyone can call themselves a "builder."

• The Protection: Because oversight is decentralized, it is vital to research a builder’s specific track record in the local DFW or Austin markets. Look for established "Production Builders" (like Highland, Darling, or Toll Brothers) or highly-vetted custom builders with long-standing local ties.

2. Warranty Laws: Express vs. Implied

California’s SB 800 (Right to Repair Act) provides a very specific, consumer-friendly framework for construction defects. Texas is much more "buyer beware."

• No State Mandate: Since 2010, Texas hasn’t mandated a specific builder warranty. Most builders provide a "1-2-10" warranty (1 year for workmanship, 2 years for systems, 10 years for structural).

• The Trend: Recently, some major Texas builders have begun cutting structural warranties from 10 years down to 6 years due to changes in state statutes of repose. Always verify the structural term before signing.

3. The Speed of Construction

If you are used to the 48-month "pre-development to completion" slog in California, the Texas timeline will give you whiplash.

• The 30-Day Rule: Texas law requires local jurisdictions to approve or deny a housing proposal within 30 days.

• Efficiency: A typical production home in Texas can be built in 6 to 10 months, whereas the same project in California might take twice as long due to sequential inspections and CEQA (environmental) hurdles.

4. Soil and Foundations: The "Engineered" Requirement

California builders worry about earthquakes; Texas builders worry about expansive clay soil.

• Foundation Focus: You will see "Post-Tension" slabs everywhere in Texas. These are engineered to move with the shifting soil.

• Maintenance: Unlike in California, where you mostly ignore your foundation, Texas homeowners often have to "water" their foundations during droughts to prevent the clay from shrinking and cracking the slab.

5. MUDs and PIDs: The Hidden Tax

In California, you have high impact fees front-loaded into the price. In Texas, builders use MUDs (Municipal Utility Districts) or PIDs (Public Improvement Districts) to fund infrastructure like pipes and roads.

• The Result: This keeps the initial purchase price lower, but it adds a significant "assessment" to your annual property tax bill for 20-30 years. Always ask for the total effective tax rate (which can range from 2.1% to 3.5% in new areas).

Comparison at a Glance

Feature	California Builders	Texas Builders
Licensing	State-level (CSLB) required	No state license required
Timeline	18–48 months	6–12 months
Regulation	High (CEQA, Title 24)	Lower (Local municipality focus)
Impact Fees	High ($20k–$60k upfront)	Low (Funded via MUD/PID taxes)
Structural Warranty	10 years (Statutory)	6–10 years (Contractual)

Pro-Tip for Californians

Never walk into a model home without your own agent. In Texas, the person in the model home represents the builder only. To have your own advocate, your agent must be with you on the very first visit.

Would you like me to find a list of the top-rated production builders in the North Dallas suburbs for you?

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

FIND A LUXURY HOME IN   FRISCO, TEXAS WITH NITIN GUPTA, BROKER ASSOCIATE, REALTOR®.

When purchasing a luxury home in   Frisco, Texas, it’s essential to consider factors such as location, architectural style, security, and amenities to ensure the home meets both lifestyle and investment needs. By selecting a property in a prestigious neighborhood with numerous amenities and security measures, buyers can ensure they’re making a valuable and rewarding investment in the vibrant Frisco market.

For those looking to invest in luxury homes in Frisco, Texas, Nitin Gupta is an expert real estate professional ready to assist. Known for his extensive experience, market insights, and numerous awards, he is committed to finding his clients the best properties in the area.

Contact Nitin Gupta at 469-269-6541 or send a message today to explore exclusive listings and secure your ideal luxury residence in one of Frisco’s elite communities.