Thinking about building in Thompson’s Station and wondering how to protect yourself from delays, budget creep, or a surprise appraisal shortfall? You are not alone. Builder contracts often favor the builder, and small details can have big consequences for your move date and monthly payment. In this guide, you will learn the smart contingencies that keep your new build on track, on budget, and on your terms. Let’s dive in.
Thompson’s Station new-build reality
Thompson’s Station and greater Williamson County continue to see steady new construction, which means you will likely encounter builder form contracts with tight timelines and staged deposits. These contracts typically limit buyer remedies and leave little room for delays or cost overruns. The good news is you can negotiate clear, buyer-friendly contingencies that set expectations and protect your investment. Focus on financing, appraisal timing, completion and CO, allowances, rate locks, inspections, and title and liens.
Financing contingency that works
What this protects
A financing contingency protects your deposit if your loan is denied and sets realistic milestones for underwriting. Many builder contracts replace it with a vague “credit approval” clause that does not equal a true loan commitment. You want specific deadlines and a clean termination right if the loan cannot be obtained despite your timely effort.
Buyer-friendly structure
- Apply for your mortgage within 7 to 14 days after contract execution.
- Require a written loan commitment or clear-to-close within 30 to 45 days, adjusted for construction-to-permanent products if needed.
- Include a termination right with a full deposit refund if the commitment is not issued by the deadline.
- Require the builder to promptly provide plans, specifications, and any documents your lender requests.
- Define approval precisely as a written unconditional commitment without outstanding conditions.
Negotiation tips
If the builder resists a full contingency, negotiate a limited refund period tied to lender denial. Keep all dates realistic for your lender’s process. Put every definition and deadline in writing so there is no ambiguity.
Appraisal contingency and timing
Why timing matters
With new construction, the appraisal often happens late, and costly upgrades may not be fully reflected in comparable sales. If the appraisal comes in low, your loan approval and cash-to-close can be at risk. Time your appraisal window so you have room to solve issues before closing.
Buyer options on shortfall
- Early documentation: require a full specs package and itemized upgrade list to be delivered to your lender early.
- Shortfall remedies: if value is below contract price, give yourself options to terminate with a deposit refund, reduce the price to appraised value, bring cash to cover the gap, or receive a builder credit up to an agreed cap.
- Resolution window: require appraisal results at least 10 to 14 days before closing to allow time for a decision.
Practical tips
If you plan significant upgrades, ask the builder for detailed cost documentation so the appraiser can consider them. Tie any seller credit or price adjustment to a clear shortfall formula and deadline for your election.
Completion date and CO
Set a clear target
Your move-in, loan rate, and relocation plans depend on a defined completion window. Negotiate a target completion and closing date with a maximum build period. State that the builder will use reasonable efforts to meet the target and include a specific outside date.
Remedies for delay
If the home is not complete by the agreed date, include a remedy. Options include a modest daily credit up to a cap, a rent credit, or a right to terminate after a set delay such as 60 to 90 days. If the builder resists damages, trade for a shorter, automatic termination right at a defined delay threshold.
CO before closing
Require a valid Certificate of Occupancy or final municipal sign-off before closing or occupancy. If temporary occupancy is allowed by local code, add safeguards such as an escrow holdback until the final approval is issued. Clarify that possession transfers only after CO and that any code issues will be corrected before you move in.
Allowances and change orders
Build a clear allowances sheet
Allowances control costs for items like cabinets, countertops, lighting, and HVAC. Require an itemized schedule that lists each allowance, the dollar amount, and what is included. Set realistic selection deadlines and require written notice 10 to 14 days before each deadline.
Control overages
Require your written approval for any change that increases price beyond a small threshold such as 500 to 1,000 dollars. For minor overages below that threshold, allow an automatic charge with written notice. Confirm that selection delays not caused by you trigger reasonable extensions or a defined default option with credits.
Accounting at closing
Before or at closing, require a full reconciliation. If the actual cost is less than the allowance, you receive a credit. If it is over, you pay the itemized difference and receive receipts. Request lien waivers for change orders to reduce subcontractor lien risk.
Rate locks and interest risk
Align the lock window
Interest rates can move during a 6 to 9 month build. Align your rate-lock window with the estimated completion date and add a buffer. If a builder delay pushes closing beyond your lock, negotiate a builder credit to cover a reasonable re-lock cost or a right to terminate if the re-lock cost exceeds an agreed threshold.
Add a rate tolerance
Consider a rate contingency that allows you to cancel and receive a full deposit refund if rates rise more than a defined amount, such as 0.5 to 1.0 percent from contract date, provided you act within a set time. This protects your monthly payment plan if the market shifts materially.
Coordinate with your lender
Use a lender experienced in new construction and construction-to-permanent loans. Require the builder to cooperate with inspections and draws so you do not miss lock deadlines. Keep all parties aligned on dates and documentation.
Inspections, punch list, and warranty
Inspection milestones
Reserve the right to independent inspections at foundation, pre-drywall, pre-final, and final. Require the builder to give you 7 to 10 days’ notice before each milestone so your inspector can schedule. Defects should be corrected before closing or addressed with an escrow holdback if timing is tight.
Punch list mechanics
Schedule a final walk-through and create a written punch list before closing. Set a completion timeline, such as 30 days after closing, for outstanding items. If items are not completed, use an escrow or holdback to ensure performance.
Warranty clarity
Request a written new-home warranty with clearly defined terms, such as a 1 year workmanship, 2 years systems, and 10 years structural structure. Confirm transferability and how to submit claims. Keep all warranty booklets, contacts, and service timelines in your closing file.
Title, HOA, permits, and liens
Deliver clear title
Require the builder to deliver clear title at closing and to cure any defects before you sign. If the property is part of an HOA, request the governing documents and fee schedule early. Review architectural guidelines to confirm your selections align with rules.
Verify permits and approvals
Before closing, require copies of required permits and the final municipal inspections or CO. Tie closing to receipt of these approvals so you do not inherit permit or inspection gaps. This is especially important for utilities, septic, or specialty features that require separate sign-offs.
Secure lien waivers
At closing, obtain conditional lien waivers from the builder and major subcontractors, with unconditional waivers upon final payment. If the builder cannot provide them, use an escrow holdback until they are delivered. This protects you from post-closing lien claims.
Sample new-build timeline
- Day 0: Execute contract and pay initial deposit. Confirm refund triggers in writing.
- Days 1 to 14: Submit your full loan application. Receive the selection schedule from the builder.
- Days 14 to 30: Complete major design selections or request a documented extension.
- Days 30 to 45: Obtain written loan commitment or initial underwriting approval for construction-to-permanent loans. If approval is not issued, you may terminate and receive a refund.
- Throughout: Conduct inspections at foundation, pre-drywall, pre-final, and final. Builder to provide 7 to 10 days’ notice before each milestone.
- 30 to 14 days before closing: Appraisal is completed and lender issues clear-to-close.
- Target closing: Close only after the Certificate of Occupancy or final municipal sign-off is issued.
Red flags in builder contracts
- Non-refundable deposits without clear refund triggers.
- Extremely short financing or inspection windows.
- Missing or vague allowances with no reconciliation.
- No right to independent inspections or limited access.
- No CO requirement before closing or occupancy.
- Weak warranty language or one-sided arbitration terms.
- Builder can extend closing indefinitely without buyer remedies.
How we help buyers
You deserve a smooth path from contract to closing, especially on a custom or high-spec build. With deep builder-side experience in Williamson County, we help you structure buyer-first contingencies, manage selections, and keep financing and appraisals on track. We coordinate with your lender, monitor construction milestones, and document every promise so you can focus on your move.
If you are comparing builder contracts in Thompson’s Station, we will review your draft, flag risks, and propose clean language that fits your timeline and budget. When the right protections are in place, you get the home you want without costly surprises. Ready to talk through your plan? Connect with Susan Gregory to get started.
FAQs
What contingencies protect Thompson’s Station new-build buyers?
- Focus on financing approval, appraisal timing and remedies, completion and CO, allowances and change orders, rate-lock protections, inspection milestones, and clear title with lien waivers.
How soon should I lock my mortgage rate for a new build?
- Align your lock with the estimated completion date plus a buffer, and add a clause that covers re-lock costs or a termination right if builder delays push you past the lock window.
What if my new-build appraisal comes in low?
- Negotiate options to terminate with a refund, reduce the price, bring cash to cover the gap, or receive a builder credit up to a defined cap, with results delivered 10 to 14 days before closing.
Should I close without a Certificate of Occupancy?
- Require a CO or final municipal sign-off before closing or occupancy; if temporary occupancy is allowed, add protections such as an escrow holdback until the final approval is issued.
How do I keep allowances from blowing my budget?
- Use an itemized allowance schedule, require written approval for overages above a small threshold, and reconcile all allowances with receipts before or at closing.
What inspections should I include in a new-construction contract?
- Reserve independent inspections at foundation, pre-drywall, pre-final, and final, with 7 to 10 days’ notice from the builder and defined timelines for corrections or escrow holdbacks.
