Contracts, Insurance, and Warranties: What to Confirm Before You Sign
Before you sign: confirm these contract essentials
A custom home contract is not just paperwork.
It’s the document that determines:
- how you pay
- what you’re actually getting
- how disputes are handled
- what happens when something goes wrong
- and how your warranty works after move-in
If you don’t understand the contract, you’re accepting risk you didn’t price in.
Key contract items to confirm
Scope clarity
- What is included in the base price?
- What is excluded?
- What is allowance-based?
Payment schedule
- Is it tied to milestones (foundation, framing, etc.)?
- How are draws requested and documented?
Change order process
- How are changes approved?
- How are costs and timeline impacts documented?
Timeline expectations
- Is there a projected schedule?
- What happens if delays occur?
Insurance
- Does the builder carry appropriate insurance?
- What coverage exists during construction?
Warranty
- What’s covered?
- For how long?
- What’s the process for submitting warranty items?
Red flags to take seriously
- Vague language around allowances and selections
- No clear change order process
- Unclear warranty terms
- Payment schedule not tied to real progress
- Builder avoids documentation or “does it all verbally”
Copy/paste questions before signing
- “Can you walk me through what is included vs allowance-based?”
- “What are the most common change orders you see?”
- “What insurance coverage do you carry during the build?”
- “What does warranty cover at 30 days, 6 months, 1 year?”
- “Who is my day-to-day contact once construction starts?”
Educational only. Always confirm requirements and costs with your builder, engineer, lender, utility providers, and the applicable city/county/HOA before making decisions.
Want a builder‑ready game plan?
If you’re considering building in the Texas Hill Country, I can help you evaluate land, estimate site costs, and connect you with reputable local builders so you can make decisions with real numbers (not assumptions).
Call/Text: (830) 998‑4412
Email: [email protected]
— Kyle Ritter, REALTOR
