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Funds retained on your new home purchase

Can you retain a certain amount of your homes sales price from a builder for an extended amount of time in order to make sure their are not any structural deficies with your home that will need to be resolved and only discovered after you occupy and use the homes mechanicals?

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Jan 7, 2020

What you proposed above sounds a lot like how retainage is used throughout the life of a construction project in order to ensure the sound completion of the job. And, to be sure, Texas does not allow for the indefinite withholding of retainage (though, the Texas Property Code's provisions on retainage can be particularly confusing). So, ordinary contractual retainage cannot be withheld for an extended amount of time beyond a project's completion. More on TX retainage here: Texas Retainage Guide and FAQs. Now, with that being said, it may well be possible to include some similar provision in a home purchase agreement. Though, it might be more traditional (and more effective) to instead put sound warranty provisions into the contract. Further, it's also worth noting that there will be an implied warranty of good workmanship in a new build residential project, as well. Meaning, even if there isn't an explicit warranty in the contract (though there should be), the home will still be covered by warranty to some limited degree. Ultimately, though, for more clarity on how best to protect yourself against potential future defects, it'd be helpful to consult with a local Texas construction attorney on the matter - such as one of these Texas Construction Payment Experts. Additionally, these resources seem to contain valuable information: - Building or Renovating a Home? Five Ways to Protect Your Home and Your Investment - New-Home Construction Defects in Texas: Buyer's Rights Against the Builder

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