Are you about to sign a builder contract on a new home in Arrington? You’re making a big move, and the fine print can shape your budget, timeline, and peace of mind for years. With a few focused checks, you can protect yourself, avoid surprises, and set clear expectations with your builder. This guide walks you through the key contract terms, local Williamson County considerations, and smart negotiation moves so you can move forward with confidence. Let’s dive in.
Identify your contract type
Understanding the type of agreement you’re signing helps you focus on the right clauses.
Spec home purchase agreement
A builder sells you a finished or nearly finished home. You’ll often see a standard purchase contract plus builder addenda. Confirm what options are already included and what remains changeable.
Build-to-order/production home agreement
You pick a plan and options in a community. Price is tied to your selections and allowances with a target completion window. Pay close attention to how upgrades and allowances are priced and finalized.
Custom build or construction contract
You contract directly with the builder to construct a home to your plans. Payments are usually tied to milestones. Clarify scope, sitework responsibilities, and how unforeseen conditions are handled.
Lot + home package
You may buy the lot and home under separate documents. Confirm which agreement governs the home build, the lot, and who guarantees the warranty.
Key sections to read line by line
Parties and roles
Confirm the exact builder entity and seller, especially if a developer owns the lot. Check who provides the warranty and who signs the deed if the lot and house are separate.
Scope of work and specifications
The contract should attach detailed plans, elevations, finish schedules, and exact appliance and fixture models. If a plan is named without full specs, request a complete, integrated specification sheet. Understand the change order process, pricing, approval steps, and timeline impact.
Price, deposits, and allowances
Identify what the contract price includes. Ask whether sitework, driveway, landscaping, and utility hookups are included or considered upgrades. Review the deposit terms, where funds are held, and when deposits are refundable. For allowances, make sure the final pricing method is clear and that unused amounts are credited.
Escalation clauses
Some agreements allow price increases tied to material or labor costs. Look for any caps, notice requirements, and your right to cancel or reselect materials if costs surge.
Construction timeline and delays
Note the estimated start and completion dates. Understand how completion is measured, such as certificate of occupancy or final inspection. Review delay extensions for weather, supply chain, or force majeure. If there is no buyer remedy for late delivery, consider negotiating a clear remedy.
Inspections and punch list
Confirm your right to be on-site and to hire a third-party inspector at milestones like pre-drywall and final. Clarify how the punch list will be created, the timeframe for repairs, and whether any items can be completed after closing with a holdback.
Closing and occupancy
If early occupancy is allowed, understand who is responsible for insurance, utilities, and potential damage before closing. Confirm when the deed transfers, when final payment is due, and how any separate lot sale coordinates with the home closing.
Financing, appraisal, and contingencies
Check for a financing contingency and any appraisal terms. Some builder contracts make you responsible for appraisal shortfalls. If the builder offers incentives, note any required lender or product conditions.
Warranties and post-closing remedies
Many builders follow a common pattern: 1-year workmanship, 2-year systems, and 10-year structural coverage, but details vary. Read what is included, excluded, and how to make a claim within required timelines. Ask whether warranties are transferable if you sell.
Insurance and indemnity
Confirm builder’s insurance during construction and your obligations if you move in early. Watch for broad indemnity clauses that shift excessive risk to you.
Mechanics’ liens and lien waivers
In Tennessee, contractors and subs can file liens if not paid. Your contract should require lien releases at each payment stage and a clear process to deliver clear title at closing. Your title company should protect against unaddressed liens.
Default, termination, and remedies
Look for cure periods for both parties and whether the builder has unilateral termination rights. Check for limits on your damages and whether liquidated damages apply to delays or defaults.
Dispute resolution and venue
Many builder contracts require binding arbitration and limit class actions. Note any requirement for mediation first, the venue, and the time limits for claims.
Covenants, easements, and HOA rules
In new Arrington communities, recorded covenants and architectural standards often apply. Review CC&Rs, design approval processes, dues, and any special assessments before you sign.
Arrington and Williamson County specifics to verify
Permits and inspections
New construction requires permits and inspections through Williamson County Codes & Building Safety. Ask the builder for copies of permit applications, inspection logs, and approvals as they become available.
Septic and well
Many Arrington homes rely on on-site sewage. Confirm septic permits and soil evaluations through the Williamson County Health Department. If there is a private well, ask for the well permit and testing results.
Lot and site conditions
Review floodplain maps, recorded easements, and any slope or conservation restrictions that could affect construction or future additions. Ask about soil and rock conditions that might increase sitework costs and how the contract handles unforeseen conditions.
Title and plat details
Have the title company verify the lot’s legal description, recorded restrictions, and any assessments. If you are buying lot and home separately, confirm marketable title and how the two transactions are sequenced.
Local taxes and proration
Ask how property taxes will be prorated at closing and whether there are any special assessments in the community.
Red flags in builder contracts
- Vague or missing specs, or unlimited “builder may substitute” language.
- Large nonrefundable deposits not held in neutral escrow.
- No completion date or unlimited extensions with no buyer remedy.
- Waiver of inspection rights or limited access to the site.
- No requirement for lien waivers or clear title before closing.
- Warranty terms that are unclear, hard to claim, or exclude key items.
- Open-ended price escalation without caps or clear indices.
Smart negotiation moves
- Define substantial completion and tie final payment to certificates or inspections.
- Add a reasonable liquidated damages or alternative remedy for late delivery.
- Preserve third-party inspection rights at key stages, including pre-drywall.
- Set a punch-list holdback at closing, with a release deadline when items are completed.
- Clarify who covers an appraisal shortfall and whether you can reselect or downgrade finishes to bridge gaps.
- Cap escalation clauses and require written approval for any cost changes.
- Require lien waivers with each progress payment and final unconditional releases at closing.
Your pre-signing checklist
Use this checklist to organize documents and questions before you commit:
- Plans and specs: full drawings, elevations, finish schedules, appliance and fixture models.
- Builder warranty: coverage periods, exclusions, claim process, response times.
- Price and deposits: inclusions vs upgrades, deposit amount, escrow holder, refund conditions.
- Allowances: amounts, selection deadlines, how overages or credits are handled.
- Timeline: estimated start and completion dates, delay extensions, buyer remedies.
- Change orders: request process, pricing method, approval in writing, timeline impact.
- Inspections: your rights to hire a third-party inspector and attend walk-throughs.
- Closing and occupancy: deed transfer timing, temporary occupancy terms, insurance responsibilities.
- Financing: lender requirements, construction-to-permanent options, appraisal language and incentives.
- Title: preliminary title commitment, plat, CC&Rs, easements, and HOA budget or dues.
- Site conditions: soil/percolation tests, septic permit, well permit if applicable, and floodplain status.
- Lien protections: progress-payment lien waivers and final releases.
The professionals you need on your side
- Real estate attorney: to review the contract, explain risk, propose addenda, and advise on Tennessee lien rules.
- Buyer’s agent experienced in new construction: to compare specs, coordinate selections, and negotiate protections.
- Independent construction-phase inspector: for pre-drywall and final inspections, plus targeted rechecks.
- Title company: to manage escrow, issue title insurance, and ensure lien releases.
- Lender skilled in construction-to-permanent loans: to align draws, inspections, and closing.
- Surveyor and septic/environmental pros: to verify boundaries, easements, and on-site systems.
How Mary Brown helps with Arrington new builds
Buying new construction should feel exciting, not stressful. With decades of Williamson County experience, you get hands-on guidance from plan review through punch list. You’ll have support to confirm county permits and septic documentation, compare specifications, coordinate third-party inspections, and negotiate clear remedies for delays or cost changes. You stay in control, informed, and protected at every step.
If you’re planning a new build in Arrington and want an experienced local advocate by your side, reach out to Mary Brown. We’ll help you review your builder contract, align your team, and move forward with confidence.
FAQs
What should I look for first in an Arrington builder contract?
- Start with the scope and specs attachment, the timeline and delay clause, the deposit and escrow terms, and the warranty. These set expectations for quality, timing, payments, and post-closing support.
Is my deposit refundable on a new build in Williamson County?
- It depends on the contract. Focus on where the deposit is held, specific refund conditions, and any deadlines tied to financing or selections before funds become nonrefundable.
Can I hire my own inspector for a new construction home?
- Usually yes, if the contract allows it. Negotiate a clause that permits third-party inspections at pre-drywall and final stages, plus time to address punch-list items before closing.
How are septic systems handled for Arrington homes?
- Many Arrington lots use on-site sewage. Ask for the soil evaluation and septic permit and be sure the plans match the approved system capacity and location.
What if the builder finishes late?
- Check your delay clause for extensions and remedies. If there is no remedy, try to add a fair liquidated damages or holdback to cover extra housing or storage costs.
How do escalation clauses affect my final price?
- They can increase the price if material or labor costs rise. Ask for caps, notice, and the option to reselect materials or adjust allowances before costs change your bottom line.
Who clears mechanics’ liens before closing?
- The builder should provide lien waivers with each draw and final releases at closing, and your title company should confirm clear title so no liens follow you after purchase.
