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Construction law involves the legal relationship between all parties on a project including, the owners, developers, construction lenders and managers, contractors, architects and engineers. Each relationship is governed by contracts, from the beginning phases of negotiation and conception to final construction and leasing contracts.

5 Things You Need to Know When Constructing a New Home on Your Property:

  1. Investigating your builder to make certain he or she has the experience and skill to construct the home you want is the most important thing you can do to insure a good result.
  2. There are no publicly available forms for new home construction on property owned by the homeowner, other than forms promulgated by the Texas Association of Builders (“TAB”) for use by its members. The TAB construction forms may contain provisions advantageous to the builder and should be reviewed by legal counsel for the buyer before being used.
  3. The forms promulgated by the Texas Real Estate Commission (“TREC”) should be used only when purchasing a newly constructed home on property owned by the builder. They cannot be used to construct a home on property owned by the homeowner.
  4. The home construction contract should address these issues, among others: (a) the homeowner should have input as to when the home is deemed complete; (b) retainage and lien waiver issues; (c) insurance issues, including workers’ compensation insurance; and (d) changes in plans during construction.
  5. Building a new home can be very rewarding but it usually involves some very complicated legal issues and additional risks. What you do not know can really harm you. Consultation with an attorney before you negotiate a contract is advised.

With the ever-changing climate of construction law, regulations, ordinances, and an array of permits and contracts involved, it’s important to have expert legal counsel. The attorneys at Hancock McGill & Bleau have a thorough understanding of each step involved in the process to help ensure you have a successful construction project.


Do you have a question about your next residential or commercial real estate transaction?