Buying a new construction home in Texas feels like a fresh start — and in many ways it is. But "new" does not mean "problem-free forever." Builders typically offer a tiered warranty program that gives you specific protections for a defined period. Knowing exactly what those tiers cover — and where the gaps are — can save you thousands of dollars and a lot of frustration down the road.
The Standard 1-2-10 Warranty Structure
Most Texas production builders follow a tiered warranty structure commonly called the 1-2-10 warranty. The numbers refer to the years of coverage at each tier:
- 1 year — Workmanship: Covers cosmetic and labor defects such as drywall cracks, paint issues, trim gaps, caulking failures, and door/window operation problems.
- 2 years — Systems: Covers mechanical systems including HVAC, plumbing, and electrical wiring defects.
- 10 years — Structural: Covers load-bearing elements — the foundation, framing, and structural components that affect the integrity of the home.
These tiers are standard across most large DFW builders, though the specific language, claim procedures, and exclusions vary. Always read the builder's warranty booklet before you close, not after.
What the 1-Year Workmanship Warranty Typically Covers
The first-year tier is the broadest in terms of item count but the soonest to expire. It generally includes:
- Drywall nail pops, cracks, and settling seams
- Paint drips, missed spots, and overspray
- Trim that separates or gaps from walls and floors
- Doors and windows that do not latch, seal, or operate correctly
- Grout cracking in tile work
- Caulking around tubs, showers, and exterior penetrations
What it typically does not cover: normal settling shrinkage (some builders carve this out specifically), damage you or your occupants cause, cosmetic issues you did not report within the first several months, and landscaping or grading problems that fall outside the builder's scope.
What the 2-Year Systems Warranty Typically Covers
The second tier covers the mechanical backbone of your home. Common inclusions are:
- HVAC equipment and ductwork defects (not normal filter maintenance)
- Plumbing leaks and faulty pipe connections
- Electrical panel defects, wiring faults, and outlet or switch malfunctions
- Water heater installation defects
Common exclusions include: damage from deferred maintenance, appliance failures (refrigerators, dishwashers, and ranges typically carry separate manufacturer warranties), and issues caused by third-party modifications you make to the systems.
In the DFW market, HVAC is the most common 2-year claim. North Texas temperature swings are extreme, and new systems under load often reveal installation defects within the first two summers. If your AC is short-cycling or your utility bills seem high from the start, submit a warranty claim in writing immediately rather than waiting.
What the 10-Year Structural Warranty Typically Covers
The structural tier is the narrowest in scope but the longest in duration. It covers defects in the load-bearing elements of the home:
- Foundation failures beyond normal settling
- Structural framing defects
- Roof framing issues
Texas expansive clay soils are notoriously hard on foundations. A legitimate structural warranty can be valuable — but builders often define "structural defect" narrowly. Cracks alone may not qualify; the crack typically must cause the structure to be uninhabitable or unsafe under the builder's definition. Read the language carefully.
What Builder Warranties Almost Never Cover
Even with a strong warranty package, buyers are frequently surprised by what is excluded. Common exclusions across most Texas builder warranties include:
- Normal wear and tear — paint fading, carpet wear, and fixture aging
- Landscaping and drainage outside the defined grading period (often 1 year but limited in scope)
- Appliances — covered separately by manufacturer warranties, typically 1 year
- Damage caused by the homeowner — modifications, deferred maintenance, or misuse
- Acts of nature — storm damage, flooding, and hail are homeowner's insurance claims, not warranty claims
- HOA-controlled areas — fences, shared walls, or common elements managed by the association
How to Work With a Buyer's Agent on New Construction
Builder warranty terms are part of the negotiation and review process that happens before and at closing — not after. A licensed Texas REALTOR® representing you as a buyer's agent (under a written buyer representation agreement as required by TREC) can help you review the warranty documentation, flag unusual exclusions, and advise on your walkthrough timing.
Because most DFW builders require you to register your agent on your very first visit to the community, timing matters. If you walk into a model home without registering your agent first, you may lose the ability to have representation on that transaction. Registration is typically free and takes only a few minutes.
Buyers who use EXL Group as their buyer's agent on new construction may be eligible for an estimated closing credit of up to approximately 2% of the purchase price, subject to lender approval, builder policy, and actual commission received. TREC #9015220.
Understanding your builder's warranty before you close — not after your first issue appears — is one of the most practical steps you can take as a new construction buyer in Texas. The 1-2-10 structure gives you real protection, but only if you know the tiers, document problems early, and submit claims in writing before each window closes.