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TREC Forms 24-20 & 23-20

Texas New Home Contract: Completed vs. Incomplete Construction

Two different new-construction contracts, one wrong choice away from a defect-notice problem.

By Heath Shepard, Texas REALTOR® Updated 2026-08-06

TREC publishes two separate new-home contracts, and using the wrong one is a real risk: New Home Contract (Completed Construction), TREC No. 24-20, and New Home Contract (Incomplete Construction), TREC No. 23-20. Both are dated 05-04-2026 on the form itself; TREC's landing pages list an Effective Date of 07/01/2026 for both. 24-20 replaces TREC No. 24-19; 23-20 replaces TREC No. 23-19.

Which one applies

TREC's landing pages draw the line directly: 24-20 "is used for new homes where the construction has been completed by the builder and no one has previously lived in the home." 23-20 "is used for new homes where the construction has not yet been completed by the builder." Both forms carry the notice: "Not For Use For Condominium Transactions or Closings Prior to Completion of Construction."

What only the Incomplete Construction contract (23-20) has

Because construction isn't finished yet, 23-20 adds an entire section the completed-construction form doesn't need:

The survey provision shifts too: on 23-20, the survey must be made after the Substantial Completion Date, rather than tied to the Effective Date the way it is on 24-20 and most other TREC contracts.

The casualty-loss extension window is different

Both forms let the buyer terminate, extend, or accept the property with an insurance credit if a casualty loss can't be remedied by the Closing Date. But the extension caps differ: 24-20 caps the extension at 15 days; 23-20 caps it at 45 days. That's consistent with 23-20 covering a property that isn't finished yet.

What both forms share

24-20 only: lender-required repairs and treatments. This termination trigger appears solely on the Completed Construction contract, 24-20 (¶7E) — it is not in 23-20's Paragraph 7 at all. On 24-20, neither party is obligated to pay for lender-required repairs (including wood-destroying-insect treatment) unless they agree in writing; if they don't agree, the contract terminates and earnest money is refunded, and if the cost of lender-required repairs exceeds 5% of the Sales Price, the buyer may terminate and get earnest money back. Agents working an Incomplete Construction deal under 23-20 do not have this protection.
The construction-defect notice on both forms. Both 24-20 and 23-20 print the same warning near the signature block: the contract is subject to Chapter 27 of the Texas Property Code, and if there's a construction-defect complaint that hasn't been corrected as required, the buyer must give the contractor written notice by certified mail — referencing Chapter 27 and Section 27.004 — no later than the 60th day before filing suit or initiating arbitration.

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Frequently asked

What's the difference between TREC 24-20 and TREC 23-20? +
24-20 (Completed Construction) is for new homes where construction is already finished and no one has lived in the home. 23-20 (Incomplete Construction) is for new homes still being built, and adds Construction Documents, Cost Adjustments, Buyer's Selections, and Completion provisions that 24-20 doesn't need.
Can either New Home Contract be used for a condo? +
No. Both forms carry the same notice: "Not For Use For Condominium Transactions or Closings Prior to Completion of Construction."
What extra sections does the Incomplete Construction contract (23-20) have? +
Construction Documents (¶7B), Cost Adjustments (¶7C), Buyer's Selections (¶7D), and Completion (¶7E) — none of which appear on the Completed Construction contract (24-20), since that home is already finished.
How long can the Closing Date be extended for a casualty loss under each contract? +
Up to 15 days under 24-20 (Completed Construction) and up to 45 days under 23-20 (Incomplete Construction).
What is the Chapter 27 construction-defect notice on TREC's New Home Contracts? +
Both forms print a notice that the contract is subject to Chapter 27 of the Texas Property Code, and that a buyer with an uncorrected construction-defect complaint must give the contractor written notice by certified mail, referencing Chapter 27 and Section 27.004, no later than the 60th day before filing suit or initiating arbitration.