Building a home or purchasing vacant land in Texas can be rewarding—but it carries legal, financial, and construction risks that many buyers underestimate. Before you sign a land contract or break ground, you need to understand Texas building codes, FHA requirements, and your rights as a buyer.
Texas Building Codes and HUD Minimum Property Standards (MPS)
In Texas, residential construction typically follows locally adopted versions of the International Residential Code (IRC). However, when a home is financed using an FHA-insured mortgage, it must also meet the Minimum Property Standards (MPS) enforced by U.S. Department of Housing and Urban Development.
While standard building codes focus on safety and structure, HUD Minimum Property Standards go further, addressing long-term durability. FHA standards apply minimum requirements to components such as:
- Windows and exterior doors
- Gutters, downspouts, and drainage systems
- Interior finishes and wall coverings
- Cabinets, flooring, and other wear items
These requirements exist to protect the long-term value of the home, which serves as collateral for the FHA loan.
FHA Construction in Areas Without Local Building Codes
Some rural areas of Texas do not have adopted residential building codes. In these cases, FHA requires the home to comply with a nationally recognized model code approved by the appropriate HUD Field Office.
No local code does not mean no oversight. FHA construction standards will still apply, and failure to meet them can delay or derail financing.
Buying Land in Texas: Federal Disclosure Rules Still Apply
If a developer is selling 100 or more unimproved lots across state lines, the sale may fall under the Interstate Land Sales Full Disclosure Act. When applicable, the developer must provide a Property Report before you sign a contract.
This applies whether the land is marketed for:
- Future home construction
- Retirement or second homes
- Recreational or investment purposes
High-pressure sales tactics and promises of appreciation are major red flags.
What a Property Report Must Disclose
A valid Property Report typically includes:
- Access roads and maintenance responsibility
- Utility availability (water, sewer, electric, gas)
- Soil and drainage conditions affecting construction
- Zoning and land-use restrictions
- Liens, mortgages, or encumbrances
- Escrow handling of buyer payments
- When and how legal title will be conveyed
If you did not receive this report before signing, federal law may allow you to cancel the contract for up to two years.
Buyer Contract Rights Under Federal Land Sales Law
When covered by the Act, buyers are entitled to:
- A minimum seven-day cooling-off period
- Clear legal description of the lot
- Notice and time to cure any default
- Limits on seller liquidated damages
- Contractual guarantees for promised roads, utilities, or amenities
These rights cannot be waived, even if the seller pressures you to proceed.
Texas Land Sales Are Not Always Exempt
Some land sales are exempt from federal registration, including:
- Subdivisions under 100 lots
- Lots of 20 acres or more
- Lots with a completed home or a binding two-year build obligation
Exempt does not mean safe. It only means fewer disclosure requirements.
Inspect the Land Before You Build
Never buy land sight unseen. In Texas, issues such as expansive clay soils, floodplain exposure, drainage, and access easements can make a lot unsuitable—or extremely expensive—to build on.
A professional inspection can help identify problems before you commit.
Common Land Sales Red Flags
Be cautious of:
- Guaranteed appreciation claims
- “Buy today or lose it” pressure
- Promised amenities not in the contract
- Delayed deeds or unclear title
- Bait-and-switch pricing
- Missing or late Property Reports
Legitimate land deals withstand scrutiny.
Final Thought for Texas and FHA Buyers
Land purchases and new construction demand more diligence than buying an existing home. Texas codes vary by jurisdiction, FHA standards are strict, and contracts matter more than brochures.
Slow down. Verify everything. And protect yourself before construction begins.
