1031 CA to TX, purchase to be built home

[Nancy Brewer]

We had several rentals in CA and downsized and moved to TX to be closer to our daughter. We have one house left that has been rented for about 16 years. The house is large and will be easy to sell in the current market. Our intention is to use a 1031 on it for like kind, a new house to be built, here in booming Conroe TX. We currently live in a house here that we own free and clear. Our plan is to rent our current home and move up to the yet to be built house. 

That being said we are wanting to check with experts on if this will work, if:

1. We are living in the house they we funded by the 1031.
2. Will builders accept the earnest money and the funds from the exchange? Do they normally have QI who help buyers, or should we find our own? Builders are national companies.

3. Will the CA Claw apply? Can someone explain that for me?

4. What if construction is held up? How does that work if it runs over that 180 day time? 

Thank you for your replies!

Nancy