How Ashton Woods Uses This Clause
Ashton Woods purchase agreements have been documented to include limitation of liability / no monetary damages provisions. The contract may limit the builder's financial exposure for construction defects, delays, or contract breaches. Combined with binding arbitration and the class action waiver, this provision restricts the remedies available to buyers who discover significant post-closing defects. Source: WFTV Action 9 investigation; SEC 10-K risk disclosures.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Ashton Woods's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Mandatory Arbitration
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
Standard Form Contract
This clause appears in Ashton Woods's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Ashton Woods's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Uncertain | Texas courts generally enforce contractual liability limitations but subject them to... |
| Florida | Uncertain | Florida law imposes statutory protections for construction defect claims under Chapter 558 that may... |
| Georgia | Uncertain | Georgia law permits contractual limitation of liability but subjects such clauses to... |
| Arizona | Uncertain | Arizona's Purchaser Dwelling Act provides statutory remedies for construction defects that exist... |
| North Carolina | Uncertain | North Carolina recognizes the implied warranty of habitability for new construction and has... |
| South Carolina | Likely Unenforceable | South Carolina courts have found similar builder contract provisions unconscionable. In Smith v.... |
Related Clauses in Ashton Woods Contracts
This clause often works in combination with other provisions in Ashton Woods's purchase agreements.
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
Together these clauses eliminate both the legal standard (habitability) and the remedy (damages).
The damage cap limits recovery even for items covered by the express warranty.
What Buyers Can Do
- Understand what damages are excluded. The limitation may cover consequential damages, incidental damages, or all monetary damages beyond the purchase price. The scope of the limitation matters significantly.
- Ask whether the limitation applies to construction defects. Some liability limitations are drafted broadly enough to encompass defect claims. Clarify whether defect-related damages are capped or excluded.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Ashton Woods contracts that collectively limit buyer remedies. A contract scan can identify all of them.