How Century Communities Uses This Clause
Century Communities purchase agreements have been documented to include limitation of liability / no monetary damages provisions. The contract may cap the builder's total liability or limit the types of damages a buyer can recover, potentially excluding consequential, incidental, or punitive damages. This can leave buyers without a meaningful remedy for significant defects. This clause has been the subject of litigation, including HOA v. Century Communities (Aurora, CO) — $19.48M Arbitration Award.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Century Communities operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Century Communities'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.
Standardized Across Markets
Century Communities's scale means contract templates are largely standardized across its operations. This clause identified in one state's contract is likely present in other states' contracts, though local addenda may modify the terms.
Standard Form Contract
This clause appears in Century Communities'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.
Legal History
The following cases involve Century Communities's use of this clause type.
HOA v. Century Communities (Aurora, CO) — $19.48M Arbitration Award
An 82-unit townhome community association in Aurora, Colorado was awarded $19.48 million against Century Communities after a 17-day arbitration. The arbitrator found Century liable for breaching the duty to construct with reasonable care. Defects included leaks, foundation movement, structural framing problems, drainage issues, and fire code violations. The award is believed to be among the largest construction defect arbitration awards in Colorado. (Source: Burg Simpson law firm; Law Week Colorado)
Century Communities Inc. LLC v. Secretary of Labor
The D.C. Circuit upheld an OSHA citation against Century Communities as a controlling employer after a 2016 incident at a residential construction site in Alpharetta, Georgia, where a subcontractor operated a crane within twenty feet of live overhead power lines. The resulting electrical arc flash seriously injured two workers, one of whom later died. OSHA assessed a $12,675 penalty. The court affirmed Century's liability under the Multi-Employer Worksite Policy. (Source: FindLaw; OSHA)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Century Communities's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Uncertain | Texas courts generally enforce contractual liability limitations but subject them to... |
| Colorado | Likely Unenforceable | Colorado's Construction Defect Action Reform Act (CDARA) and the Homeowner Protection Act of 2007... |
| California | Likely Unenforceable | California provides strong statutory protections for homebuyers under the Right to Repair Act (SB... |
| Arizona | Uncertain | Arizona's Purchaser Dwelling Act provides statutory remedies for construction defects that exist... |
| Nevada | Likely Unenforceable | Nevada has among the strongest statutory protections for new home buyers in the nation. NRS Chapter... |
| 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... |
| 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.... |
| Tennessee | Uncertain | Tennessee recognizes the implied warranty of habitability and has consumer protection statutes that... |
| Utah | Uncertain | Utah has specific construction defect statutes that provide mandatory pre-litigation procedures.... |
| Washington | Likely Unenforceable | Washington has strong statutory protections for homebuyers under the Washington Building Code Act... |
| Oregon | Likely Unenforceable | Oregon has strong statutory protections under the Oregon Unlawful Trade Practices Act and recognizes... |
| Indiana | Uncertain | Indiana recognizes the implied warranty of habitability and has a specific statute addressing... |
| Ohio | Uncertain | Ohio recognizes the implied warranty of habitability and has consumer protection statutes that may... |
| Virginia | Uncertain | Virginia generally enforces contractual liability limitations but recognizes the implied warranty of... |
| Idaho | Uncertain | Idaho recognizes the implied warranty of habitability and has consumer protection statutes. Idaho... |
| Alabama | Uncertain | Alabama recognizes the implied warranty of habitability for new construction and has consumer... |
Related Clauses in Century Communities Contracts
This clause often works in combination with other provisions in Century Communities'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.
- Review the HOA case. The HOA v. Century Communities (Aurora, CO) — $19.48M Arbitration Award ruling may be relevant to your situation. If you are buying a Century Communities home in a state with similar legal protections, this precedent could affect the enforceability of this clause.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Century Communities contracts that collectively limit buyer remedies. A contract scan can identify all of them.