How Century Communities Uses This Clause
Century Communities purchase agreements have been documented to include mandatory binding arbitration provisions. Century Communities' terms require that all disputes be resolved through binding arbitration under JAMS Streamlined Arbitration Rules, initiated by written notice. The Federal Arbitration Act governs enforceability, and the arbitrator's decision is final and binding. This eliminates the right to a jury trial and typically limits discovery. (Source: Century Communities Terms of Use, centurycommunities.com) 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 Class Action Waiver
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
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)
Condominium Association v. Century Communities (Broomfield, CO) — $8.5M Award
A 98-home condominium association in Broomfield, Colorado was awarded more than $8.5 million against Century Communities following a three-week arbitration. Defects included structural problems, improper balcony construction, failing brick facade, concrete defects, and waterproofing failures. The award exceeded the amount Century had offered to settle. (Source: Hearn & Fleener LLC; Law Week Colorado)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Century Communities's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Mandatory arbitration clauses in Texas new construction contracts are likely enforceable. Texas has... |
| Colorado | Likely Enforceable | Mandatory arbitration clauses in Colorado new construction contracts are likely enforceable.... |
| California | Uncertain | The enforceability of mandatory arbitration clauses in California new construction contracts is... |
| Arizona | Likely Enforceable | Mandatory arbitration clauses in Arizona new construction contracts are likely enforceable. Arizona... |
| Nevada | Likely Enforceable | Mandatory arbitration clauses in Nevada new construction contracts are likely enforceable. Nevada... |
| Florida | Likely Enforceable | Mandatory arbitration clauses in Florida new construction contracts are likely enforceable. Florida... |
| Georgia | Likely Enforceable | Mandatory arbitration clauses in Georgia new construction contracts are likely enforceable. Georgia... |
| North Carolina | Likely Enforceable | Mandatory arbitration clauses in North Carolina new construction contracts are likely enforceable.... |
| South Carolina | Uncertain | The enforceability of mandatory arbitration clauses in South Carolina new construction contracts is... |
| Tennessee | Likely Enforceable | Mandatory arbitration clauses in Tennessee new construction contracts are likely enforceable.... |
| Utah | Likely Enforceable | Mandatory arbitration clauses in Utah new construction contracts are likely enforceable. Utah has... |
| Washington | Likely Enforceable | Mandatory arbitration clauses in Washington new construction contracts are likely enforceable.... |
| Oregon | Likely Enforceable | Mandatory arbitration clauses in Oregon new construction contracts are likely enforceable. Oregon... |
| Indiana | Likely Enforceable | Mandatory arbitration clauses in Indiana new construction contracts are likely enforceable. Indiana... |
| Ohio | Likely Enforceable | Mandatory arbitration clauses in Ohio new construction contracts are likely enforceable. Ohio has... |
| Virginia | Likely Enforceable | Mandatory arbitration clauses in Virginia new construction contracts are likely enforceable.... |
| Idaho | Likely Enforceable | Mandatory arbitration clauses in Idaho new construction contracts are likely enforceable. Idaho has... |
| Alabama | Likely Enforceable | Mandatory arbitration clauses in Alabama new construction contracts are likely enforceable. While... |
Related Clauses in Century Communities Contracts
This clause often works in combination with other provisions in Century Communities's purchase agreements.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Warranty disputes with third-party administrators may also be subject to mandatory arbitration.
What Buyers Can Do
- Understand the arbitration process before signing. Review which arbitration provider is specified, who selects the arbitrator, and whether you have any right to appeal. These details significantly affect the fairness of the process.
- Research the arbitration provider's track record. The specified arbitration provider may have a history with builder disputes. Understanding the provider's procedures and typical outcomes can help you prepare.
- 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.