How Century Communities Uses This Clause
Century Communities purchase agreements have been documented to include affiliated lender incentive steering provisions. Century Communities may offer financial incentives contingent on using its wholly owned mortgage subsidiary, Inspire Home Loans. In 2024, 82% of Century buyers financed through Inspire. Buyers should compare rates and terms with independent lenders before committing. (Source: SEC 10-K, FY 2024)
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. This provision is closely connected to Century Communities's affiliated lending arm, Inspire Home Loans (wholly owned subsidiary); 82% buyer capture rate in 2024 (source: SEC 10-K, FY 2024). 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 Deposit Forfeiture
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
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.
Connection to Inspire Home Loans (wholly owned subsidiary); 82% buyer capture rate in 2024 (source: SEC 10-K, FY 2024)
Century Communities operates Inspire Home Loans (wholly owned subsidiary); 82% buyer capture rate in 2024 (source: SEC 10-K, FY 2024) as an affiliated lending arm. The builder may offer financial incentives for buyers who use this lender, which creates a direct connection between the lending relationship and the terms of the purchase agreement.
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 | Texas generally permits builders to offer incentives conditioned on using a preferred lender,... |
| Colorado | Likely Enforceable | Colorado permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| California | Uncertain | California permits preferred lender arrangements subject to RESPA requirements, but the California... |
| Arizona | Likely Enforceable | Arizona permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Nevada | Likely Enforceable | Nevada permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Florida | Likely Enforceable | Florida permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Georgia | Likely Enforceable | Georgia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| North Carolina | Likely Enforceable | North Carolina permits builders to offer incentives conditioned on using a preferred lender, subject... |
| South Carolina | Likely Enforceable | South Carolina permits builders to offer incentives conditioned on using a preferred lender, subject... |
| Tennessee | Likely Enforceable | Tennessee permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Utah | Likely Enforceable | Utah permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Washington | Uncertain | Washington permits preferred lender arrangements subject to RESPA requirements, but the Washington... |
| Oregon | Uncertain | Oregon permits preferred lender arrangements subject to RESPA requirements, but Oregon's Mortgage... |
| Indiana | Likely Enforceable | Indiana permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Ohio | Likely Enforceable | Ohio permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Virginia | Likely Enforceable | Virginia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Idaho | Likely Enforceable | Idaho permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Alabama | Likely Enforceable | Alabama permits builders to offer incentives conditioned on using a preferred lender, subject to... |
Related Clauses in Century Communities Contracts
This clause often works in combination with other provisions in Century Communities's purchase agreements.
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
What Buyers Can Do
- Compare rates with independent lenders. Inspire Home Loans (wholly owned subsidiary); 82% buyer capture rate in 2024 (source: SEC 10-K, FY 2024) may offer closing cost credits or other incentives, but the overall loan terms may not be the most competitive available.
- Calculate the true cost of lender incentives. A closing cost credit of several thousand dollars may be offset by a higher interest rate over the life of the loan. Run the numbers for your specific situation.
- 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.