How Century Communities Uses This Clause
Century Communities purchase agreements have been documented to include restrictive limited warranty exclusions provisions. Century Communities provides a one-year workmanship and materials warranty from closing, with structural warranty coverage extending through the applicable state statute of repose or ten years, whichever is shorter. Coverage scope, exclusions, and claim deadlines are defined by the builder. (Source: SEC 10-K, FY 2024) 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 Habitability Waiver
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
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)
Candelas Townhomes Association v. Century Communities
Construction defect lawsuit filed August 11, 2025, alleging widespread problems at the Candelas Townhomes project including roof installation failures, exterior cladding issues, drainage problems, and concrete deterioration resulting in water intrusion and property damage. (Source: Law.com Radar; court records)
Century Communities of Georgia v. Selective Way Insurance Co.
Century Communities sued its insurer after Selective Way refused to defend in an underlying construction defect case involving property damage from pollutants at a Georgia housing development. The Eleventh Circuit ruled that Selective Way had not waived its Pollution Exclusion defense, even though the insurer omitted it from its original denial letter. The decision left Century without insurance coverage for the underlying claims. (Source: Justia; JD Supra)
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 | Express warranty exclusion clauses in Texas new construction contracts are generally enforceable.... |
| Colorado | Uncertain | Warranty exclusion clauses in Colorado new construction contracts face notable constraints.... |
| California | Uncertain | Warranty exclusion clauses in California new construction contracts face significant limitations.... |
| Arizona | Likely Enforceable | Express warranty exclusion clauses in Arizona new construction contracts are generally enforceable.... |
| Nevada | Uncertain | Warranty exclusion clauses in Nevada new construction contracts face significant statutory... |
| Florida | Likely Enforceable | Express warranty exclusion clauses in Florida new construction contracts are generally enforceable.... |
| Georgia | Likely Enforceable | Express warranty exclusion clauses in Georgia new construction contracts are generally enforceable.... |
| North Carolina | Likely Enforceable | Express warranty exclusion clauses in North Carolina new construction contracts are generally... |
| South Carolina | Likely Enforceable | Express warranty exclusion clauses in South Carolina new construction contracts are generally... |
| Tennessee | Likely Enforceable | Express warranty exclusion clauses in Tennessee new construction contracts are generally... |
| Utah | Likely Enforceable | Express warranty exclusion clauses in Utah new construction contracts are generally enforceable.... |
| Washington | Uncertain | Warranty exclusion clauses in Washington new construction contracts face notable constraints.... |
| Oregon | Uncertain | Warranty exclusion clauses in Oregon new construction contracts face constraints under Oregon's... |
| Indiana | Likely Enforceable | Express warranty exclusion clauses in Indiana new construction contracts are generally enforceable.... |
| Ohio | Likely Enforceable | Express warranty exclusion clauses in Ohio new construction contracts are generally enforceable.... |
| Virginia | Likely Enforceable | Express warranty exclusion clauses in Virginia new construction contracts are generally enforceable.... |
| Idaho | Likely Enforceable | Express warranty exclusion clauses in Idaho new construction contracts are generally enforceable.... |
| Alabama | Likely Enforceable | Express warranty exclusion clauses in Alabama new construction contracts are generally enforceable.... |
Related Clauses in Century Communities Contracts
This clause often works in combination with other provisions in Century Communities's purchase agreements.
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
Warranty exclusions narrow coverage while third-party administration adds procedural barriers to filing claims.
Without independent inspection, defects may go undiscovered until after warranty exclusion periods expire.
Substituted materials may not be covered under the same warranty terms as originally specified materials.
What Buyers Can Do
- Read the warranty exclusion list carefully. The exclusions may cover common issues like cosmetic defects, drainage problems, HVAC performance, and landscaping. Know what is not covered before you close.
- Understand warranty durations by category. Structural warranties may last 10 years, systems warranties 2 years, and cosmetic warranties just 1 year. Each category has different coverage and exclusions.
- 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.