How Chesapeake Homes Uses This Clause
Chesapeake Homes purchase agreements have been documented to include mandatory binding arbitration provisions. Disputes must go to private arbitration instead of court. Buyers lose their right to a jury trial and in many cases the ability to appeal an unfavorable decision.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Chesapeake Homes operates in Virginia and North Carolina, the enforceability and practical impact of this clause varies depending on where the home is located.
As a regional builder, Chesapeake Homes' contract templates may be more consistent across its smaller operating footprint than those of national builders, though local addenda may still modify the terms.
Builder-Specific Details
Combined with Habitability Waiver
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Regional Builder Contract
As a regional builder operating in two states, Chesapeake Homes' contract terms may be more uniform across its markets. However, Virginia and North Carolina law differ on key issues, so the practical impact of this clause varies by state.
Standard Form Contract
This clause appears in Chesapeake Homes' 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 Chesapeake Homes's operating states.
| State | Status | Note |
|---|---|---|
| Virginia | Likely Enforceable | Mandatory arbitration clauses in Virginia new construction contracts are generally enforceable under the Federal Arbitration Act and Virginia's Uniform Arbitration Act. Courts apply standard unconscionability analysis. |
| North Carolina | Likely Enforceable | Mandatory arbitration clauses in North Carolina new construction contracts are generally enforceable under the Federal Arbitration Act and the North Carolina Revised Uniform Arbitration Act. |
Related Clauses in Chesapeake Homes Contracts
This clause often works in combination with other provisions in Chesapeake Homes's purchase agreements.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
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.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions that collectively limit buyer remedies. A contract scan can identify all of them.