D.R. Horton and KB Home are both national homebuilders that compete in multiple U.S. markets. Buyers in states where both builders operate — including Texas, Florida, North Carolina, Arizona, Colorado — may find themselves comparing the two when choosing a new construction home.
Both builders use standardized purchase agreements that contain clauses affecting buyer rights and remedies. This comparison examines documented contract patterns, legal history, and key differences based on publicly available information.
The presence of a contract clause does not mean it appears in every agreement from that builder. Contract terms may vary by state, community, and transaction. This comparison is intended to help buyers ask informed questions, not to recommend one builder over the other.
At a Glance
D.R. Horton
KB Home
Market Position
Largest homebuilder in the United States by volume
One of the largest homebuilders in the United States
Ticker
NYSE: DHI
NYSE: KBH
Headquarters
Arlington, Texas
Los Angeles, California
Affiliated Lender
DHI Mortgage
KBHS Home Loans
Documented Clauses
11
12
Documented Cases
8
8
Contract Clause Comparison
The following comparison shows documented contract patterns for each builder. A check mark indicates the clause type has been documented; it does not mean it appears in every contract.
Both D.R. Horton and KB Home include daily closing penalty language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include punch list / post-closing repair limitation language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include independent inspection restriction language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include material substitution without consent language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include restrictive limited warranty language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
KB Home has been documented using preferred lender steering / incentive lock provisions, while D.R. Horton does not have this pattern documented in available contract analyses. This represents a difference in contract risk profiles between the two builders.
KB Home has been documented using warranty voiding conditions provisions, while D.R. Horton does not have this pattern documented in available contract analyses. This represents a difference in contract risk profiles between the two builders.
Both D.R. Horton and KB Home include implied warranty of habitability waiver language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include mandatory binding arbitration language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include class action lawsuit waiver language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include deposit forfeiture / earnest money trap language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
Both D.R. Horton and KB Home include limitation of liability / no monetary damages language in their documented contract patterns. Buyers considering either builder should be aware that this clause type has been identified in purchase agreements from both companies.
D.R. Horton has been documented using monthly payment suppression / hidden costs provisions, while KB Home does not have this pattern documented in available contract analyses. This represents a difference in contract risk profiles between the two builders.
Legal History Comparison
Both builders have documented litigation histories. D.R. Horton has 8 documented cases and investigations; KB Home has 8. The nature and focus of litigation differs between the two builders.
D.R. Horton
Smith v. D.R. Horton (SC Supreme Court, 2016) — Multiple contract provisions found unconscionable
Two active payment suppression lawsuits (Robinson, Santiago — 2025)
$16.1M construction defect settlement in South Carolina
Hunterbrook Media investigation into lending practices
KB Home
Florida Attorney General settlement over deceptive practices
FTC Consent Order violation for deceptive advertising
SEC stock option backdating scandal (CEO Bruce Karatz)
EPA Clean Water Act consent decree
Both D.R. Horton and KB Home have faced litigation related to construction practices and contract terms. Buyers should review the full builder profiles for detailed case information and consider how each builder's legal history may reflect patterns relevant to current purchase agreements.
D.R. Horton is positioned as largest homebuilder in the united states by volume. KB Home is positioned as one of the largest homebuilders in the united states.
Documented Contract Patterns
D.R. Horton has 11 documented clause types in our analysis; KB Home has 12. KB Home has a broader set of documented contract patterns, though this does not necessarily indicate greater risk — it may reflect more extensive public documentation.
Affiliated Lender
D.R. Horton uses DHI Mortgage as its affiliated lender. KB Home uses KBHS Home Loans. Both builders offer incentives to use their affiliated lenders, which may affect financing terms and closing costs.
Geographic Overlap
D.R. Horton operates in 15 states; KB Home operates in 9 states. They share 7 states where buyers may be choosing between the two.
Litigation History
D.R. Horton has 8 documented cases and investigations; KB Home has 8. The nature and severity of litigation differs between the two builders — review the legal history section for details.
What Buyers Should Consider
Both contracts require careful review.
Whether you are buying from D.R. Horton or KB Home, the purchase agreement contains clauses that may limit your rights. Both builders use standardized contracts that favor the builder.
Check your state's specific protections.
The enforceability of many contract clauses depends on state law. A clause that was struck down in one state may be enforceable in another. Review the state-specific analysis for your location.
Compare affiliated lender terms independently.
Both builders offer incentives to use their affiliated lenders. Get independent quotes from at least two outside lenders before committing, and verify that all quoted payments include taxes, insurance, and HOA fees.
Do not assume one builder's contract is inherently safer.
Both builders use similar clause types. The differences are in specific language and implementation. An independent contract review can identify the specific risks in whichever agreement you are considering.
This article is for informational and educational purposes only. It does not constitute legal advice. Consult a licensed attorney in your state before making legal decisions.