D.R. Horton and Toll Brothers are both national homebuilders that compete in multiple U.S. markets. Buyers in states where both builders operate — including Texas, Florida, South Carolina, North Carolina, Arizona — 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
Toll Brothers
Market Position
Largest homebuilder in the United States by volume
Largest luxury homebuilder in the United States
Ticker
NYSE: DHI
NYSE: TOL
Headquarters
Arlington, Texas
Fort Washington, Pennsylvania
Affiliated Lender
DHI Mortgage
TBI Mortgage
Documented Clauses
11
10
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.
D.R. Horton has been documented using daily closing penalty provisions, while Toll Brothers 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 Toll Brothers 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 Toll Brothers 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 Toll Brothers 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 Toll Brothers 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.
Toll Brothers 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.
Toll Brothers 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.
D.R. Horton has been documented using implied warranty of habitability waiver provisions, while Toll Brothers 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 Toll Brothers 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 Toll Brothers 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 Toll Brothers 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 Toll Brothers 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 Toll Brothers 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; Toll Brothers 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
Toll Brothers
Noohi v. Toll Bros. — securities fraud class action
United States v. Toll Brothers (Fair Housing Act violations)
EPA Clean Water Act settlement
Jupiter Country Club construction defect litigation
Both D.R. Horton and Toll Brothers 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. Toll Brothers is positioned as largest luxury homebuilder in the united states.
Documented Contract Patterns
D.R. Horton has 11 documented clause types in our analysis; Toll Brothers has 10. D.R. Horton 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. Toll Brothers uses TBI Mortgage. 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; Toll Brothers operates in 24 states. They share 12 states where buyers may be choosing between the two.
Litigation History
D.R. Horton has 8 documented cases and investigations; Toll Brothers 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 Toll Brothers, 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.