LGI Homes vs Taylor Morrison

Purchase agreement comparison

Overview

LGI Homes and Taylor Morrison are both national homebuilders that compete in multiple U.S. markets. Buyers in states where both builders operate — including Texas, Florida, Georgia, 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

LGI HomesTaylor Morrison
Market PositionOne of the largest entry-level homebuilders in the United StatesTop-10 national homebuilder
TickerNASDAQ: LGIHNYSE: TMHC
HeadquartersThe Woodlands, TexasScottsdale, Arizona
Affiliated LenderLGI Mortgage SolutionsTaylor Morrison Home Funding
Documented Clauses610
Documented Cases47

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.

LGI Homes:
Taylor Morrison:

Both LGI Homes and Taylor Morrison include preferred lender steering / incentive lock 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.

LGI Homes:
Taylor Morrison:

Both LGI Homes and Taylor Morrison 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.

LGI Homes:
Taylor Morrison:

Taylor Morrison has been documented using restrictive limited warranty provisions, while LGI Homes does not have this pattern documented in available contract analyses. This represents a difference in contract risk profiles between the two builders.

LGI Homes:
Taylor Morrison:

Taylor Morrison has been documented using warranty voiding conditions provisions, while LGI Homes does not have this pattern documented in available contract analyses. This represents a difference in contract risk profiles between the two builders.

LGI Homes:
Taylor Morrison:

Both LGI Homes and Taylor Morrison 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.

LGI Homes:
Taylor Morrison:

Both LGI Homes and Taylor Morrison 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.

LGI Homes:
Taylor Morrison:

Both LGI Homes and Taylor Morrison 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.

LGI Homes:
Taylor Morrison:

Both LGI Homes and Taylor Morrison include monthly payment suppression / hidden costs 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.

LGI Homes:
Taylor Morrison:

Taylor Morrison has been documented using class action lawsuit waiver provisions, while LGI Homes does not have this pattern documented in available contract analyses. This represents a difference in contract risk profiles between the two builders.

LGI Homes:
Taylor Morrison:

Taylor Morrison has been documented using limitation of liability / no monetary damages provisions, while LGI Homes 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. LGI Homes has 4 documented cases and investigations; Taylor Morrison has 7. The nature and focus of litigation differs between the two builders.

LGI Homes

  • Suntop Farms class action over construction defects and drainage
  • Hunterbrook investigation into sales practices
  • Hunterbrook leaked sales manual exposing high-pressure tactics
  • Pattern of BBB and consumer complaints

Taylor Morrison

  • Multiple Texas lawsuits (Ha, Skufca, Kohlmeyer) seeking to compel arbitration
  • Wiener v. Taylor Morrison — TCPA class action over telemarketing
  • Alaqua Lakes Community Association construction defect litigation
  • Solivita club membership fee class action

Both LGI Homes and Taylor Morrison 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.

States Where Both Builders Operate

Texas
Florida
Georgia
North Carolina
Arizona
Nevada
Colorado
Oregon
Washington
California

Key Differences

Market Position

LGI Homes is positioned as one of the largest entry-level homebuilders in the united states. Taylor Morrison is positioned as top-10 national homebuilder.

Documented Contract Patterns

LGI Homes has 6 documented clause types in our analysis; Taylor Morrison has 10. Taylor Morrison 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

LGI Homes uses LGI Mortgage Solutions as its affiliated lender. Taylor Morrison uses Taylor Morrison Home Funding. Both builders offer incentives to use their affiliated lenders, which may affect financing terms and closing costs.

Geographic Overlap

LGI Homes operates in 20 states; Taylor Morrison operates in 10 states. They share 10 states where buyers may be choosing between the two.

Litigation History

LGI Homes has 4 documented cases and investigations; Taylor Morrison has 7. 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 LGI Homes or Taylor Morrison, 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.

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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.