How Darling Homes Uses This Clause
Darling Homes purchase agreements have been documented to include mandatory binding arbitration provisions. Disputes must go to private arbitration instead of court, typically using an arbitrator selected through a process the builder influences. Buyers lose their right to a jury trial, public proceedings, 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. Darling Homes is a subsidiary of Taylor Morrison (NYSE: TMHC), but maintains separate contract templates.
As a luxury Texas builder operating in Dallas-Fort Worth and Houston, Darling Homes' contract templates are generally consistent across its markets.
Builder-Specific Details
Combined with Class Action Waiver
The arbitration clause and class action waiver work together to ensure all disputes are handled individually in private proceedings.
Taylor Morrison Subsidiary
Darling Homes was acquired by Taylor Morrison in 2020 but uses separate contract templates. The arbitration provisions in Darling's contracts may differ from Taylor Morrison's standard terms.
Standard Form Contract
This clause appears in Darling 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 Darling Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Mandatory arbitration clauses in Texas new construction contracts are generally enforceable under the Texas General Arbitration Act and the Federal Arbitration Act. Texas courts have consistently upheld arbitration provisions in residential construction contracts absent a showing of unconscionability. |
Related Clauses in Darling Homes Contracts
This clause often works in combination with other provisions in Darling Homes's purchase agreements.
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.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
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. In the luxury price range, the financial stakes of waiving your right to a jury trial are proportionally higher.
- Confirm the contracting entity. Verify whether your arbitration agreement is with Darling Homes or Taylor Morrison. The contracting entity determines which company's obligations and legal exposure apply.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Darling Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.