Overview
D.R. Horton is headquartered in Arlington, Texas and operates extensively throughout the state. Texas represents the company's largest market by volume, with active communities across the Dallas-Fort Worth metroplex, Houston, San Antonio, Austin, and surrounding areas.
As a Texas-based builder, D.R. Horton's contract templates are heavily influenced by Texas law. The absence of a statutory implied warranty of habitability in Texas means the builder's express warranty and contract terms carry particular weight for Texas buyers.
How Texas Law Affects Your Contract
The following analysis examines how D.R. Horton's documented contract patterns interact with Texas consumer protection law.
Habitability Waivers Under Texas Law
Texas does not have a statutory implied warranty of habitability for new construction. D.R. Horton's habitability waiver clause (HAB-001) may carry more weight here than in states like South Carolina, where the Supreme Court found such waivers unconscionable in Smith v. D.R. Horton (2016). Texas buyers rely primarily on the builder's express warranty and the Deceptive Trade Practices Act for recourse.
Arbitration Enforceability in Texas
Mandatory arbitration clauses are generally enforceable in Texas under both the Federal Arbitration Act and the Texas General Arbitration Act. Unlike South Carolina, Texas courts have not broadly ruled D.R. Horton's arbitration provisions unconscionable. Buyers should understand that signing a contract with an arbitration clause typically waives their right to a jury trial.
RCLA Notice Requirements
Before filing a construction defect lawsuit in Texas, homeowners must provide written notice under the Residential Construction Liability Act (Tex. Prop. Code §§ 27.001–27.007) and allow a 60-day inspection period. This applies regardless of what the purchase agreement says. Failure to comply can limit the damages a buyer may recover.
DHI Mortgage and DTPA Claims
D.R. Horton's affiliated lender, DHI Mortgage, is headquartered in Texas and provides financing to a significant share of D.R. Horton buyers statewide. The Texas Deceptive Trade Practices Act (Tex. Bus. & Com. Code §§ 17.41–17.63) may provide remedies if buyers were misled about monthly payment amounts, interest rate buydowns, or closing costs.
Deposit Forfeiture in Texas
D.R. Horton's deposit forfeiture provisions (DEP-001) are subject to Texas contract law. Texas courts generally enforce liquidated damages clauses if they are a reasonable estimate of anticipated damages. However, forfeiture provisions that function as penalties rather than reasonable estimates may be challenged under Texas law.
Texas Legal History
No state-specific litigation involving D.R. Horton in Texas has been identified in public records as of this writing.
Relevant Texas Laws
Provides buyers with additional remedies for misleading representations made during the home sales process, including the potential for treble damages in cases of knowing or intentional conduct.
Requires homeowners to provide written notice and a 60-day inspection period before filing a construction defect lawsuit against a builder.
Governs express warranty obligations for residential construction. Texas does not impose a statutory implied warranty of habitability on new home builders.
Texas Key Facts
- 1Texas does not have a statutory implied warranty of habitability for new construction.
- 2Mandatory arbitration clauses are generally enforceable under both the Federal Arbitration Act and the Texas General Arbitration Act.
- 3Texas has no statutory cooling-off period for new construction purchase agreements.
- 4The Texas Residential Construction Commission was abolished in 2009.
- 5The RCLA requires 60-day written notice to the builder before filing a construction defect lawsuit.
- 6The DTPA allows consumers to seek damages for false, misleading, or deceptive acts in the sale of goods and services, including new homes.
What Texas Buyers Should Know
- Understand that Texas lacks a statutory habitability warranty. Unlike many other states, Texas does not guarantee by statute that a newly built home will be habitable. Your protections depend primarily on the builder's express warranty, common law, and the Deceptive Trade Practices Act.
- Know the RCLA notice requirement before considering legal action. Texas law requires 60 days' written notice to the builder before filing a construction defect lawsuit. An attorney familiar with the RCLA can help you comply with this mandatory pre-suit requirement.
- Consider a DTPA claim if misled during the sales process. The Texas Deceptive Trade Practices Act provides remedies if a builder or sales representative made misleading statements about the home, contract terms, or financing. Knowing violations can result in treble damages.
- Compare DHI Mortgage terms with outside lenders. D.R. Horton may offer incentives to use DHI Mortgage. Before committing, compare rates and verify that quoted monthly payments include property taxes, homeowner's insurance, and HOA fees.
- Request independent inspections at key milestones. The purchase agreement may attempt to restrict inspections. In practice, Texas buyers can generally arrange for independent inspections at pre-drywall, pre-closing, and final walkthrough stages.