How Dream Finders Homes Uses This Clause
Dream Finders Homes purchase agreements have been documented to include implied warranty of habitability waiver provisions. The contract may require buyers to waive the implied warranty of habitability. In the Parkes at Stonebridge arbitration in Colorado, the arbitrator noted that express waivers or limitations on construction defect rights are void as against public policy under Colorado law, suggesting DFH contracts attempt such limitations (source: Parkes at Stonebridge HOA arbitration award, October 2024). This clause has been the subject of litigation, including Parkes at Stonebridge HOA v. Dream Finders Homes.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Dream Finders Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Dream Finders Homes's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Mandatory Arbitration
Disputes about the habitability waiver must be resolved in private arbitration, limiting the buyer's ability to challenge it in open court.
Regional Contract Patterns
Dream Finders Homes operates in a more focused geographic footprint. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Standard Form Contract
This clause appears in Dream Finders Homes's 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.
Legal History
The following cases involve Dream Finders Homes's use of this clause type.
Parkes at Stonebridge HOA v. Dream Finders Homes
The Parkes at Stonebridge Townhome Owners Association in Longmont, Colorado won a $6,413,204 arbitration award against Dream Finders for construction defects in a 92-unit townhome community built between 2018 and 2021. The arbitrator found DFH liable for negligence, breach of contract, breach of express warranty, and breach of implied warranty, awarding $5,733,471 for repair costs and $679,732 for litigation costs. Defects included crumbling driveways, heaving sidewalks, and sagging garage awnings. As of October 2024, DFH had not satisfied its obligation to pay post-judgment interest. The HOA filed a motion in Boulder County District Court seeking entry of judgment on the award (source: PR Newswire, October 31, 2024; Boulder County District Court filings).
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Dream Finders Homes's operating states.
| State | Status | Note |
|---|---|---|
| Florida | Likely Unenforceable | Florida recognizes an implied warranty of habitability for newly constructed homes, established by... |
| Texas | Not Applicable | Texas does not recognize a common law implied warranty of habitability for new residential... |
| Georgia | Likely Enforceable | Georgia's recognition of the implied warranty of habitability in new construction is limited. The... |
| North Carolina | Uncertain | North Carolina recognizes an implied warranty of habitability in new home construction, established... |
| South Carolina | Likely Unenforceable | South Carolina recognizes an implied warranty of habitability for new residential construction, and... |
| Virginia | Uncertain | Virginia recognizes an implied warranty of habitability in new residential construction under the... |
| Colorado | Likely Unenforceable | Colorado provides strong statutory protections for new home buyers through the Colorado Construction... |
| Tennessee | Uncertain | Tennessee recognizes an implied warranty of habitability in new home construction, established in... |
Related Clauses in Dream Finders Homes Contracts
This clause often works in combination with other provisions in Dream Finders Homes's purchase agreements.
Disputes about the habitability waiver must be resolved in private arbitration, limiting the buyer's ability to challenge it in open court.
Prevents homeowners from jointly challenging habitability issues, forcing individual claims.
The express warranty may be the buyer's only remedy if the habitability waiver is enforced, and warranty exclusions further narrow coverage.
The liability cap reinforces the habitability waiver by capping damages even if the waiver is struck down.
What Buyers Can Do
- Check whether your state protects the implied warranty of habitability. In states with strong implied warranty protections, the waiver may not hold up in court. Your rights depend heavily on where the home is located.
- Request that the waiver be struck from the contract. Dream Finders Homes may decline, but making the request in writing creates a record that you did not voluntarily agree to the waiver.
- Review the Parkes at Stonebridge HOA case. The Parkes at Stonebridge HOA v. Dream Finders Homes ruling may be relevant to your situation. If you are buying a Dream Finders Homes home in a state with similar legal protections, this precedent could affect the enforceability of this clause.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Dream Finders Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.