How Dream Finders Homes Uses This Clause
Dream Finders Homes purchase agreements have been documented to include limitation of liability / no monetary damages provisions. The contract may limit the builder's liability to direct repair costs only, excluding consequential damages such as temporary housing, lost rental income, or diminished property value resulting from construction defects. 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
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
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).
Silver Meadows Townhome HOA v. DFH Mandarin, LLC
The Silver Meadows Townhome Owners Association filed suit against DFH Mandarin, LLC and Dream Finders Homes, LLC alleging construction and development defects. DFH successfully compelled arbitration. The parties settled in April 2022 for $12.0 million, including a $4.0 million insurance carrier payment, with DFH denying any admission of liability (source: DFH SEC 10-K filing).
Dream Finders Homes v. Weyerhaeuser NR Company
Dream Finders sued Weyerhaeuser over defective TJI Joists with a harmful Flak Jacket coating that affected 38 homes. After a jury trial on November 18, 2019, the District Court awarded DFH LLC $3,000,000 in damages and DFH Mandarin, LLC $11,650,000 in damages and dismissed Weyerhaeuser's counterclaim. Weyerhaeuser appealed the ruling (source: FindLaw, Colorado Court of Appeals; DFH SEC 10-K filing).
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Dream Finders Homes's operating states.
| State | Status | Note |
|---|---|---|
| Florida | Uncertain | Florida law imposes statutory protections for construction defect claims under Chapter 558 that may... |
| Texas | Uncertain | Texas courts generally enforce contractual liability limitations but subject them to... |
| Georgia | Uncertain | Georgia law permits contractual limitation of liability but subjects such clauses to... |
| North Carolina | Uncertain | North Carolina recognizes the implied warranty of habitability for new construction and has... |
| South Carolina | Likely Unenforceable | South Carolina courts have found similar builder contract provisions unconscionable. In Smith v.... |
| Virginia | Uncertain | Virginia generally enforces contractual liability limitations but recognizes the implied warranty of... |
| Colorado | Likely Unenforceable | Colorado's Construction Defect Action Reform Act (CDARA) and the Homeowner Protection Act of 2007... |
| Tennessee | Uncertain | Tennessee recognizes the implied warranty of habitability and has consumer protection statutes that... |
Related Clauses in Dream Finders Homes Contracts
This clause often works in combination with other provisions in Dream Finders Homes's purchase agreements.
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
Together these clauses eliminate both the legal standard (habitability) and the remedy (damages).
The damage cap limits recovery even for items covered by the express warranty.
What Buyers Can Do
- Understand what damages are excluded. The limitation may cover consequential damages, incidental damages, or all monetary damages beyond the purchase price. The scope of the limitation matters significantly.
- Ask whether the limitation applies to construction defects. Some liability limitations are drafted broadly enough to encompass defect claims. Clarify whether defect-related damages are capped or excluded.
- 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.