How Dream Finders Homes Uses This Clause
Dream Finders Homes purchase agreements have been documented to include restrictive limited warranty exclusions provisions. Dream Finders provides a limited warranty beginning on the date of closing with coverage periods varying by component. After the first year, concrete floors in basements and garages are excluded. Fences, landscaping, driveways, and walkways are excluded entirely. The warranty extends only to the statute of repose in the applicable state (source: DFH Homeowner Use Maintenance Limited Warranty document). 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 Habitability Waiver
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
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).
Multiple Construction Defect Suits (Florida)
Dream Finders has been named as defendant in numerous individual construction defect lawsuits in Florida, particularly in St. Johns County and Clay County, alleging design and construction deficiencies, building code violations, and concealment of defects. Cases include Heintzman v. DFH (2021), Guggilam v. DFH, Jordan Burks v. DFH, Levings v. DFH, and others filed in the Seventh Judicial Circuit (source: UniCourt and Trellis.Law court records).
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 Enforceable | Express warranty exclusion clauses in Florida new construction contracts are generally enforceable.... |
| Texas | Likely Enforceable | Express warranty exclusion clauses in Texas new construction contracts are generally enforceable.... |
| Georgia | Likely Enforceable | Express warranty exclusion clauses in Georgia new construction contracts are generally enforceable.... |
| North Carolina | Likely Enforceable | Express warranty exclusion clauses in North Carolina new construction contracts are generally... |
| South Carolina | Likely Enforceable | Express warranty exclusion clauses in South Carolina new construction contracts are generally... |
| Virginia | Likely Enforceable | Express warranty exclusion clauses in Virginia new construction contracts are generally enforceable.... |
| Colorado | Uncertain | Warranty exclusion clauses in Colorado new construction contracts face notable constraints.... |
| Tennessee | Likely Enforceable | Express warranty exclusion clauses in Tennessee new construction contracts are generally... |
Related Clauses in Dream Finders Homes Contracts
This clause often works in combination with other provisions in Dream Finders Homes's purchase agreements.
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
Warranty exclusions narrow coverage while third-party administration adds procedural barriers to filing claims.
Without independent inspection, defects may go undiscovered until after warranty exclusion periods expire.
Substituted materials may not be covered under the same warranty terms as originally specified materials.
What Buyers Can Do
- Read the warranty exclusion list carefully. The exclusions may cover common issues like cosmetic defects, drainage problems, HVAC performance, and landscaping. Know what is not covered before you close.
- Understand warranty durations by category. Structural warranties may last 10 years, systems warranties 2 years, and cosmetic warranties just 1 year. Each category has different coverage and exclusions.
- 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.