Overview
Dream Finders Homes operates in Tennessee with active communities in the Nashville metropolitan area. Tennessee is part of the company's expansion into high-growth Southeast markets.
Tennessee's common-law implied warranty of habitability and the Tennessee Consumer Protection Act provide legal protections for buyers of new construction. Tennessee has a 4-year statute of repose from substantial completion, one of the shorter timelines among states where Dream Finders operates.
How Tennessee Law Affects Your Contract
The following analysis examines how Dream Finders Homes's documented contract patterns interact with Tennessee consumer protection law.
Implied Warranty of Habitability
Tennessee courts recognize an implied warranty that new homes will be constructed in a workmanlike manner and be suitable for habitation (Dixon v. Mountain City Construction Co., 632 S.W.2d 538, Tenn. 1982). Dream Finders' contractual waiver of implied warranties (HAB-001) may face enforceability challenges under Tennessee common law.
Arbitration Provisions Under Tennessee Law
Mandatory arbitration clauses are generally enforceable in Tennessee. Dream Finders' arbitration provisions (ARB-001) will typically be upheld unless the specific terms are found to be unconscionable under Tennessee law.
Tennessee Consumer Protection Act
The Tennessee Consumer Protection Act (Tenn. Code Ann. § 47-18-101 et seq.) prohibits unfair or deceptive acts in trade and commerce. The Act allows treble damages for willful or knowing violations, providing a significant remedy if Dream Finders or Jet HomeLoans engaged in misleading practices.
No Statutory Pre-Litigation Notice Requirement
Tennessee does not have a statutory right-to-repair or pre-litigation notice requirement for construction defects. However, Dream Finders' purchase agreement may contain its own notice and cure provisions that buyers should follow before initiating any claim.
Tennessee Legal History
No state-specific litigation involving Dream Finders Homes in Tennessee has been identified in public records as of this writing.
Relevant Tennessee Laws
Prohibits unfair or deceptive acts in trade and commerce, providing consumers with remedies for misleading practices in the home purchase process.
Tennessee courts recognize an implied warranty that new homes will be constructed in a workmanlike manner and be suitable for habitation.
Construction defect claims must be filed within 4 years from substantial completion of the improvement.
Tennessee Key Facts
- 1Tennessee recognizes an implied warranty of habitability for new construction under common law.
- 2The statute of repose for construction defect claims is 4 years from substantial completion.
- 3Mandatory arbitration clauses are generally enforceable in Tennessee.
- 4Tennessee does not have a statutory right-to-repair or pre-litigation notice requirement.
- 5The Tennessee Board for Licensing Contractors regulates residential builders.
- 6The Consumer Protection Act allows treble damages for willful or knowing violations.
What Tennessee Buyers Should Know
- Know that Tennessee recognizes an implied warranty of habitability. Tennessee courts recognize an implied warranty that new homes will be constructed in a workmanlike manner. This provides protections beyond what is written in the Dream Finders purchase agreement.
- Be aware of the 4-year statute of repose. Tennessee has a 4-year statute of repose from substantial completion for construction defect claims, one of the shorter timelines in the country. Document and report defects promptly.
- Understand treble damages under the Consumer Protection Act. The Tennessee Consumer Protection Act allows treble damages for willful or knowing violations. If you believe misleading representations were made during the sales process, consult an attorney about this remedy.
- Compare Jet HomeLoans terms with outside lenders. Verify that any incentives offered for using Jet HomeLoans do not come at the cost of higher overall financing costs. Compare interest rates, closing costs, and total monthly payments with independent lenders.