Overview
| Market Position | Top-30 U.S. homebuilder; approximately 4,000 homes per year across Texas |
| Ownership | Private — 100% employee-owned (ESOP since 2015) |
| Headquarters | Plano, Texas |
| Founded | 1985 by Rod Sanders and Jean Ann Brock |
| Markets | Dallas–Fort Worth, Houston, Austin, San Antonio |
| Affiliated Lender | Highland HomeLoans (joint venture with PrimeLending Ventures Management, est. 2011) |
Highland Homes is a privately held, 100% employee-owned homebuilder headquartered in Plano, Texas. Founded in 1985 by siblings Rod Sanders and Jean Ann Brock, the company transitioned to an Employee Stock Ownership Plan (ESOP) in 2015. Highland builds approximately 4,000 homes per year across four major Texas metros and has ranked among the nation's top 30 builders each year since 2008, according to Builder Magazine.
Note: A separate, unaffiliated company also named Highland Homes operates in Central Florida. That Florida entity, founded in 1996, was acquired by Clayton Properties Group (a Berkshire Hathaway subsidiary) in May 2019. The two companies share a name but have no common ownership. This profile covers the Texas-based Highland Homes only.
Documented Contract Patterns
The following patterns have been documented in Highland Homes purchase agreements. Not every contract contains every clause, and language varies by state and community.
Structural Warranty Reduction (10 Years to 6 Years)
Effective January 1, 2026, Highland Homes reduced its structural and foundation warranty from ten years to six years for all new contracts. The company cited internal claims data showing most structural issues surface within the first two to three years. However, foundation movement in Texas expansive-clay soils can take longer to manifest, and several competing DFW builders — including David Weekley, Perry Homes, and Shaddock Homes — continue to offer ten-year structural warranties.
Affiliated Lender Incentive Steering
Highland Homes operates Highland HomeLoans, a joint venture with PrimeLending Ventures Management established in 2011. Closing-cost assistance, interest-rate buydowns, and other builder incentives are frequently conditioned on using Highland HomeLoans. Under RESPA, Highland must provide an Affiliated Business Arrangement disclosure and cannot require buyers to use its affiliated lender, but the financial incentive structure can effectively steer buyers toward Highland HomeLoans.
Material and Specification Substitution
Like most Texas production builders, Highland Homes' contract grants the builder discretion to substitute materials, finishes, or appliances with alternatives the builder deems comparable. This is standard industry language, but it means the home delivered at closing may differ from what was shown in the model home or original specifications.
Texas RCLA Pre-Suit Notice Requirement
Highland Homes' contracts operate under the Texas Residential Construction Liability Act (RCLA), which requires homeowners to provide 60 days' written notice to the builder before filing suit for construction defects. The builder then has the right to inspect and offer to repair. While this is a statutory requirement rather than a builder-imposed clause, buyers should understand that it delays litigation and gives the builder significant control over the initial remedy.
Legal History
Selected cases and investigations involving Highland Homes construction quality, contract enforcement, and lending practices.
Highland Homes Ltd. v. State
Beginning in 2003, Highland Homes deducted funds from approximately 1,864 subcontractors' paychecks — totaling roughly $3.1 million — ostensibly to purchase general liability insurance on their behalf. An investigation revealed that Highland never purchased insurance for the subcontractors and instead accrued the funds on its balance sheet. Subcontractor Benny & Benny Construction sued, and the case expanded into a class action. Highland settled for $3,672,000, resulting in each class member receiving approximately 115% of the amount withheld. The Texas Supreme Court addressed a dispute over unclaimed settlement funds and the cy pres award to The Nature Conservancy, ultimately ruling the settlement agreement was enforceable.
Payne v. Highland Homes, Ltd.
Homeowners Peter and Mary Beth Payne, along with David and Oksana Howard, sued Highland Homes and the developers of their subdivision, alleging violations of Texas Water Code Section 11.086, negligence per se, and common-law negligence. The homeowners claimed that Highland Homes and the developers failed to protect their properties from significant flooding and erosion in a creek adjacent to the subdivision. The trial court ruled against the homeowners, and the Second District Court of Appeals affirmed the judgment in 2016.
In re Highland Homes — Houston, LLC
Highland Homes — Houston, LLC sought mandamus relief from the First District Court of Appeals in a construction dispute originating in the 400th District Court of Fort Bend County. A separate mandamus petition from the 268th District Court of Fort Bend County was also filed that year. The cases involved procedural disputes related to homeowner construction-defect claims under the Texas Residential Construction Liability Act.
BBB Complaint History
Highland Homes holds an A+ rating with the Better Business Bureau but is not BBB-accredited. The BBB profile shows 36 complaints closed in the last three years and 15 complaints closed in the last twelve months. Documented complaint themes include construction defects such as cracked pipes, improperly installed plumbing, foundation issues, and disputes over warranty service responsiveness.
What Buyers Should Know
- Understand the reduced structural warranty. For contracts signed on or after January 1, 2026, Highland Homes offers a six-year structural and foundation warranty, down from the previous ten-year coverage. Foundation issues in Texas expansive-clay soils can take years to develop. Ask whether the six-year term provides adequate protection for your specific lot and soil conditions.
- Compare lender offers independently. Highland HomeLoans is an affiliated lender, and builder incentives such as closing-cost credits and rate buydowns may be tied to using it. Under RESPA, you cannot be required to use the affiliated lender. Get quotes from at least two independent lenders and compare the total cost of the loan — not just the interest rate — before deciding.
- Document all specifications in writing. The contract likely permits material substitutions at the builder's discretion. Before signing, confirm all critical finishes, appliances, and materials in a written addendum. Photograph the model home features you expect and reference them in the contract.
- Hire an independent home inspector. Do not rely solely on Highland's internal quality processes. An independent inspector can identify construction issues before closing, while you still have negotiating leverage. Consider scheduling inspections at both the pre-drywall and pre-closing stages.
- Know the RCLA process before you close. Texas law requires 60 days' written notice to the builder before filing suit for construction defects. The builder has the right to inspect and offer repairs. Understand this process in advance so you can act quickly if defects emerge after closing.
- Have the contract reviewed by a real estate attorney. Highland Homes uses its own purchase agreement, not the standard TREC form. An attorney can identify warranty limitations, deposit forfeiture terms, dispute-resolution clauses, and other provisions that may limit your rights. The cost of a contract review is small relative to the financial exposure of a home purchase.