How Highland Homes Uses This Clause
Highland Homes purchase agreements have been documented to include affiliated lender incentive steering provisions. 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.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. This provision is closely connected to Highland Homes's affiliated lending arm, Highland HomeLoans (joint venture with PrimeLending Ventures Management, est. 2011).
Highland 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
Connection to Highland HomeLoans (joint venture with PrimeLending Ventures Management, est. 2011)
Highland Homes operates Highland HomeLoans (joint venture with PrimeLending Ventures Management, est. 2011) as an affiliated lending arm. The builder may offer financial incentives for buyers who use this lender, which creates a direct connection between the lending relationship and the terms of the purchase agreement.
Standard Form Contract
This clause appears in Highland 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.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Highland Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Texas generally permits builders to offer incentives conditioned on using a preferred lender,... |
| Florida | Likely Enforceable | Florida permits builders to offer incentives conditioned on using a preferred lender, subject to... |
What Buyers Can Do
- Compare rates with independent lenders. Highland HomeLoans (joint venture with PrimeLending Ventures Management, est. 2011) may offer closing cost credits or other incentives, but the overall loan terms may not be the most competitive available.
- Calculate the true cost of lender incentives. A closing cost credit of several thousand dollars may be offset by a higher interest rate over the life of the loan. Run the numbers for your specific situation.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Highland Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.