criticalWAR-001

Highland Homes: Warranty Exclusions

Contract clause analysis

How Highland Homes Uses This Clause

Highland Homes purchase agreements have been documented to include restrictive limited warranty exclusions provisions. 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. This clause has been the subject of litigation, including In re Highland Homes — Houston, LLC.

This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.

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

Combined with Material Substitution

Substituted materials may not be covered under the same warranty terms as originally specified materials.

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.

Legal History

The following cases involve Highland Homes's use of this clause type.

In re Highland Homes — Houston, LLC

Texas Court of Appeals, First District (Fort Bend County) · 2022

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

Better Business Bureau (Dallas) · Ongoing

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.

State-by-State Enforceability

Enforceability of this clause varies by state. The following reflects Highland Homes's operating states.

StateStatusNote
TexasLikely EnforceableExpress warranty exclusion clauses in Texas new construction contracts are generally enforceable....
FloridaLikely EnforceableExpress warranty exclusion clauses in Florida new construction contracts are generally enforceable....

Related Clauses in Highland Homes Contracts

This clause often works in combination with other provisions in Highland Homes's purchase agreements.

MAT-001Material Substitution

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 In re Highland Homes — Houston, LLC case. The In re Highland Homes — Houston, LLC ruling may be relevant to your situation. If you are buying a Highland 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 Highland Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.
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This article is for informational and educational purposes only. It does not constitute legal advice. Consult a licensed attorney in your state before making legal decisions.