How Ivory Homes Uses This Clause
Ivory Homes purchase agreements have been documented to include mandatory binding arbitration provisions. Disputes must go to private arbitration instead of court, typically using an arbitrator selected through a process the builder influences. Buyers lose their right to a jury trial, public proceedings, and in many cases the ability to appeal an unfavorable decision.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Ivory Homes operates exclusively in Utah, the enforceability of this clause depends on Utah state law and the Federal Arbitration Act.
As Utah's largest homebuilder, Ivory Homes uses standardized contract templates across its developments. A clause identified in one community's contract is likely present in other communities' contracts.
Builder-Specific Details
Combined with Habitability Waiver
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Utah-Only Operations
Ivory Homes operates exclusively in Utah. Utah generally enforces arbitration clauses under the Utah Uniform Arbitration Act, though unconscionable provisions may be challenged.
Standard Form Contract
This clause appears in Ivory Homes' 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 Ivory Homes's use of this clause type.
Ivory Homes Construction Defect Claims (Utah)
Construction defect claims involving Ivory Homes in Utah state courts have included disputes over the enforceability of arbitration provisions. Utah courts generally uphold arbitration agreements under the Utah Uniform Arbitration Act, subject to unconscionability review.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Ivory Homes's operating states.
| State | Status | Note |
|---|---|---|
| Utah | Likely Enforceable | Utah generally enforces mandatory arbitration clauses under the Utah Uniform Arbitration Act (Utah Code Ann. Title 78B, Chapter 11) and the Federal Arbitration Act. Utah courts have upheld arbitration agreements in construction contracts, though provisions that are procedurally or substantively unconscionable may be challenged. |
Related Clauses in Ivory Homes Contracts
This clause often works in combination with other provisions in Ivory Homes's purchase agreements.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
What Buyers Can Do
- Understand the arbitration process before signing. Review which arbitration provider is specified, who selects the arbitrator, and whether you have any right to appeal. These details significantly affect the fairness of the process.
- Research the arbitration provider's track record. The specified arbitration provider may have a history with builder disputes. Understanding the provider's procedures and typical outcomes can help you prepare.
- Request removal of the arbitration clause. Ivory Homes may decline, but making the request in writing creates a record of your objection, which could be relevant if the clause is later challenged.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Ivory Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.