How KB Home Uses This Clause
KB Home purchase agreements have been documented to include class action lawsuit waiver provisions. The contract may include provisions that waive the buyer's right to participate in class action proceedings against the builder. KB Home has faced class-certification hearings specifically challenging its binding arbitration and class action waiver provisions, with plaintiffs alleging the clauses misled homeowners about their consumer rights. This clause has been the subject of litigation, including KB Home / Countrywide Appraisal Class Actions.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because KB Home operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
KB Home'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 Mandatory Arbitration
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Regional Contract Patterns
KB Home operates in a more focused geographic footprint. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Standard Form Contract
This clause appears in KB Home'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 KB Home's use of this clause type.
KB Home / Countrywide Appraisal Class Actions
Multiple class action lawsuits were filed alleging that KB Home and Countrywide Financial conspired to inflate home appraisals. Plaintiffs alleged that when independent appraisals came in below the contract price, appraisers resubmitted revised appraisals matching the builder's price. Suits were filed on behalf of buyers in Florida, South Carolina, North Carolina, Texas, and Colorado.
Homesafe Escrow Class Action Settlement
A class action against KB Home's then-subsidiary Homesafe Escrow Co. resulted in a $7.1 million settlement. Plaintiffs alleged they were promised interest on house deposits that they never received and that Homesafe had unlawfully provided and charged for escrow services.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects KB Home's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Class action waivers in Texas new construction contracts are likely enforceable, particularly when... |
| California | Likely Enforceable | Class action waivers in California new construction contracts are likely enforceable when paired... |
| Arizona | Likely Enforceable | Class action waivers in Arizona new construction contracts are likely enforceable, particularly when... |
| Nevada | Likely Enforceable | Class action waivers in Nevada new construction contracts are likely enforceable when included in... |
| Colorado | Likely Enforceable | Class action waivers in Colorado new construction contracts are likely enforceable when paired with... |
| North Carolina | Likely Enforceable | Class action waivers in North Carolina new construction contracts are likely enforceable when paired... |
| Florida | Likely Enforceable | Class action waivers in Florida new construction contracts are likely enforceable when included in... |
| Washington | Likely Enforceable | Class action waivers in Washington new construction contracts are likely enforceable when paired... |
| Idaho | Likely Enforceable | Class action waivers in Idaho new construction contracts are likely enforceable when paired with... |
Related Clauses in KB Home Contracts
This clause often works in combination with other provisions in KB Home's purchase agreements.
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Homeowners with similar habitability defects cannot combine their claims into a single action.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
What Buyers Can Do
- Understand what the class action waiver means for community-wide issues. If multiple homes in your community have the same defect, this clause prevents you from joining together to pursue a shared claim. Each buyer must pursue their claim individually.
- Document everything from the start. If you cannot join a class action, your individual claim must stand on its own. Thorough documentation from before and after closing strengthens your position.
- Review the KB Home / Countrywide Appraisal Class Actions case. The KB Home / Countrywide Appraisal Class Actions ruling may be relevant to your situation. If you are buying a KB Home 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 KB Home contracts that collectively limit buyer remedies. A contract scan can identify all of them.