How KB Home Uses This Clause
KB Home purchase agreements have been documented to include restrictive limited warranty exclusions provisions. KB Home's warranty provides 10 years of structural coverage, two years for mechanical systems, and one year for workmanship and materials. The one-year workmanship limitation means that exterior trim, paint, drywall, and similar items are covered only during the first year. The Florida AG settlement documented that KB Home improperly denied warranty claims and failed to disclose that homes did not conform to original building plans. This clause has been the subject of litigation, including Florida Attorney General Settlement.
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 Habitability Waiver
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
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.
Florida Attorney General Settlement
After a three-year investigation into violations of the Florida Deceptive and Unfair Trade Practices Act, KB Home agreed to a settlement valued at approximately $30 million. KB Home spent $71 million to repair 1,688 homes with water intrusion issues from construction defects, paid $6.5 million in restitution to the Attorney General's Office, and committed approximately $17 million over five years to improve construction techniques and train subcontractors. The AG alleged KB Home failed to disclose that homes did not conform to original building plans and improperly denied warranty claims.
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 | Express warranty exclusion clauses in Texas new construction contracts are generally enforceable.... |
| California | Uncertain | Warranty exclusion clauses in California new construction contracts face significant limitations.... |
| Arizona | Likely Enforceable | Express warranty exclusion clauses in Arizona new construction contracts are generally enforceable.... |
| Nevada | Uncertain | Warranty exclusion clauses in Nevada new construction contracts face significant statutory... |
| Colorado | Uncertain | Warranty exclusion clauses in Colorado new construction contracts face notable constraints.... |
| North Carolina | Likely Enforceable | Express warranty exclusion clauses in North Carolina new construction contracts are generally... |
| Florida | Likely Enforceable | Express warranty exclusion clauses in Florida new construction contracts are generally enforceable.... |
| Washington | Uncertain | Warranty exclusion clauses in Washington new construction contracts face notable constraints.... |
| Idaho | Likely Enforceable | Express warranty exclusion clauses in Idaho new construction contracts are generally enforceable.... |
Related Clauses in KB Home Contracts
This clause often works in combination with other provisions in KB Home's purchase agreements.
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
Even warranty-covered items may be subject to the overall damage limitation.
Warranty exclusions narrow coverage while third-party administration adds procedural barriers to filing claims.
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 Florida Attorney General Settlement case. The Florida Attorney General Settlement 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.