Overview
KB Home operates in Florida through communities in the Jacksonville, Orlando, and Tampa metropolitan areas. Florida is part of KB Home's Southeast segment. Florida is particularly significant in KB Home's legal history: the Florida Attorney General's Office conducted a three-year investigation that resulted in a settlement valued at approximately $30 million, addressing construction defects affecting 1,688 homes with water intrusion issues.
Florida's Chapter 558 construction defect statute requires a pre-suit notice and repair process. The state also provides statutory warranty protections under Florida Statute § 553.835 and common law implied warranty doctrines. The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) was central to the Attorney General's enforcement action against KB Home.
How Florida Law Affects Your Contract
The following analysis examines how KB Home's documented contract patterns interact with Florida consumer protection law.
Florida Chapter 558 Pre-Suit Process
Florida's Construction Defect Statute (Fla. Stat. § 558.001 et seq.) requires a pre-suit notice and opportunity to repair before buyers can file construction defect lawsuits. KB Home buyers must provide written notice of claimed defects, and the builder has 75 days to respond with an offer to repair, settle, or deny the claim. Given KB Home's documented history of water intrusion defects affecting 1,688 Florida homes, buyers should be thorough in documenting all claimed defects during the notice process.
Florida Attorney General Settlement Implications
The Florida Attorney General's investigation found that KB Home violated the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) by failing to disclose that homes did not conform to original building plans and by improperly denying warranty claims (HAB-001). The settlement required KB Home to spend $71 million on repairs, pay $6.5 million in restitution, and invest approximately $17 million in construction improvements. Florida buyers should be aware of this precedent when evaluating KB Home's warranty practices.
Florida Implied Warranty Protections
Florida recognizes an implied warranty of habitability and fitness for new residential construction. KB Home's habitability waiver provisions (HAB-001) face enforceability challenges under Florida law. The Attorney General's settlement specifically addressed KB Home's practice of denying warranty repair requests by citing maintenance failures when the problems were attributable to defective construction, and denying coverage to buyers who purchased through short sales or foreclosures.
Arbitration and Class Action Waiver in Florida
Florida courts generally enforce mandatory arbitration clauses under the Florida Arbitration Code (Fla. Stat. § 682.01 et seq.) and the Federal Arbitration Act. KB Home's binding arbitration provisions (ARB-001) and class action waiver (CLA-001) have been specifically challenged in Florida, where plaintiffs have alleged the clauses misled homeowners about their consumer rights. KB Home / Countrywide appraisal class actions were also filed on behalf of Florida buyers.
FDUTPA Consumer Protection Claims
The Florida Deceptive and Unfair Trade Practices Act (Fla. Stat. § 501.201 et seq.) prohibits unfair or deceptive acts in commerce. The Florida AG's successful enforcement action against KB Home under FDUTPA established precedent for consumer protection claims related to construction defects, warranty denials, and failure to disclose deviations from building plans. Florida buyers may have FDUTPA claims if KB Home's practices repeat patterns identified in the settlement.
Florida Legal History
Selected cases and investigations involving KB Home in Florida.
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, paid $6.5 million in restitution, and committed approximately $17 million over five years to improve construction techniques and train subcontractors.
KB Home / Countrywide Appraisal Claims (Florida)
Class action lawsuits were filed alleging that KB Home and Countrywide Financial conspired to inflate home appraisals in Florida. Plaintiffs alleged that when independent appraisals came in below the contract price, appraisers resubmitted revised appraisals matching the builder's price.
Relevant Florida Laws
Requires a 60-day written notice to the contractor before filing a construction defect lawsuit, giving the builder an opportunity to inspect and offer a repair.
Florida courts recognize an implied warranty that new homes will be habitable and constructed in a workmanlike manner. Contractual waivers of this warranty may be found unenforceable.
Florida maintains one of the most comprehensive building codes in the United States, with particular emphasis on hurricane and wind resistance standards.
Prohibits unfair or deceptive acts in trade or commerce, providing consumers with a cause of action for misleading representations during the home sales process.
Florida Key Facts
- 1Florida courts have found implied warranty of habitability waivers unenforceable in some cases.
- 2Mandatory arbitration is generally enforceable, though specific provisions have been found unconscionable.
- 3Florida's building code is among the most comprehensive in the U.S., particularly for hurricane resistance.
- 4The right-to-repair statute requires 60-day notice before suing for construction defects.
- 5Florida has a 4-year statute of limitations for construction defect claims and a 10-year statute of repose.
- 6Builders in Florida must be licensed under the Construction Industry Licensing Board.
What Florida Buyers Should Know
- Learn from the Florida AG settlement findings. The Florida Attorney General found that KB Home failed to disclose that homes did not conform to original building plans and improperly denied warranty claims. Request and review the building plans for your home and compare them to the as-built construction. Document any deviations.
- Follow the Chapter 558 pre-suit process. Florida law requires a pre-suit notice and repair process before filing a construction defect lawsuit. Given KB Home's documented history of water intrusion in 1,688 Florida homes, thoroughly document all moisture-related issues with photographs, moisture readings, and written correspondence.
- Know that Florida protects implied warranty rights. Florida recognizes implied warranties of habitability for new homes. The Florida AG settlement specifically addressed KB Home's practice of denying warranty claims by blaming homeowner maintenance when defects were attributable to construction. Contractual waivers of implied warranty may be unenforceable (HAB-001).
- Hire an independent inspector for moisture and water intrusion. Water intrusion was the central issue in the Florida AG's investigation of KB Home. Florida's climate makes moisture management critical. Hire a licensed inspector experienced with Florida construction, and specifically request water intrusion testing at pre-closing.
- Evaluate the arbitration election with Florida precedent in mind. KB Home's arbitration and class action waiver provisions have been specifically challenged by Florida buyers. Consult a Florida real estate attorney before selecting binding arbitration (ARB-001, WAR-002), as this election may affect your ability to pursue FDUTPA claims.