How Lennar Uses This Clause
Lennar purchase agreements have been documented to include restrictive limited warranty exclusions provisions. The warranty is limited in scope, duration, and covered items, often far less than buyers expect. Structural coverage may be short-term, and cosmetic or system defects may have narrow claim windows. This clause has been the subject of litigation, including Damico v. Lennar Carolinas.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Lennar'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.
Standard Form Contract
This clause appears in Lennar'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 Lennar's use of this clause type.
Damico v. Lennar Carolinas
Construction defect case arising from The Abbey development in Berkeley County. The South Carolina Supreme Court found the arbitration provision unconscionable and declined to sever it on public policy grounds, describing the purchase agreement as a contract of adhesion that buyers had no meaningful ability to negotiate.
Seminole Tribe of Florida v. Lennar
The Seminole Tribe alleged that 552 homes built by Lennar were defective, with many rendered uninhabitable. Roofing issues were so severe that full replacements were required. Lennar moved to compel arbitration. The Tribe described damages in the tens, if not hundreds of millions of dollars.
LaMorada Lawsuits
Multiple condominium associations in the LaMorada community sued Lennar over widespread construction defects and building code violations. The development has generated approximately 20 lawsuits over a five-year period.
CalAtlantic/Lennar Structural Defects
Homes built on the Georgetown model were found to have improperly installed I-joists, causing noticeable floor sagging. Expert evaluation confirmed structural defects requiring remediation across multiple homes in the development.
Hunterbrook Media Investigation
An investigation found that Lennar budgets approximately $3,602 per home in warranty reserves, while actual repair costs for defective homes can range from $5,000 to $20,000 or more. A Lennar salesperson told the reporter that the builder has no obligation to agree with the findings of a third-party inspector. CEO Stuart Miller has publicly stated the company would value-engineer every component of their homes.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Lennar's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Express warranty exclusion clauses in Texas new construction contracts are generally enforceable.... |
| Florida | Likely Enforceable | Express warranty exclusion clauses in Florida 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.... |
| Colorado | Uncertain | Warranty exclusion clauses in Colorado new construction contracts face notable constraints.... |
| Nevada | Uncertain | Warranty exclusion clauses in Nevada new construction contracts face significant statutory... |
| North Carolina | Likely Enforceable | Express warranty exclusion clauses in North Carolina new construction contracts are generally... |
| South Carolina | Likely Enforceable | Express warranty exclusion clauses in South Carolina new construction contracts are generally... |
| Georgia | Likely Enforceable | Express warranty exclusion clauses in Georgia new construction contracts are generally enforceable.... |
| Virginia | Likely Enforceable | Express warranty exclusion clauses in Virginia new construction contracts are generally enforceable.... |
| Maryland | Uncertain | Warranty exclusion clauses in Maryland new construction contracts face notable constraints. The... |
| New Jersey | Uncertain | Warranty exclusion clauses in New Jersey new construction contracts face significant statutory... |
| Tennessee | Likely Enforceable | Express warranty exclusion clauses in Tennessee new construction contracts are generally... |
| Minnesota | Uncertain | Warranty exclusion clauses in Minnesota new construction contracts face significant statutory... |
| Washington | Uncertain | Warranty exclusion clauses in Washington new construction contracts face notable constraints.... |
| Oregon | Uncertain | Warranty exclusion clauses in Oregon new construction contracts face constraints under Oregon's... |
| Illinois | Uncertain | Warranty exclusion clauses in Illinois new construction contracts face notable constraints. Illinois... |
| Indiana | Likely Enforceable | Express warranty exclusion clauses in Indiana new construction contracts are generally enforceable.... |
| Pennsylvania | Likely Enforceable | Express warranty exclusion clauses in Pennsylvania new construction contracts are generally... |
| Idaho | Likely Enforceable | Express warranty exclusion clauses in Idaho new construction contracts are generally enforceable.... |
| Alabama | Likely Enforceable | Express warranty exclusion clauses in Alabama new construction contracts are generally enforceable.... |
| Utah | Likely Enforceable | Express warranty exclusion clauses in Utah new construction contracts are generally enforceable.... |
Related Clauses in Lennar Contracts
This clause often works in combination with other provisions in Lennar's purchase agreements.
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
Without independent inspection, defects may go undiscovered until after warranty exclusion periods expire.
Substituted materials may not be covered under the same warranty terms as originally specified materials.
Warranty exclusions narrow coverage while third-party administration adds procedural barriers to filing claims.
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 Damico case. The Damico v. Lennar Carolinas ruling may be relevant to your situation. If you are buying a Lennar 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 Lennar contracts that collectively limit buyer remedies. A contract scan can identify all of them.