How LGI Homes Uses This Clause
LGI Homes purchase agreements have been documented to include mandatory binding arbitration provisions. The contract requires all disputes to be resolved through binding arbitration rather than in court. This eliminates your right to a jury trial and typically limits discovery, class actions, and the ability to appeal an unfavorable decision.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
LGI Homes'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
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Standard Form Contract
This clause appears in LGI Homes'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.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects LGI Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Mandatory arbitration clauses in Texas new construction contracts are likely enforceable. Texas has... |
| Florida | Likely Enforceable | Mandatory arbitration clauses in Florida new construction contracts are likely enforceable. Florida... |
| Georgia | Likely Enforceable | Mandatory arbitration clauses in Georgia new construction contracts are likely enforceable. Georgia... |
| North Carolina | Likely Enforceable | Mandatory arbitration clauses in North Carolina new construction contracts are likely enforceable.... |
| South Carolina | Uncertain | The enforceability of mandatory arbitration clauses in South Carolina new construction contracts is... |
| Arizona | Likely Enforceable | Mandatory arbitration clauses in Arizona new construction contracts are likely enforceable. Arizona... |
| Nevada | Likely Enforceable | Mandatory arbitration clauses in Nevada new construction contracts are likely enforceable. Nevada... |
| Colorado | Likely Enforceable | Mandatory arbitration clauses in Colorado new construction contracts are likely enforceable.... |
| Alabama | Likely Enforceable | Mandatory arbitration clauses in Alabama new construction contracts are likely enforceable. While... |
| Tennessee | Likely Enforceable | Mandatory arbitration clauses in Tennessee new construction contracts are likely enforceable.... |
| Virginia | Likely Enforceable | Mandatory arbitration clauses in Virginia new construction contracts are likely enforceable.... |
| Ohio | Likely Enforceable | Mandatory arbitration clauses in Ohio new construction contracts are likely enforceable. Ohio has... |
| Pennsylvania | Likely Enforceable | Mandatory arbitration clauses in Pennsylvania new construction contracts are likely enforceable.... |
| New Jersey | Likely Enforceable | Mandatory arbitration clauses in New Jersey new construction contracts are likely enforceable,... |
| Minnesota | Likely Enforceable | Mandatory arbitration clauses in Minnesota new construction contracts are likely enforceable.... |
| Oregon | Likely Enforceable | Mandatory arbitration clauses in Oregon new construction contracts are likely enforceable. Oregon... |
| Washington | Likely Enforceable | Mandatory arbitration clauses in Washington new construction contracts are likely enforceable.... |
| California | Uncertain | The enforceability of mandatory arbitration clauses in California new construction contracts is... |
| Maryland | Likely Enforceable | Mandatory arbitration clauses in Maryland new construction contracts are likely enforceable.... |
Related Clauses in LGI Homes Contracts
This clause often works in combination with other provisions in LGI Homes's purchase agreements.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
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.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in LGI Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.