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LGI Homes: Material Substitution

Contract clause analysis

How LGI Homes Uses This Clause

LGI Homes purchase agreements have been documented to include material substitution at builder's discretion provisions. The contract may grant LGI broad discretion to substitute materials, finishes, or appliances without buyer approval. This means the home you close on may differ materially from what was shown in the model or listed in the original specifications.

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

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.

StateStatusNote
TexasLikely EnforceableMaterial substitution clauses in Texas new construction contracts are likely enforceable. Texas law...
FloridaLikely EnforceableMaterial substitution clauses in Florida new construction contracts are likely enforceable. Florida...
GeorgiaLikely EnforceableMaterial substitution clauses in Georgia new construction contracts are likely enforceable. Georgia...
North CarolinaLikely EnforceableMaterial substitution clauses in North Carolina new construction contracts are likely enforceable....
South CarolinaLikely EnforceableMaterial substitution clauses in South Carolina new construction contracts are likely enforceable....
ArizonaLikely EnforceableMaterial substitution clauses in Arizona new construction contracts are likely enforceable. Arizona...
NevadaUncertainThe enforceability of material substitution clauses in Nevada new construction contracts is...
ColoradoUncertainThe enforceability of material substitution clauses in Colorado new construction contracts is...
AlabamaLikely EnforceableMaterial substitution clauses in Alabama new construction contracts are likely enforceable. Alabama...
TennesseeLikely EnforceableMaterial substitution clauses in Tennessee new construction contracts are likely enforceable....
VirginiaLikely EnforceableMaterial substitution clauses in Virginia new construction contracts are likely enforceable....
OhioLikely EnforceableMaterial substitution clauses in Ohio new construction contracts are likely enforceable. Ohio courts...
PennsylvaniaUncertainThe enforceability of material substitution clauses in Pennsylvania new construction contracts is...
New JerseyUncertainThe enforceability of material substitution clauses in New Jersey new construction contracts is...
MinnesotaUncertainThe enforceability of material substitution clauses in Minnesota new construction contracts is...
OregonUncertainThe enforceability of material substitution clauses in Oregon new construction contracts is...
WashingtonUncertainThe enforceability of material substitution clauses in Washington new construction contracts is...
CaliforniaUncertainThe enforceability of material substitution clauses in California new construction contracts is...
MarylandUncertainThe enforceability of material substitution clauses in Maryland new construction contracts is...

What Buyers Can Do

  • Get your selections in writing. Ensure all material selections, finishes, and specifications are documented in the purchase agreement or an addendum, not just shown in a model home.
  • Ask about the substitution notification process. Determine whether LGI Homes is required to notify you before making substitutions, or whether you discover changes only at closing or after move-in.
  • 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.
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This article is for informational and educational purposes only. It does not constitute legal advice. Consult a licensed attorney in your state before making legal decisions.