How LGI Homes Uses This Clause
LGI Homes purchase agreements have been documented to include monthly payment suppression / hidden costs provisions. Advertised monthly payments often exclude property taxes, homeowner's insurance, and HOA dues. Investigations have found that true monthly costs can be 30\u201370% higher than the figures shown in LGI marketing materials. This clause has been the subject of litigation, including Hunterbrook Leaked Sales Manual.
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 Deposit Forfeiture
Buyers who discover true costs after signing face forfeiting their deposit if they back out.
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.
Legal History
The following cases involve LGI Homes's use of this clause type.
Hunterbrook Leaked Sales Manual
A 261-page internal training document surfaced showing step-by-step tactics designed to pressure buyers into committing on their first visit. Agents were directed to steer all buyers toward the company's affiliated lender. A former sales manager confirmed that steering buyers toward the affiliated lender was effectively mandatory, not optional. The company's cancellation rate reached approximately 35.9% in Q3 2025 \u2014 more than double Lennar's rate during the same period.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects LGI Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Uncertain | Texas does not have a specific statute addressing monthly payment suppression in new construction... |
| Florida | Uncertain | Florida does not have a specific statute addressing monthly payment suppression in builder... |
| Georgia | Uncertain | Georgia does not have a specific statute addressing monthly payment suppression in builder... |
| North Carolina | Uncertain | North Carolina does not have a specific statute addressing monthly payment suppression in builder... |
| South Carolina | Uncertain | South Carolina does not have a specific statute addressing monthly payment suppression in builder... |
| Arizona | Uncertain | Arizona does not have a specific statute addressing monthly payment suppression in builder... |
| Nevada | Uncertain | Nevada does not have a specific statute addressing monthly payment suppression in builder marketing.... |
| Colorado | Uncertain | Colorado does not have a specific statute targeting monthly payment suppression in builder... |
| Alabama | Uncertain | Alabama does not have a specific statute addressing monthly payment suppression in builder... |
| Tennessee | Uncertain | Tennessee does not have a specific statute addressing monthly payment suppression in builder... |
| Virginia | Uncertain | Virginia does not have a specific statute addressing monthly payment suppression in builder... |
| Ohio | Uncertain | Ohio does not have a specific statute addressing monthly payment suppression in builder marketing.... |
| Pennsylvania | Uncertain | Pennsylvania does not have a specific statute addressing monthly payment suppression in builder... |
| New Jersey | Likely Unenforceable | New Jersey has strong consumer protection statutes and the highest effective property tax rates in... |
| Minnesota | Uncertain | Minnesota does not have a specific statute addressing monthly payment suppression in builder... |
| Oregon | Likely Unenforceable | Oregon has strong consumer protection statutes through the Unlawful Trade Practices Act (UTPA),... |
| Washington | Likely Unenforceable | Washington has strong consumer protection statutes that may make payment suppression practices... |
| California | Likely Unenforceable | California has some of the strongest consumer protection statutes in the country, and its Mello-Roos... |
| Maryland | Uncertain | Maryland does not have a specific statute addressing monthly payment suppression in builder... |
Related Clauses in LGI Homes Contracts
This clause often works in combination with other provisions in LGI Homes's purchase agreements.
Buyers who discover true costs after signing face forfeiting their deposit if they back out.
The affiliated lender may present suppressed payment estimates, and incentives encourage buyers to use that lender.
What Buyers Can Do
- Independently verify your projected monthly payment. Do not rely solely on estimates from the builder's affiliated lender. Get a loan estimate from at least one independent lender for comparison.
- Ask about temporary rate buydowns. Determine whether any quoted rate includes a temporary buydown that will expire, causing your payment to increase after the introductory period.
- Review the Hunterbrook Leaked Sales Manual case. The Hunterbrook Leaked Sales Manual ruling may be relevant to your situation. If you are buying a LGI Homes 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 LGI Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.