How Maronda Homes Uses This Clause
Maronda Homes purchase agreements have been documented to include mandatory binding arbitration provisions. Maronda Homes contracts have required buyers to resolve disputes through binding arbitration, waiving any right to file, litigate, or have claims heard in court. The arbitration clause further provides that if a buyer files an action in court against the seller, the buyer consents to immediate dismissal with prejudice and must reimburse the seller for all attorneys' fees and costs. This creates a punitive financial deterrent against buyers who attempt to exercise court access. (Source: Anderson v. Maronda Homes Inc. of Florida, Florida 5th DCA, 2012; FindLaw Case No. 5D10-3218) This clause has been the subject of litigation, including Anderson v. Maronda Homes Inc. of Florida.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Maronda 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 Class Action Waiver
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Standard Form Contract
This clause appears in Maronda 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 Maronda Homes's use of this clause type.
Anderson v. Maronda Homes Inc. of Florida
Vivian Anderson contracted to purchase a new home from Maronda and paid a $10,197 deposit. After the contract was terminated, Maronda returned only $7,697, retaining $2,500 for marketing and carrying costs. Anderson filed claims under the Florida Deceptive and Unfair Trade Practices Act and sought class action arbitration. The arbitrator issued a clause construction award holding that class arbitration was not permitted under the contract, and the trial court confirmed this award. The case illustrates both Maronda's deposit retention practices and the enforcement of its mandatory arbitration clause with class action prohibition. (Source: FindLaw, Florida 5th DCA, Case No. 5D10-3218, 2012)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Maronda Homes's operating states.
| State | Status | Note |
|---|---|---|
| Florida | Likely Enforceable | Mandatory arbitration clauses in Florida new construction contracts are likely enforceable. Florida... |
| 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.... |
| Georgia | Likely Enforceable | Mandatory arbitration clauses in Georgia new construction contracts are likely enforceable. Georgia... |
Related Clauses in Maronda Homes Contracts
This clause often works in combination with other provisions in Maronda Homes's purchase agreements.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Even if an arbitrator finds in the buyer's favor, the liability cap may limit the award.
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.
- Review the Anderson case. The Anderson v. Maronda Homes Inc. of Florida ruling may be relevant to your situation. If you are buying a Maronda 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 Maronda Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.