How Meritage Homes Uses This Clause
Meritage Homes purchase agreements have been documented to include class action lawsuit waiver provisions. The arbitration provisions in Meritage contracts may include a waiver of the right to participate in class action proceedings. This forces buyers to pursue claims individually, which can be cost-prohibitive for defects affecting entire communities or subdivisions.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Meritage 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 Mandatory Arbitration
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Standard Form Contract
This clause appears in Meritage 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 Meritage Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Class action waivers in Texas new construction contracts are likely enforceable, particularly when... |
| Arizona | Likely Enforceable | Class action waivers in Arizona new construction contracts are likely enforceable, particularly when... |
| California | Likely Enforceable | Class action waivers in California new construction contracts are likely enforceable when paired... |
| Colorado | Likely Enforceable | Class action waivers in Colorado new construction contracts are likely enforceable when paired with... |
| Florida | Likely Enforceable | Class action waivers in Florida new construction contracts are likely enforceable when included in... |
| Georgia | Likely Enforceable | Class action waivers in Georgia new construction contracts are likely enforceable, particularly when... |
| North Carolina | Likely Enforceable | Class action waivers in North Carolina new construction contracts are likely enforceable when paired... |
| South Carolina | Likely Enforceable | Class action waivers in South Carolina new construction contracts are likely enforceable when paired... |
| Tennessee | Likely Enforceable | Class action waivers in Tennessee new construction contracts are likely enforceable when paired with... |
Related Clauses in Meritage Homes Contracts
This clause often works in combination with other provisions in Meritage Homes's purchase agreements.
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Homeowners with similar habitability defects cannot combine their claims into a single action.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
What Buyers Can Do
- Understand what the class action waiver means for community-wide issues. If multiple homes in your community have the same defect, this clause prevents you from joining together to pursue a shared claim. Each buyer must pursue their claim individually.
- Document everything from the start. If you cannot join a class action, your individual claim must stand on its own. Thorough documentation from before and after closing strengthens your position.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Meritage Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.