How Meritage Homes Uses This Clause
Meritage Homes purchase agreements have been documented to include restrictive limited warranty exclusions provisions. Meritage's warranty program contains extensive exclusion lists. A 12News investigation reported that Maricopa, Arizona, residents were told their warranty could be voided if an independent inspector crawled into the attic or went on the roof — effectively discouraging third-party verification of construction quality. This clause has been the subject of litigation, including Meritage Homes of Texas v. Pouye & Toure.
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 Habitability Waiver
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
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.
Legal History
The following cases involve Meritage Homes's use of this clause type.
Meritage Homes of Texas v. Pouye & Toure
Meritage attempted to compel arbitration against homeowners who purchased a previously owned Meritage home. The buyers alleged cracks in the floor, walls, ceiling, and foundation. The appellate court upheld the trial court's denial of the arbitration motion, finding that the arbitration clause in Meritage's original purchase agreement could not bind subsequent purchasers who were not parties to that contract.
Stucco Defect Claims (TX & FL) — Underlying Homeowner Actions
Homeowners in Texas and Florida began filing claims starting in late 2017 alleging design and construction defects in exterior stucco systems — specifically, inadequately installed stucco that fails to resist cracking or drain moisture. Meritage has reported over 1,300 such claims, with roughly 500 settled. Claims were filed under the Texas Residential Construction Liability Act and Florida's Construction Defect Statute.
Meritage Homes of Texas v. AIG Specialty Insurance Co.
Meritage sued its umbrella insurer AIG seeking coverage for approximately $11 million paid out in stucco defect settlements. The court found that the widespread stucco defects stemmed from the same defective installation practices (including violations of ASTM construction standards) and could be treated as a single occurrence. The court largely sided with Meritage on coverage, though litigation over remaining claims continues.
Arizona Registrar of Contractors — Workmanship Complaints
A 12News investigation found 265 complaints filed against Meritage with the Arizona Registrar of Contractors, with 81% alleging poor workmanship. Complaints peaked at 44 filings in 2022. Residents of the Province community in Maricopa reported issues including foundation defects, pest infestations, and carbon monoxide concerns in newly constructed homes.
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 | Express warranty exclusion clauses in Texas new construction contracts are generally enforceable.... |
| Arizona | Likely Enforceable | Express warranty exclusion clauses in Arizona new construction contracts are generally enforceable.... |
| California | Uncertain | Warranty exclusion clauses in California new construction contracts face significant limitations.... |
| Colorado | Uncertain | Warranty exclusion clauses in Colorado new construction contracts face notable constraints.... |
| Florida | Likely Enforceable | Express warranty exclusion clauses in Florida new construction contracts are generally enforceable.... |
| Georgia | Likely Enforceable | Express warranty exclusion clauses in Georgia new construction contracts are generally enforceable.... |
| North Carolina | Likely Enforceable | Express warranty exclusion clauses in North Carolina new construction contracts are generally... |
| South Carolina | Likely Enforceable | Express warranty exclusion clauses in South Carolina new construction contracts are generally... |
| Tennessee | Likely Enforceable | Express warranty exclusion clauses in Tennessee new construction contracts are generally... |
Related Clauses in Meritage Homes Contracts
This clause often works in combination with other provisions in Meritage Homes's purchase agreements.
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
Without independent inspection, defects may go undiscovered until after warranty exclusion periods expire.
Substituted materials may not be covered under the same warranty terms as originally specified materials.
Even warranty-covered items may be subject to the overall damage limitation.
What Buyers Can Do
- Read the warranty exclusion list carefully. The exclusions may cover common issues like cosmetic defects, drainage problems, HVAC performance, and landscaping. Know what is not covered before you close.
- Understand warranty durations by category. Structural warranties may last 10 years, systems warranties 2 years, and cosmetic warranties just 1 year. Each category has different coverage and exclusions.
- Review the Meritage Homes of Texas case. The Meritage Homes of Texas v. Pouye & Toure ruling may be relevant to your situation. If you are buying a Meritage 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 Meritage Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.