Overview
Meritage Homes operates in South Carolina with communities in the Charlotte metro spillover areas and the Greenville-Spartanburg region. The company builds single-family homes for first-time and move-up buyers in the state's growing suburban markets.
South Carolina's legal framework for new-home buyers includes a strong implied warranty of habitability, a Right to Cure Act requiring pre-litigation notice, and an eight-year statute of repose for construction defect claims. The South Carolina Supreme Court has issued notable rulings limiting builders' ability to waive implied warranties.
How South Carolina Law Affects Your Contract
The following analysis examines how Meritage Homes's documented contract patterns interact with South Carolina consumer protection law.
Implied Warranty of Habitability in South Carolina
South Carolina courts recognize an implied warranty of habitability for new residential construction. In Smith v. D.R. Horton (2016), the South Carolina Supreme Court found that a habitability waiver in a new-home purchase agreement was unconscionable. While that case involved a different builder, the ruling established precedent that may apply to Meritage's habitability waiver clause (HAB-001) in South Carolina.
Right to Cure Act Notice Requirement
South Carolina's Right to Cure Act (S.C. Code Ann. §§ 40-59-810 through 40-59-860) requires homeowners to provide written notice to the builder at least 90 days before filing a construction defect lawsuit. The builder has the right to inspect and offer a repair during this period. This pre-litigation process is mandatory regardless of the purchase agreement's terms.
Arbitration and Unconscionability
South Carolina courts have found certain arbitration provisions in new-home purchase agreements unconscionable, particularly when the terms are heavily one-sided. Meritage's arbitration clause (ARB-001) and class action waiver (CLA-001) may face heightened scrutiny in South Carolina given the state's precedent on unconscionability in residential construction contracts.
Eight-Year Statute of Repose
South Carolina imposes an eight-year statute of repose for construction defect claims (S.C. Code Ann. § 15-3-640). This provides a longer window than many states for discovering and reporting construction defects. Meritage's limitation of liability provisions (DAM-001) and warranty exclusions (WAR-001) operate within this statutory framework.
South Carolina Legal History
No state-specific litigation involving Meritage Homes in South Carolina has been identified in public records as of this writing.
Relevant South Carolina Laws
South Carolina courts recognize an implied warranty of habitability for new construction. The South Carolina Supreme Court has held that contractual waivers of this warranty may be unconscionable.
Prohibits unfair or deceptive acts in trade or commerce, with potential for treble damages and attorney fees.
Requires homeowners to provide written notice to the builder and allow an opportunity to inspect and offer a repair before filing a construction defect lawsuit.
South Carolina Key Facts
- 1The South Carolina Supreme Court found habitability waiver clauses unconscionable in Smith v. D.R. Horton (2016).
- 2South Carolina's right-to-repair statute requires written notice before filing a construction defect lawsuit.
- 3Mandatory arbitration clauses have been found unconscionable in some South Carolina cases involving national builders.
- 4South Carolina has a statute of repose of 8 years for construction defect claims.
- 5The Residential Builders Commission licenses and regulates residential builders in South Carolina.
- 6South Carolina courts apply a totality-of-the-circumstances test for unconscionability of contract provisions.
What South Carolina Buyers Should Know
- Know that South Carolina strongly protects the habitability warranty. The South Carolina Supreme Court has found habitability waivers in new-home purchase agreements unconscionable. Meritage's attempt to disclaim this warranty may be unenforceable under South Carolina law.
- Understand the 90-day Right to Cure notice requirement. South Carolina law requires 90 days' written notice to the builder before filing a construction defect lawsuit. Comply with this requirement to preserve your legal remedies.
- Be aware of the eight-year statute of repose. South Carolina allows construction defect claims within eight years of substantial completion. Document defects promptly and understand that claims filed after this period are time-barred.
- Verify Meritage's residential builder license. South Carolina requires residential builders to be licensed through the SC Residential Builders Commission. Verify the license status and check for any complaints or disciplinary actions.
- Hire an independent inspector before closing. Meritage has been reported to discourage independent inspections (INS-001). South Carolina law permits buyers to hire independent inspectors. Document any resistance in writing and consider pre-drywall and pre-closing inspections.