How M/I Homes Uses This Clause
M/I Homes purchase agreements have been documented to include implied warranty of habitability waiver provisions. M/I Homes' warranty program provides one year of workmanship coverage and 10 years of structural warranty coverage. The limited warranty may be designated as the buyer's exclusive remedy, potentially displacing implied warranties of habitability or fitness under state law. In the Illinois Supreme Court case Acuity v. M/I Homes of Chicago, LLC (2023 IL 129087), a townhome owners' association alleged breach of implied warranty of habitability against M/I Homes for construction defects causing water intrusion. Buyers should verify whether their state permits waiver of implied warranties in new-construction contracts. This clause has been the subject of litigation, including Acuity v. M/I Homes of Chicago, LLC.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because M/I Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
M/I 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
Disputes about the habitability waiver must be resolved in private arbitration, limiting the buyer's ability to challenge it in open court.
Regional Contract Patterns
M/I Homes operates in a more focused geographic footprint. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Standard Form Contract
This clause appears in M/I 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 M/I Homes's use of this clause type.
Acuity v. M/I Homes of Chicago, LLC
A townhome owners' association in Hanover Park, Illinois alleged breach of contract and breach of implied warranty of habitability against M/I Homes as the general contractor, developer, and seller, claiming that subcontractors used defective materials and faulty workmanship causing water intrusion and damage to the townhomes. In a landmark decision (2023 IL 129087), the Illinois Supreme Court addressed insurance coverage for construction defect claims, holding that property damage from faulty work can constitute an occurrence under standard CGL insurance policies.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects M/I Homes's operating states.
| State | Status | Note |
|---|---|---|
| Ohio | Uncertain | Ohio recognizes an implied warranty of habitability for new residential construction under Mitchem... |
| Indiana | Uncertain | Indiana recognizes an implied warranty of habitability in new residential construction under Theis... |
| Michigan | Uncertain | Michigan recognizes an implied warranty of habitability for new residential construction under Weeks... |
| Illinois | Likely Unenforceable | Illinois recognizes a strong implied warranty of habitability for new residential construction under... |
| North Carolina | Uncertain | North Carolina recognizes an implied warranty of habitability in new home construction, established... |
| South Carolina | Likely Unenforceable | South Carolina recognizes an implied warranty of habitability for new residential construction, and... |
| Florida | Likely Unenforceable | Florida recognizes an implied warranty of habitability for newly constructed homes, established by... |
| Texas | Not Applicable | Texas does not recognize a common law implied warranty of habitability for new residential... |
| Tennessee | Uncertain | Tennessee recognizes an implied warranty of habitability in new home construction, established in... |
| Minnesota | Likely Unenforceable | Minnesota recognizes a strong implied warranty of habitability for new residential construction... |
| Virginia | Uncertain | Virginia recognizes an implied warranty of habitability in new residential construction under the... |
| Pennsylvania | Likely Unenforceable | Pennsylvania recognizes a strong implied warranty of habitability for new residential construction... |
| Maryland | Likely Unenforceable | Maryland provides strong implied warranty protections for new home buyers. The Maryland Court of... |
| Georgia | Likely Enforceable | Georgia's recognition of the implied warranty of habitability in new construction is limited. The... |
| Colorado | Likely Unenforceable | Colorado provides strong statutory protections for new home buyers through the Colorado Construction... |
Related Clauses in M/I Homes Contracts
This clause often works in combination with other provisions in M/I Homes's purchase agreements.
Disputes about the habitability waiver must be resolved in private arbitration, limiting the buyer's ability to challenge it in open court.
Prevents homeowners from jointly challenging habitability issues, forcing individual claims.
The liability cap reinforces the habitability waiver by capping damages even if the waiver is struck down.
The express warranty may be the buyer's only remedy if the habitability waiver is enforced, and warranty exclusions further narrow coverage.
What Buyers Can Do
- Check whether your state protects the implied warranty of habitability. In states with strong implied warranty protections, the waiver may not hold up in court. Your rights depend heavily on where the home is located.
- Request that the waiver be struck from the contract. M/I Homes may decline, but making the request in writing creates a record that you did not voluntarily agree to the waiver.
- Review the Acuity case. The Acuity v. M/I Homes of Chicago, LLC ruling may be relevant to your situation. If you are buying a M/I 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 M/I Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.