How M/I Homes Uses This Clause
M/I Homes purchase agreements have been documented to include material substitution at builder's discretion provisions. The builder may reserve the right to substitute materials, appliances, or fixtures with alternatives deemed equivalent at the builder's sole discretion without requiring buyer approval. This is standard in new-construction contracts but may result in buyers receiving different products than what was specified during the design selection process. 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 Warranty Exclusions
Substituted materials may not be covered under the same warranty terms as originally specified materials.
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 | Likely Enforceable | Material substitution clauses in Ohio new construction contracts are likely enforceable. Ohio courts... |
| Indiana | Likely Enforceable | Material substitution clauses in Indiana new construction contracts are likely enforceable. Indiana... |
| Michigan | Likely Enforceable | Material substitution clauses in Michigan new construction contracts are likely enforceable.... |
| Illinois | Uncertain | The enforceability of material substitution clauses in Illinois new construction contracts is... |
| North Carolina | Likely Enforceable | Material substitution clauses in North Carolina new construction contracts are likely enforceable.... |
| South Carolina | Likely Enforceable | Material substitution clauses in South Carolina new construction contracts are likely enforceable.... |
| Florida | Likely Enforceable | Material substitution clauses in Florida new construction contracts are likely enforceable. Florida... |
| Texas | Likely Enforceable | Material substitution clauses in Texas new construction contracts are likely enforceable. Texas law... |
| Tennessee | Likely Enforceable | Material substitution clauses in Tennessee new construction contracts are likely enforceable.... |
| Minnesota | Uncertain | The enforceability of material substitution clauses in Minnesota new construction contracts is... |
| Virginia | Likely Enforceable | Material substitution clauses in Virginia new construction contracts are likely enforceable.... |
| Pennsylvania | Uncertain | The enforceability of material substitution clauses in Pennsylvania new construction contracts is... |
| Maryland | Uncertain | The enforceability of material substitution clauses in Maryland new construction contracts is... |
| Georgia | Likely Enforceable | Material substitution clauses in Georgia new construction contracts are likely enforceable. Georgia... |
| Colorado | Uncertain | The enforceability of material substitution clauses in Colorado new construction contracts is... |
Related Clauses in M/I Homes Contracts
This clause often works in combination with other provisions in M/I Homes's purchase agreements.
Substituted materials may not be covered under the same warranty terms as originally specified materials.
Inspection restrictions make it harder to verify whether substituted materials meet the promised standards.
What Buyers Can Do
- Get your selections in writing. Ensure all material selections, finishes, and specifications are documented in the purchase agreement or an addendum, not just shown in a model home.
- Ask about the substitution notification process. Determine whether M/I Homes is required to notify you before making substitutions, or whether you discover changes only at closing or after move-in.
- 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.