Overview
| Market Position | One of the largest privately-held homebuilders in Texas |
| Type | Private |
| Headquarters | Houston, Texas |
| Founded | 1967 by Bob Perry |
| Markets | Houston, San Antonio, Austin, Dallas-Fort Worth |
| Affiliated Lender | Preferred lender relationships (no captive lender identified) |
| Annual Closings | Approximately 4,000–5,000 homes |
Perry Homes is one of Texas's largest privately-held homebuilders, headquartered in Houston, Texas. Founded in 1967 by Bob Perry, the company builds homes across Houston, San Antonio, Austin, and Dallas-Fort Worth. The builder has consistently ranked among the top homebuilders in Texas by volume.
Bob Perry, who passed away in 2013, was widely documented as one of the largest individual political donors in the United States. Perry Homes operates exclusively in Texas and uses its own purchase agreement rather than the standard TREC residential contract. The builder's contract terms and warranty provisions are documented through Texas state court litigation records and regulatory filings.
Documented Contract Patterns
The following patterns have been documented in Perry Homes purchase agreements. Not every contract contains every clause, and language varies by state and community.
Mandatory Binding Arbitration
Disputes must go to private arbitration instead of court. Buyers lose their right to a jury trial and in many cases the ability to appeal an unfavorable decision.
Class Action Lawsuit Waiver
Buyers waive the right to join or participate in class action lawsuits against the builder, forcing individual claims.
Deposit Forfeiture / Earnest Money Trap
The contract may allow the builder to retain the buyer's earnest money deposit if the buyer cancels for reasons not explicitly covered by the agreement.
Implied Warranty of Habitability Waiver
The contract may ask buyers to waive their legal right to a home that meets basic livability standards.
Daily Closing Penalty
If the buyer cannot close by the specified date, the contract imposes per-day financial penalties.
Independent Inspection Restriction
The contract limits when, how, or whether the buyer can hire an independent home inspector.
Material Substitution at Builder's Discretion
The builder reserves the right to substitute materials with alternatives deemed substantially equivalent.
Restrictive Limited Warranty Exclusions
The builder's warranty contains extensive exclusion lists that carve out common defect categories.
Legal History
Selected cases and investigations involving Perry Homes construction quality, contract enforcement, and lending practices.
Perry Homes v. Cull
The Texas Supreme Court addressed whether Perry Homes waived its right to compel arbitration by substantially invoking the judicial process. The court held that Perry Homes had waived its arbitration right through extensive participation in litigation, establishing an important precedent for arbitration waiver analysis in Texas construction disputes.
Perry Homes Construction Defect Claims (Texas)
Multiple homeowners have filed construction defect claims against Perry Homes under the Texas Residential Construction Liability Act (RCLA). These claims follow the statutory framework requiring 60 days' written notice and an opportunity to inspect and repair before litigation.
What Buyers Should Know
- Review the arbitration clause carefully. Perry Homes contracts may include mandatory arbitration provisions. The Texas Supreme Court addressed Perry Homes' arbitration practices in Perry Homes v. Cull (2008). Understand that signing an arbitration clause means waiving your right to a jury trial.
- Hire an independent home inspector. Request access at pre-drywall, pre-closing, and final walkthrough stages regardless of contract restrictions.
- Know the RCLA process before you close. Texas law requires 60 days' written notice to the builder before filing suit for construction defects. The builder has the right to inspect and offer repairs. Understand this process in advance.
- Compare lender offers independently. Perry Homes may offer incentives tied to preferred lender relationships. Get quotes from at least two independent lenders and compare total loan costs before deciding.
- Have a Texas real estate attorney review the contract. Perry Homes uses its own purchase agreement, not the standard TREC form. An attorney can identify warranty limitations, deposit forfeiture terms, and dispute-resolution clauses that may limit your rights.
Detailed Clause Analysis
Deep-dive analysis of how Perry Homes uses specific contract clauses:
State-Specific Guides
See how Perry Homes's contract patterns interact with the laws in your state: