How Perry Homes Uses This Clause
Perry Homes purchase agreements have been documented to include class action lawsuit waiver provisions. Buyers waive the right to join or participate in class action lawsuits against the builder, forcing individual claims.
Class action waivers prevent buyers from pooling resources to pursue common claims. This can make it economically impractical for individual buyers to pursue smaller claims that would be viable as part of a class action.
Perry Homes operates exclusively in Texas and uses its own purchase agreement rather than the standard TREC form. The class action waiver typically appears alongside the mandatory arbitration clause.
Builder-Specific Details
Combined with Mandatory Arbitration
The class action waiver typically appears alongside a mandatory arbitration clause, creating a dual barrier to collective legal action.
Texas-Only Operations
Perry Homes operates exclusively in Texas. Class action waiver enforceability is evaluated under Texas law and the Federal Arbitration Act.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Perry Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Texas courts have generally upheld class action waivers in arbitration agreements. The Texas Arbitration Act and Federal Arbitration Act provide a strong framework for enforcement of class action waivers. |
Related Clauses in Perry Homes Contracts
This clause often works in combination with other provisions in Perry Homes's purchase agreements.
The class action waiver is typically embedded within or adjacent to the arbitration clause.
Deposit disputes that affect multiple buyers cannot be pursued collectively when a class action waiver is in place.
What Buyers Can Do
- Understand the practical impact of the class action waiver. Without the ability to join a class action, you must pursue claims individually. This can make it economically impractical to pursue smaller claims that would be viable as part of a larger group.
- Document issues from the start. If you experience construction defects, thorough documentation from the beginning strengthens an individual claim. Keep records of all communications, inspections, and repair attempts.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Perry Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.