How PulteGroup Uses This Clause
PulteGroup purchase agreements have been documented to include class action lawsuit waiver provisions. Buyers waive the right to institute or participate in any class action arbitration for matters covered by the arbitration provision. This forces each buyer to pursue claims individually, which can be cost-prohibitive for systemic defects affecting entire communities. In Bernstein v. Pulte Home Company, LLC (D.S.C., 2019), Pulte moved to compel individual arbitration against homeowners alleging community-wide foundation defects in Sun City Carolina Lakes. This clause has been the subject of litigation, including Bernstein v. Pulte Home Company, LLC.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because PulteGroup operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
PulteGroup'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
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Standardized Across Markets
PulteGroup's scale means contract templates are largely standardized across its operations. This clause identified in one state's contract is likely present in other states' contracts, though local addenda may modify the terms.
Standard Form Contract
This clause appears in PulteGroup'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 PulteGroup's use of this clause type.
Bernstein v. Pulte Home Company, LLC
Residents of Sun City Carolina Lakes, a community of approximately 3,000 homes in Indian Land, South Carolina, filed a proposed class action alleging that Pulte was negligent in overseeing construction on poorly compacted soils and ill-designed grading, resulting in excessive foundation movement, slab cracking, and separation. The complaint alleged Pulte failed to disclose the defects and that its practices violated South Carolina's Unfair Trade Practices Act. Pulte moved to compel individual arbitration. Source: ClassAction.org; U.S. District Court docket.
Shah v. Pulte Home Corporation (Copper Pipe Defects)
A class action involving homeowners in certain California subdivisions who alleged defective copper pipe installation resulting in pinhole leaks. The settlement class included 39 original purchasers (Arbitration Owner Subclass) and 112 subsequent owners (Non-Arbitration Owner Subclass). Deposition testimony from a Pulte contractor indicated awareness of pinhole leak problems for years before the homes were built. Source: shahcopperpipeclassaction.com.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects PulteGroup's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Class action waivers in Texas new construction contracts are likely enforceable, particularly when... |
| Florida | Likely Enforceable | Class action waivers in Florida new construction contracts are likely enforceable when included in... |
| California | Likely Enforceable | Class action waivers in California new construction contracts are likely enforceable when paired... |
| Arizona | Likely Enforceable | Class action waivers in Arizona new construction contracts are likely enforceable, particularly when... |
| Georgia | Likely Enforceable | Class action waivers in Georgia new construction contracts are likely enforceable, particularly when... |
| North Carolina | Likely Enforceable | Class action waivers in North Carolina new construction contracts are likely enforceable when paired... |
| South Carolina | Likely Enforceable | Class action waivers in South Carolina new construction contracts are likely enforceable when paired... |
| Colorado | Likely Enforceable | Class action waivers in Colorado new construction contracts are likely enforceable when paired with... |
| Nevada | Likely Enforceable | Class action waivers in Nevada new construction contracts are likely enforceable when included in... |
| Virginia | Likely Enforceable | Class action waivers in Virginia new construction contracts are likely enforceable when paired with... |
| Maryland | Likely Enforceable | Class action waivers in Maryland new construction contracts are likely enforceable when paired with... |
| Tennessee | Likely Enforceable | Class action waivers in Tennessee new construction contracts are likely enforceable when paired with... |
| Indiana | Likely Enforceable | Class action waivers in Indiana new construction contracts are likely enforceable when included in... |
| Ohio | Likely Enforceable | Class action waivers in Ohio new construction contracts are likely enforceable when included in... |
| Pennsylvania | Likely Enforceable | Class action waivers in Pennsylvania new construction contracts are likely enforceable when paired... |
| New Jersey | Likely Enforceable | Class action waivers in New Jersey new construction contracts are likely enforceable when paired... |
| Minnesota | Likely Enforceable | Class action waivers in Minnesota new construction contracts are likely enforceable when paired with... |
| Illinois | Likely Enforceable | Class action waivers in Illinois new construction contracts are likely enforceable when paired with... |
| Michigan | Likely Enforceable | Class action waivers in Michigan new construction contracts are likely enforceable when paired with... |
| Washington | Likely Enforceable | Class action waivers in Washington new construction contracts are likely enforceable when paired... |
| Utah | Likely Enforceable | Class action waivers in Utah new construction contracts are likely enforceable when paired with... |
| Alabama | Likely Enforceable | Class action waivers in Alabama new construction contracts are likely enforceable when paired with... |
| Connecticut | Likely Enforceable | Class action waivers in Connecticut new construction contracts are likely enforceable when paired... |
Related Clauses in PulteGroup Contracts
This clause often works in combination with other provisions in PulteGroup's purchase agreements.
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Homeowners with similar habitability defects cannot combine their claims into a single action.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
What Buyers Can Do
- Understand what the class action waiver means for community-wide issues. If multiple homes in your community have the same defect, this clause prevents you from joining together to pursue a shared claim. Each buyer must pursue their claim individually.
- Document everything from the start. If you cannot join a class action, your individual claim must stand on its own. Thorough documentation from before and after closing strengthens your position.
- Review the Bernstein case. The Bernstein v. Pulte Home Company, LLC ruling may be relevant to your situation. If you are buying a PulteGroup 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 PulteGroup contracts that collectively limit buyer remedies. A contract scan can identify all of them.