How PulteGroup Uses This Clause
PulteGroup purchase agreements have been documented to include limitation of liability / no monetary damages provisions. The purchase agreement and warranty limit the builder's liability for monetary damages arising from construction defects, delays, or contract breaches. Buyers may be limited to repair-only remedies under the warranty rather than monetary compensation, even when defects cause consequential losses such as temporary housing costs or diminished property value. This clause has been the subject of litigation, including Del Webb Sun City Grand (Construction Defects).
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
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
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.
Del Webb Sun City Grand (Construction Defects)
An arbitration brought by 460 homeowners in Sun City Grand, a Del Webb retirement community in Surprise, Arizona, resulted in a $13.6 million award ($7.9 million in damages, $5.7 million in legal costs). Defects alleged included defective windows, improperly installed stucco, expansive soil damage, cracking drywall, and deteriorating concrete foundations. In a related action, the Arizona Superior Court awarded $10.6 million to 279 additional Sun City Grand homeowners. The Arizona Court of Appeals upheld the judgment in 2015. Source: Builder Online; Construction Defect Journal.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects PulteGroup's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Uncertain | Texas courts generally enforce contractual liability limitations but subject them to... |
| Florida | Uncertain | Florida law imposes statutory protections for construction defect claims under Chapter 558 that may... |
| California | Likely Unenforceable | California provides strong statutory protections for homebuyers under the Right to Repair Act (SB... |
| Arizona | Uncertain | Arizona's Purchaser Dwelling Act provides statutory remedies for construction defects that exist... |
| Georgia | Uncertain | Georgia law permits contractual limitation of liability but subjects such clauses to... |
| North Carolina | Uncertain | North Carolina recognizes the implied warranty of habitability for new construction and has... |
| South Carolina | Likely Unenforceable | South Carolina courts have found similar builder contract provisions unconscionable. In Smith v.... |
| Colorado | Likely Unenforceable | Colorado's Construction Defect Action Reform Act (CDARA) and the Homeowner Protection Act of 2007... |
| Nevada | Likely Unenforceable | Nevada has among the strongest statutory protections for new home buyers in the nation. NRS Chapter... |
| Virginia | Uncertain | Virginia generally enforces contractual liability limitations but recognizes the implied warranty of... |
| Maryland | Uncertain | Maryland recognizes the implied warranty of habitability and has consumer protection statutes that... |
| Tennessee | Uncertain | Tennessee recognizes the implied warranty of habitability and has consumer protection statutes that... |
| Indiana | Uncertain | Indiana recognizes the implied warranty of habitability and has a specific statute addressing... |
| Ohio | Uncertain | Ohio recognizes the implied warranty of habitability and has consumer protection statutes that may... |
| Pennsylvania | Uncertain | Pennsylvania recognizes the implied warranty of habitability and has strong consumer protection... |
| New Jersey | Likely Unenforceable | New Jersey has among the strongest consumer protection frameworks in the nation. The New Home... |
| Minnesota | Likely Unenforceable | Minnesota has strong statutory protections for homebuyers including specific new home warranty... |
| Illinois | Likely Unenforceable | Illinois has strong consumer protection statutes and recognizes the implied warranty of... |
| Michigan | Uncertain | Michigan recognizes the implied warranty of habitability and fitness in new construction. The... |
| Washington | Likely Unenforceable | Washington has strong statutory protections for homebuyers under the Washington Building Code Act... |
| Utah | Uncertain | Utah has specific construction defect statutes that provide mandatory pre-litigation procedures.... |
| Alabama | Uncertain | Alabama recognizes the implied warranty of habitability for new construction and has consumer... |
| Connecticut | Likely Unenforceable | Connecticut has strong statutory new home warranty protections under the New Home Warranties Act... |
Related Clauses in PulteGroup Contracts
This clause often works in combination with other provisions in PulteGroup's purchase agreements.
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
Together these clauses eliminate both the legal standard (habitability) and the remedy (damages).
The damage cap limits recovery even for items covered by the express warranty.
What Buyers Can Do
- Understand what damages are excluded. The limitation may cover consequential damages, incidental damages, or all monetary damages beyond the purchase price. The scope of the limitation matters significantly.
- Ask whether the limitation applies to construction defects. Some liability limitations are drafted broadly enough to encompass defect claims. Clarify whether defect-related damages are capped or excluded.
- Review the Del Webb Sun City Grand (Construction Defects) case. The Del Webb Sun City Grand (Construction Defects) 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.