How Richmond American Homes Uses This Clause
Richmond American Homes purchase agreements have included language disclaiming implied warranties, including the implied warranty of habitability, substituting the builder's own limited warranty program. This provision attempts to replace broad statutory and common law protections with a narrower set of builder-defined obligations.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies, including the mandatory arbitration clause and liability limitation.
Richmond American Homes's scale as a subsidiary of MDC Holdings 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 Limited Warranty Program
By waiving implied warranties, the builder substitutes its own limited warranty with defined exclusions, coverage periods, and claims procedures that may be significantly narrower than statutory protections.
Standard Form Contract
This clause appears in Richmond American 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 Richmond American Homes's use of this clause type.
Colorado Construction Defect Litigation — Multiple Homeowner Actions
Richmond American Homes and MDC Holdings have been named in construction defect lawsuits in Colorado where implied warranty protections are relevant to the claims. Colorado courts have recognized an implied warranty of suitability for new residential construction.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Richmond American Homes's operating states.
| State | Status | Note |
|---|---|---|
| Colorado | Likely Unenforceable | Colorado courts recognize an implied warranty of suitability for new residential construction that cannot be easily disclaimed. Habitability waivers in new-home contracts face significant enforceability challenges. |
| Arizona | Uncertain | Arizona law regarding the disclaimability of implied warranties in new residential construction is evolving. The enforceability of this clause depends on the specific contract language and circumstances. |
| Nevada | Uncertain | Nevada's construction defect reform legislation has affected warranty-related claims. The enforceability of implied warranty waivers in new construction depends on the specific statutory framework. |
| California | Likely Unenforceable | California provides strong implied warranty protections for new residential construction. Courts have been reluctant to allow builders to disclaim implied warranties in new-home sales. |
| Oregon | Uncertain | Oregon's implied warranty framework and consumer protection statutes may limit the enforceability of habitability waivers in new residential construction contracts. |
| Washington | Uncertain | Washington's implied warranty protections and Consumer Protection Act may limit the enforceability of habitability waivers in new residential construction. |
| Utah | Likely Enforceable | Utah courts have generally permitted contractual modifications to implied warranty protections in construction contracts, though unconscionability challenges remain possible. |
| Idaho | Likely Enforceable | Idaho courts have generally enforced contractual warranty limitations in construction contracts consistent with general contract law principles. |
| Florida | Uncertain | Florida recognizes implied warranties of fitness and merchantability in new construction. The enforceability of waivers depends on the specific contract language and whether courts find the waiver unconscionable. |
| Maryland | Likely Unenforceable | Maryland provides implied warranty protections for new residential construction. Courts have been protective of buyer warranty rights, and waivers may face enforceability challenges. |
| Virginia | Uncertain | Virginia recognizes implied warranties in new residential construction under common law. The enforceability of contractual waivers depends on the specific terms and circumstances. |
Related Clauses in Richmond American Homes Contracts
This clause often works in combination with other provisions in Richmond American Homes's purchase agreements.
The warranty exclusions define the scope of the builder's limited warranty that replaces the waived implied warranties.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Even if the waiver fails, the liability limitation may cap the damages a buyer can recover.
Inspection restrictions may prevent buyers from identifying habitability issues before closing.
What Buyers Can Do
- Research your state's implied warranty protections. Several states where Richmond American operates — including Colorado, California, and Maryland — provide strong implied warranty protections that may not be waivable. Understand your state's law before accepting the waiver.
- Request removal of the habitability waiver in writing. Even if the builder declines, having a written record that you objected to the waiver may be relevant if the clause's enforceability is later challenged.
- Review the builder's limited warranty carefully. If the implied warranty waiver is enforceable in your state, the builder's limited warranty becomes your primary protection. Understand the exclusions, coverage periods, and claims procedures.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Richmond American contracts that collectively limit buyer remedies. A contract scan can identify all of them.