How Richmond American Homes Uses This Clause
Richmond American Homes's warranty program contains extensive exclusion lists that may narrow the scope of covered defects. Common issues such as cosmetic imperfections, drainage, settling, and certain HVAC performance concerns may fall outside the warranty's scope.
The warranty exclusions work in conjunction with the habitability waiver to replace broad statutory protections with the builder's more limited warranty program.
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
Replaces Implied Warranty Protections
When combined with the habitability waiver (HAB-001), the warranty exclusions define the total scope of the builder's obligations. Items not covered by the limited warranty — and also excluded from implied warranty protections — leave the buyer without recourse.
Climate-Specific Exclusions
Warranty exclusions may cover issues that are common in certain climates where Richmond American operates, such as settling in expansive soils (Colorado), stucco cracking in desert heat (Arizona, Nevada), or moisture-related issues in the Pacific Northwest (Oregon, Washington).
Legal History
The following cases involve Richmond American Homes's use of this clause type.
Colorado Construction Defect Litigation — Multiple Homeowner Actions
Construction defect claims against Richmond American in Colorado have involved disputes over warranty coverage and the scope of the builder's repair obligations. Warranty exclusions are a factor in determining which defects the builder is obligated to address.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Richmond American Homes's operating states.
| State | Status | Note |
|---|---|---|
| Colorado | Uncertain | Colorado's implied warranty of suitability may limit the effectiveness of warranty exclusions that attempt to disclaim coverage for habitability-related defects. |
| Arizona | Likely Enforceable | Warranty exclusion provisions in Arizona new construction contracts are generally enforceable, though the Arizona Registrar of Contractors process may provide additional avenues for complaints. |
| Nevada | Uncertain | Nevada's construction defect reform legislation has affected warranty-related claims. The enforceability of specific warranty exclusions depends on how they interact with the statutory framework. |
| California | Uncertain | California's SB 800 establishes specific building performance standards that may override contractual warranty exclusions for certain building components. |
| Oregon | Likely Enforceable | Warranty exclusion provisions in Oregon new construction contracts are generally enforceable, though Oregon's consumer protection statutes may provide additional remedies. |
| Washington | Likely Enforceable | Warranty exclusion provisions in Washington new construction contracts are generally enforceable, though Washington's Consumer Protection Act may provide additional remedies. |
| Utah | Likely Enforceable | Warranty exclusion provisions in Utah new construction contracts are generally enforceable consistent with general contract law principles. |
| Idaho | Likely Enforceable | Warranty exclusion provisions in Idaho new construction contracts are generally enforceable consistent with general contract law principles. |
| Florida | Uncertain | Florida's implied warranty protections and Chapter 558 construction defect framework may limit the scope of warranty exclusions that attempt to disclaim coverage for certain building components. |
| Maryland | Uncertain | Maryland's implied warranty protections and consumer protection framework may limit the scope of warranty exclusions in new construction contracts. |
| Virginia | Likely Enforceable | Warranty exclusion provisions in Virginia new construction contracts are generally enforceable, though Virginia's implied warranty framework may provide additional protections for certain defects. |
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.
Inspection restrictions may prevent buyers from identifying issues before they fall outside warranty coverage.
Substituted materials may have different warranty coverage than the originally specified products.
Items excluded from the warranty may also fall outside the scope of any liability the builder retains.
What Buyers Can Do
- Read the warranty exclusion list before signing. Identify every category of defect that is excluded from the builder's warranty. Pay particular attention to exclusions that are common in your local climate, such as settling, drainage, exterior system performance, and HVAC efficiency.
- Hire an independent inspector to document pre-closing conditions. A thorough inspection before closing can identify issues that may later be excluded from warranty coverage. Photograph and document the condition of all major systems and finishes.
- Understand the warranty claims process and deadlines. The warranty may impose specific notice requirements and deadlines for filing claims. Missing a deadline could result in the loss of coverage for an otherwise covered defect.
- 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.