Overview
| Market Position | South Carolina custom and semi-custom homebuilder |
| Type | Private |
| Headquarters | Mount Pleasant, South Carolina |
| Founded | 2004 |
| Annual Closings | Approximately 200–400 homes |
| Brands | Sabal Homes |
Sabal Homes is a privately held custom and semi-custom homebuilder headquartered in Mount Pleasant, South Carolina. Founded in 2004, the company operates exclusively in the South Carolina Lowcountry region, building homes in Charleston, Mount Pleasant, and Summerville. Sabal closes approximately 200 to 400 homes per year.
South Carolina is a particularly important state for new construction contract analysis. The South Carolina Supreme Court's 2016 decision in Smith v. D.R. Horton, Inc. found several standard builder contract provisions unconscionable, including habitability waivers and broad liability limitations. This precedent affects all South Carolina builders, including Sabal Homes, and may impact the enforceability of similar provisions in Sabal's contracts.
Documented Contract Patterns
The following patterns have been documented in Sabal Homes purchase agreements. Not every contract contains every clause, and language varies by state and community.
Mandatory Binding Arbitration
Disputes must go to private arbitration instead of court. Buyers lose their right to a jury trial and in many cases the ability to appeal an unfavorable decision.
Class Action Lawsuit Waiver
Buyers waive the right to join or participate in class action lawsuits against the builder, forcing individual claims.
Deposit Forfeiture / Earnest Money Trap
The contract may allow the builder to retain the buyer's earnest money deposit if the buyer cancels for reasons not explicitly covered by the agreement.
Implied Warranty of Habitability Waiver
The contract may ask buyers to waive their legal right to a home that meets basic livability standards. The South Carolina Supreme Court found a similar provision unconscionable in Smith v. D.R. Horton, Inc. (2016).
Daily Closing Penalty
If the buyer cannot close by the specified date, the contract imposes per-day financial penalties.
Independent Inspection Restriction
The contract limits when, how, or whether the buyer can hire an independent home inspector.
Material Substitution at Builder's Discretion
The builder reserves the right to substitute materials with alternatives deemed substantially equivalent.
Restrictive Limited Warranty Exclusions
The builder's warranty contains extensive exclusion lists that carve out common defect categories.
Legal History
Selected cases and investigations involving Sabal Homes construction quality, contract enforcement, and lending practices.
What Buyers Should Know
- Know the Smith v. D.R. Horton precedent. The South Carolina Supreme Court found several standard builder contract provisions unconscionable in Smith v. D.R. Horton, Inc. (2016). This precedent may affect the enforceability of similar provisions in Sabal Homes contracts, including habitability waivers and broad liability limitations.
- Understand that habitability waivers may be unenforceable in South Carolina. South Carolina courts have held that the implied warranty of habitability cannot be waived by contract when there is a significant disparity in bargaining power between the builder and buyer.
- Comply with the right-to-repair notice requirement. South Carolina law (S.C. Code Section 40-59-840 et seq.) requires written notice to the builder before filing a construction defect lawsuit. Document all defects carefully and send notice via certified mail.
- Hire an independent home inspector. Request access at pre-drywall, pre-closing, and final walkthrough stages regardless of contract restrictions. An independent inspector can identify construction issues while you still have negotiating leverage.
- Have a South Carolina real estate attorney review the contract. Sabal Homes uses its own purchase agreement. An attorney familiar with the Smith v. D.R. Horton precedent can identify which provisions in your contract may be unenforceable under current South Carolina law.
Detailed Clause Analysis
Deep-dive analysis of how Sabal Homes uses specific contract clauses:
State-Specific Guides
See how Sabal Homes's contract patterns interact with the laws in your state: