How Sabal Homes Uses This Clause
Sabal Homes purchase agreements have been documented to include implied warranty of habitability waiver provisions. The contract may ask buyers to waive their legal right to a home that meets basic livability standards, replacing this protection with the builder's own limited express warranty. The South Carolina Supreme Court found a similar provision unconscionable in Smith v. D.R. Horton, Inc. (2016).
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
As a Lowcountry regional builder operating in Charleston, Mount Pleasant, and Summerville, Sabal Homes' contract templates are generally consistent across its markets.
Builder-Specific Details
Combined with Warranty Exclusions
The habitability waiver works in conjunction with warranty exclusions to narrow the scope of defects the builder is obligated to address.
Smith v. D.R. Horton Precedent
The South Carolina Supreme Court found a habitability waiver unconscionable in Smith v. D.R. Horton, Inc. (2016), citing the extreme imbalance of bargaining power. This precedent may render similar provisions in Sabal Homes contracts unenforceable.
Standard Form Contract
This clause appears in Sabal Homes' 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 Sabal Homes's use of this clause type.
Smith v. D.R. Horton, Inc.
The South Carolina Supreme Court found the builder's waiver of the implied warranty of habitability was unconscionable, citing an extreme imbalance of bargaining power between the national builder and individual homebuyers.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Sabal Homes's operating states.
| State | Status | Note |
|---|---|---|
| South Carolina | Likely Unenforceable | Implied warranty of habitability waivers in South Carolina new construction contracts are likely unenforceable following Smith v. D.R. Horton, Inc. (2016). The South Carolina Supreme Court found such waivers unconscionable when there is a significant disparity in bargaining power between the builder and buyer. This precedent applies to all South Carolina builders. |
Related Clauses in Sabal Homes Contracts
This clause often works in combination with other provisions in Sabal Homes's purchase agreements.
The habitability waiver and warranty exclusions together narrow the scope of defects the builder must address.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
What Buyers Can Do
- Understand that this waiver may be unenforceable in South Carolina. The South Carolina Supreme Court found a similar habitability waiver unconscionable in Smith v. D.R. Horton, Inc. (2016). Even if this clause appears in your contract, South Carolina courts may decline to enforce it.
- Compare the express warranty to what you are waiving. Review the builder's express warranty carefully. If it is narrower than the implied warranty of habitability, the Smith precedent may provide you with stronger protections than the contract terms alone suggest.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Sabal Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.