How Shea Homes Uses This Clause
Shea Homes purchase agreements have been documented to include implied warranty of habitability waiver provisions. Shea Homes provides a limited warranty through its 1-5-11 Service Program with scheduled warranty appointments at one, five, and eleven months post-closing. The limited warranty may serve as the buyer's exclusive remedy, potentially displacing implied warranties of habitability or fitness. In California, SB 800 (the Right to Repair Act) provides the builder with a right to repair defects before homeowners may pursue litigation. Buyers should verify whether their state permits waiver of implied warranties in new-construction contracts.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
As a builder operating in the upper price segments, Shea Homes buyers may have somewhat more leverage to negotiate contract terms compared to entry-level buyers. However, the presence of this clause in standard purchase agreements means buyers should review it carefully regardless of price point.
Builder-Specific Details
Combined with Mandatory Arbitration
Disputes about the habitability waiver must be resolved in private arbitration, limiting the buyer's ability to challenge it in open court.
Negotiation Potential
Shea Homes operates in higher price segments where buyers may have more leverage to negotiate individual contract terms. While the clause appears in standard templates, buyers of custom or semi-custom homes may have more room to request modifications.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Shea Homes's operating states.
| State | Status | Note |
|---|---|---|
| California | Likely Unenforceable | California provides strong statutory protections for homebuyers through the Right to Repair Act... |
| Arizona | Uncertain | Arizona recognizes an implied warranty of habitability in new home construction, established in... |
| Colorado | Likely Unenforceable | Colorado provides strong statutory protections for new home buyers through the Colorado Construction... |
| Washington | Likely Unenforceable | Washington recognizes an implied warranty of habitability for new residential construction under... |
| North Carolina | Uncertain | North Carolina recognizes an implied warranty of habitability in new home construction, established... |
| Florida | Likely Unenforceable | Florida recognizes an implied warranty of habitability for newly constructed homes, established by... |
Related Clauses in Shea Homes Contracts
This clause often works in combination with other provisions in Shea Homes's purchase agreements.
Disputes about the habitability waiver must be resolved in private arbitration, limiting the buyer's ability to challenge it in open court.
Prevents homeowners from jointly challenging habitability issues, forcing individual claims.
The liability cap reinforces the habitability waiver by capping damages even if the waiver is struck down.
The express warranty may be the buyer's only remedy if the habitability waiver is enforced, and warranty exclusions further narrow coverage.
What Buyers Can Do
- Check whether your state protects the implied warranty of habitability. In states with strong implied warranty protections, the waiver may not hold up in court. Your rights depend heavily on where the home is located.
- Request that the waiver be struck from the contract. Shea Homes may decline, but making the request in writing creates a record that you did not voluntarily agree to the waiver.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Shea Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.