criticalDAM-001

Stanley Martin: Liability Limitation

Contract clause analysis

How Stanley Martin Uses This Clause

Stanley Martin purchase agreements have been documented to include limitation of liability / no monetary damages provisions. Builder contracts commonly limit or eliminate liability for consequential, incidental, or special damages. Even if the builder is found at fault for defects or delays, the buyer's recoverable damages may be capped or excluded entirely. Buyers should review any damage limitation provisions carefully before signing.

This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.

Stanley Martin's scale 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 Mandatory Arbitration

Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.

Standard Form Contract

This clause appears in Stanley Martin'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.

State-by-State Enforceability

Enforceability of this clause varies by state. The following reflects Stanley Martin's operating states.

StateStatusNote
VirginiaUncertainVirginia generally enforces contractual liability limitations but recognizes the implied warranty of...
MarylandUncertainMaryland recognizes the implied warranty of habitability and has consumer protection statutes that...
GeorgiaUncertainGeorgia law permits contractual limitation of liability but subjects such clauses to...

Related Clauses in Stanley Martin Contracts

This clause often works in combination with other provisions in Stanley Martin's purchase agreements.

ARB-001Mandatory Arbitration

Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.

HAB-001Habitability Waiver

Together these clauses eliminate both the legal standard (habitability) and the remedy (damages).

WAR-001Warranty Exclusions

The damage cap limits recovery even for items covered by the express warranty.

CLA-001Class Action Waiver

Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.

What Buyers Can Do

  • Understand what damages are excluded. The limitation may cover consequential damages, incidental damages, or all monetary damages beyond the purchase price. The scope of the limitation matters significantly.
  • Ask whether the limitation applies to construction defects. Some liability limitations are drafted broadly enough to encompass defect claims. Clarify whether defect-related damages are capped or excluded.
  • Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Stanley Martin contracts that collectively limit buyer remedies. A contract scan can identify all of them.
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This article is for informational and educational purposes only. It does not constitute legal advice. Consult a licensed attorney in your state before making legal decisions.