How Stanley Martin Uses This Clause
Stanley Martin purchase agreements have been documented to include mandatory binding arbitration provisions. Stanley Martin uses the 2-10 Home Buyers Warranty (2-10 HBW), which designates arbitration as the final, binding method of dispute resolution. The warranty booklet specifies arbitration through programs dealing exclusively with the construction industry. Buyers should review whether the arbitration clause in their purchase agreement and warranty materials is enforceable under their state's law. Source: 2-10 HBW published arbitration procedures; Stanley Martin warranty page.
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 Deposit Forfeiture
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
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.
| State | Status | Note |
|---|---|---|
| Virginia | Likely Enforceable | Mandatory arbitration clauses in Virginia new construction contracts are likely enforceable.... |
| Maryland | Likely Enforceable | Mandatory arbitration clauses in Maryland new construction contracts are likely enforceable.... |
| Georgia | Likely Enforceable | Mandatory arbitration clauses in Georgia new construction contracts are likely enforceable. Georgia... |
Related Clauses in Stanley Martin Contracts
This clause often works in combination with other provisions in Stanley Martin's purchase agreements.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Even if an arbitrator finds in the buyer's favor, the liability cap may limit the award.
What Buyers Can Do
- Understand the arbitration process before signing. Review which arbitration provider is specified, who selects the arbitrator, and whether you have any right to appeal. These details significantly affect the fairness of the process.
- Research the arbitration provider's track record. The specified arbitration provider may have a history with builder disputes. Understanding the provider's procedures and typical outcomes can help you prepare.
- 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.