Overview
| Market Position | Top-ten U.S. public homebuilder by revenue |
| Stock Ticker | NYSE: TMHC |
| Headquarters | Scottsdale, Arizona |
| Founded | 2007 (as Taylor Morrison; roots trace to Taylor Woodrow plc, est. 1921) |
| Affiliated Lender | Taylor Morrison Home Funding, Inc. (NMLS #8588) |
| Affiliated Title Company | Inspired Title Services |
| FY2025 Closings | 12,997 homes at an average sales price of $597,000 |
| FY2025 Revenue | $7.76 billion (home closings revenue) |
| FY2025 Net Income | $783 million reported; $830 million adjusted |
| Violation Tracker Penalties | $920,615 across 10 records (Good Jobs First) |
| BBB Accreditation | Accredited since November 2023; A+ rating across multiple divisions |
Taylor Morrison Home Corporation is a publicly traded homebuilder headquartered in Scottsdale, Arizona, that designs, builds, and sells single-family and multi-family homes across the United States. The company traces its lineage to British construction firm Taylor Woodrow plc and became an independent U.S. entity in 2007. It went public on the New York Stock Exchange in 2013. In 2018, Taylor Morrison acquired AV Homes in a transaction valued at approximately $963 million, adding active-adult communities in Florida and Arizona to its portfolio.
Taylor Morrison operates affiliated service providers including Taylor Morrison Home Funding, Inc. (in-house mortgage lending) and Inspired Title Services. The company's Affiliated Business Arrangement (ABA) disclosure states that buyers are not required to use Taylor Morrison Home Funding as a condition of purchase. Good Jobs First's Violation Tracker database records $920,615 in total penalties across 10 entries for Taylor Morrison Home Corporation. The company's 2025 10-K filing discloses an expected liability of approximately $55 million related to the Solivita club membership fee class action inherited through its AV Homes acquisition.
Documented Contract Patterns
The following patterns have been documented in Taylor Morrison purchase agreements. Not every contract contains every clause, and language varies by state and community.
Mandatory Binding Arbitration
Taylor Morrison purchase agreements include a broad arbitration provision requiring resolution of 'any and all claims, controversies, breaches or disputes' related to the purchase agreement and property. In Taylor Morrison of Texas v. Ha (2023) and Taylor Morrison of Texas v. Skufca (2023), the Texas Supreme Court upheld these clauses and extended their reach to non-signatory family members under direct-benefits estoppel, ruling that minor children living in the home could be compelled to arbitrate construction defect claims.
Class Action Waiver
The arbitration provisions in Taylor Morrison's purchase agreements may include a waiver of the right to participate in class action proceedings. This forces buyers to pursue claims individually through arbitration, which can be cost-prohibitive for defects or fee disputes affecting entire communities or subdivisions.
Deposit Forfeiture / Earnest Money Trap
Taylor Morrison contracts may characterize earnest money deposits as non-refundable upon buyer non-performance, with the deposit treated as liquidated damages. Legal Q&A responses from licensed attorneys document cases where Taylor Morrison retained deposits of $7,500 to $20,000 when buyers failed to close, including situations involving financing contingency windows as short as 45 days.
Tiered Limited Warranty with Exclusions
Taylor Morrison provides a limited home warranty typically structured as: one year for workmanship and materials, two years for mechanical systems (plumbing, electrical), and ten years for major structural defects. The warranty contains exclusions for homeowner-caused damage, cosmetic defects, water damage, natural occurrences, and consequential damages. In Wiener v. Taylor Morrison Services (Fla. DCA, 2019), the court reversed a trial court's order compelling arbitration, finding that the homeowner's stucco defect claims fell outside the specific coverage limitations of the ten-year structural warranty.
Warranty Voiding Through Inspection Deterrence
In 2024, Taylor Morrison filed a complaint with Arizona's State Board of Technical Registration seeking disciplinary action and video removal against a home inspector whose social media posts documented construction defects in Taylor Morrison homes. The Board found no verifiable violations by the inspector and declined to take disciplinary action. The incident was reported by 12News (KPNX Phoenix) and AZ Free News.
Affiliated Lender Steering Incentives
Taylor Morrison offers financial incentives — such as closing cost credits and rate buydowns — conditioned on using Taylor Morrison Home Funding. The company's ABA disclosure states buyers are not required to use the affiliated lender, but the incentive structure can make outside financing significantly more expensive. Inspired Title Services, the affiliated title company, has generated over $20 million in gross revenue across nine states.
Implied Warranty of Habitability Waiver
Taylor Morrison's purchase agreement may contain language disclaiming implied warranties, including the implied warranty of habitability, substituting the builder's own limited warranty program. Enforceability varies by jurisdiction; several states have held such waivers unconscionable in residential new-construction contracts.
Limitation of Liability / Consequential Damages Exclusion
The contract and warranty documents may exclude consequential damages — such as temporary housing costs, loss of use, or diminished property value — resulting from construction defects or delays. The limited warranty explicitly excludes coverage for consequential damages. In an arbitration involving Taylor Morrison, the builder offered approximately $20,000 in repairs while the arbitrator's final award was $207,481, illustrating the gap between builder repair offers and actual damages.
Material Substitution at Builder's Discretion
The builder reserves the right to substitute materials, fixtures, or appliances with alternatives deemed equivalent at the builder's sole discretion. Buyers may receive different products than those shown in the model home or specified during the selection process, with no recourse if the substitution is within the contract's allowance.
Non-Assignability Without Builder Consent
Taylor Morrison's purchase agreement provides that it may not be assigned without the prior written consent of Taylor Morrison. This restricts a buyer's ability to transfer contract rights and may limit options if circumstances change before closing.
Legal History
Selected cases and investigations involving Taylor Morrison construction quality, contract enforcement, and lending practices.
Taylor Morrison of Texas v. Ha
Homeowners sued Taylor Morrison alleging their home developed significant mold problems due to construction defects. Taylor Morrison moved to compel arbitration, including against the homeowners' minor children who were non-signatories. The Texas Supreme Court reversed the lower courts and held that minor children living in the home could be compelled to arbitrate under direct-benefits estoppel because their claims were factually intertwined with the purchase agreement. (660 S.W.3d 529)
Taylor Morrison of Texas v. Skufca
Homeowners alleged that less than a year after moving in, their home developed mold issues causing their minor children to become ill. In a companion ruling to Ha, the Texas Supreme Court reversed the Court of Appeals and compelled the minor children to arbitrate along with their parents, reinforcing that family members living in the home are bound by the purchase agreement's arbitration clause through direct-benefits estoppel.
Taylor Morrison of Texas v. Kohlmeyer
A subsequent home purchaser sued Taylor Morrison for construction defects. The appellate court rejected Taylor Morrison's motion to compel arbitration, finding that the theories of direct-benefits estoppel and implied assumption did not permit the builder to bind a subsequent purchaser to the mandatory arbitration clause in the original purchase agreement.
Wiener v. Taylor Morrison Services, Inc.
Homeowners alleged that stucco installation on their residence violated the Florida Building Code. The trial court ordered arbitration, but the appellate court reversed, holding that the homeowners' stucco defect claims fell outside the scope of the ten-year structural warranty's arbitration clause. The court ruled the plain language of the warranty determines which issues are arbitrable.
Alaqua Lakes Community Association v. Taylor Morrison
A homeowners' association sued Taylor Morrison for negligent design and construction of roadways and drainage systems. A jury awarded $3.8 million, and the court entered a final judgment of $7,287,782.13 after adding approximately $3.4 million in pre-judgment interest dating back to 2004.
Solivita Club Membership Fee Class Action (Avatar / AV Homes)
A class action complaint filed in 2017 against Avatar Properties (acquired by Taylor Morrison via AV Homes in 2018) alleged that collection of club membership fees at the Solivita community violated Florida homeowner association laws. In November 2021, the trial court awarded nearly $35 million in reimbursements. Taylor Morrison's 10-K filing disclosed an expected liability of approximately $55 million. In February 2026, the parties reached a settlement of $22.6 million to resolve all remaining disputes.
Arizona SBTR Complaint Against Home Inspector
Taylor Morrison filed a complaint with Arizona's State Board of Technical Registration seeking disciplinary action and video removal against home inspector Cy Porter, whose social media posts documented construction defects in Taylor Morrison homes. The Board voted against disciplinary action and found no evidence the inspector falsified information. The Board issued only a non-disciplinary letter of concern. Reported by 12News (KPNX) and AZ Free News.
What Buyers Should Know
- Understand the arbitration clause before signing. Taylor Morrison purchase agreements contain a broad mandatory arbitration clause. The Texas Supreme Court upheld and expanded its reach in two 2023 decisions, compelling even minor children to arbitrate. Review whether the clause is enforceable in your state and whether you can negotiate its removal or modification.
- Hire an independent home inspector before closing. In 2024, Taylor Morrison filed a regulatory complaint against an Arizona home inspector who publicly documented defects found in new-construction homes. The complaint was dismissed. Most states protect a buyer's right to independent inspection. Document any resistance from the builder in writing.
- Know your earnest money refund rights. Taylor Morrison contracts may treat deposits as non-refundable liquidated damages with narrow refund windows. Understand under what circumstances — including financing contingencies — you may be entitled to a refund under your state's consumer protection statutes.
- Compare Taylor Morrison Home Funding with outside lenders. The builder offers closing cost credits and rate buydowns conditioned on using its affiliated lender. Compare rates, fees, and loan terms with at least two independent lenders. Verify that any quoted monthly payment includes taxes, insurance, and HOA assessments.
- Review warranty tiers, exclusions, and the claims process. The limited warranty is structured in one-year, two-year, and ten-year tiers with extensive exclusions including consequential damages, cosmetic defects, and water damage. All warranty claims must be submitted in writing through the builder's portal. Understand what is excluded before closing.
- Research the community's litigation history. Taylor Morrison has faced significant community-level disputes including a $7.3 million judgment for roadway and drainage defects at Alaqua Lakes and a $55 million club membership fee liability at Solivita. Check county court records and HOA meeting minutes for pending or resolved disputes in your target community.
- Consider a professional contract review. An independent review by a real estate attorney or contract analysis service can identify clauses that limit your remedies, waive implied warranties, or restrict your ability to assign the contract — provisions that may not be obvious on a first read.