How Taylor Morrison Uses This Clause
Taylor Morrison purchase agreements have been documented to include class action lawsuit waiver provisions. 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. This clause has been the subject of litigation, including Solivita Club Membership Fee Class Action (Avatar / AV Homes).
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Taylor Morrison'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
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Standard Form Contract
This clause appears in Taylor Morrison'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.
Legal History
The following cases involve Taylor Morrison's use of this clause type.
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.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Taylor Morrison's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Class action waivers in Texas new construction contracts are likely enforceable, particularly when... |
| Florida | Likely Enforceable | Class action waivers in Florida new construction contracts are likely enforceable when included in... |
| Arizona | Likely Enforceable | Class action waivers in Arizona new construction contracts are likely enforceable, particularly when... |
| California | Likely Enforceable | Class action waivers in California new construction contracts are likely enforceable when paired... |
| Colorado | Likely Enforceable | Class action waivers in Colorado new construction contracts are likely enforceable when paired with... |
| Georgia | Likely Enforceable | Class action waivers in Georgia new construction contracts are likely enforceable, particularly when... |
| North Carolina | Likely Enforceable | Class action waivers in North Carolina new construction contracts are likely enforceable when paired... |
| Oregon | Likely Enforceable | Class action waivers in Oregon new construction contracts are likely enforceable when paired with... |
| Washington | Likely Enforceable | Class action waivers in Washington new construction contracts are likely enforceable when paired... |
| Nevada | Likely Enforceable | Class action waivers in Nevada new construction contracts are likely enforceable when included in... |
Related Clauses in Taylor Morrison Contracts
This clause often works in combination with other provisions in Taylor Morrison's purchase agreements.
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Homeowners with similar habitability defects cannot combine their claims into a single action.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
What Buyers Can Do
- Understand what the class action waiver means for community-wide issues. If multiple homes in your community have the same defect, this clause prevents you from joining together to pursue a shared claim. Each buyer must pursue their claim individually.
- Document everything from the start. If you cannot join a class action, your individual claim must stand on its own. Thorough documentation from before and after closing strengthens your position.
- Review the Solivita Club Membership Fee Class Action (Avatar / AV Homes) case. The Solivita Club Membership Fee Class Action (Avatar / AV Homes) ruling may be relevant to your situation. If you are buying a Taylor Morrison home in a state with similar legal protections, this precedent could affect the enforceability of this clause.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Taylor Morrison contracts that collectively limit buyer remedies. A contract scan can identify all of them.