How Taylor Morrison Uses This Clause
Taylor Morrison purchase agreements have been documented to include limitation of liability / no monetary damages provisions. 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. 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
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
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 | Uncertain | Texas courts generally enforce contractual liability limitations but subject them to... |
| Florida | Uncertain | Florida law imposes statutory protections for construction defect claims under Chapter 558 that may... |
| Arizona | Uncertain | Arizona's Purchaser Dwelling Act provides statutory remedies for construction defects that exist... |
| California | Likely Unenforceable | California provides strong statutory protections for homebuyers under the Right to Repair Act (SB... |
| Colorado | Likely Unenforceable | Colorado's Construction Defect Action Reform Act (CDARA) and the Homeowner Protection Act of 2007... |
| Georgia | Uncertain | Georgia law permits contractual limitation of liability but subjects such clauses to... |
| North Carolina | Uncertain | North Carolina recognizes the implied warranty of habitability for new construction and has... |
| Oregon | Likely Unenforceable | Oregon has strong statutory protections under the Oregon Unlawful Trade Practices Act and recognizes... |
| Washington | Likely Unenforceable | Washington has strong statutory protections for homebuyers under the Washington Building Code Act... |
| Nevada | Likely Unenforceable | Nevada has among the strongest statutory protections for new home buyers in the nation. NRS Chapter... |
Related Clauses in Taylor Morrison Contracts
This clause often works in combination with other provisions in Taylor Morrison's purchase agreements.
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
The damage cap limits recovery even for items covered by the express warranty.
Together these clauses eliminate both the legal standard (habitability) and the remedy (damages).
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.
- 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.