How Taylor Morrison Uses This Clause
Taylor Morrison purchase agreements have been documented to include monthly payment suppression / hidden costs provisions. 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.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. This provision is closely connected to Taylor Morrison's affiliated lending arm, Taylor Morrison Home Funding, Inc. (NMLS #8588).
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 Deposit Forfeiture
Buyers who discover true costs after signing face forfeiting their deposit if they back out.
Connection to Taylor Morrison Home Funding, Inc. (NMLS #8588)
Taylor Morrison operates Taylor Morrison Home Funding, Inc. (NMLS #8588) as an affiliated lending arm. The builder may offer financial incentives for buyers who use this lender, which creates a direct connection between the lending relationship and the terms of the purchase agreement.
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.
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 does not have a specific statute addressing monthly payment suppression in new construction... |
| Florida | Uncertain | Florida does not have a specific statute addressing monthly payment suppression in builder... |
| Arizona | Uncertain | Arizona does not have a specific statute addressing monthly payment suppression in builder... |
| California | Likely Unenforceable | California has some of the strongest consumer protection statutes in the country, and its Mello-Roos... |
| Colorado | Uncertain | Colorado does not have a specific statute targeting monthly payment suppression in builder... |
| Georgia | Uncertain | Georgia does not have a specific statute addressing monthly payment suppression in builder... |
| North Carolina | Uncertain | North Carolina does not have a specific statute addressing monthly payment suppression in builder... |
| Oregon | Likely Unenforceable | Oregon has strong consumer protection statutes through the Unlawful Trade Practices Act (UTPA),... |
| Washington | Likely Unenforceable | Washington has strong consumer protection statutes that may make payment suppression practices... |
| Nevada | Uncertain | Nevada does not have a specific statute addressing monthly payment suppression in builder marketing.... |
Related Clauses in Taylor Morrison Contracts
This clause often works in combination with other provisions in Taylor Morrison's purchase agreements.
Buyers who discover true costs after signing face forfeiting their deposit if they back out.
The affiliated lender may present suppressed payment estimates, and incentives encourage buyers to use that lender.
What Buyers Can Do
- Independently verify your projected monthly payment. Do not rely solely on estimates from Taylor Morrison Home Funding, Inc. (NMLS #8588). Get a loan estimate from at least one independent lender for comparison.
- Ask about temporary rate buydowns. Determine whether any quoted rate includes a temporary buydown that will expire, causing your payment to increase after the introductory period.
- 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.