How Taylor Morrison Uses This Clause
Taylor Morrison purchase agreements have been documented to include restrictive limited warranty exclusions provisions. 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. This clause has been the subject of litigation, including Taylor Morrison of Texas v. Ha.
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 Warranty Voiding
Warranty exclusions narrow coverage while third-party administration adds procedural barriers to filing claims.
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.
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.
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.
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 | Express warranty exclusion clauses in Texas new construction contracts are generally enforceable.... |
| Florida | Likely Enforceable | Express warranty exclusion clauses in Florida new construction contracts are generally enforceable.... |
| Arizona | Likely Enforceable | Express warranty exclusion clauses in Arizona new construction contracts are generally enforceable.... |
| California | Uncertain | Warranty exclusion clauses in California new construction contracts face significant limitations.... |
| Colorado | Uncertain | Warranty exclusion clauses in Colorado new construction contracts face notable constraints.... |
| Georgia | Likely Enforceable | Express warranty exclusion clauses in Georgia new construction contracts are generally enforceable.... |
| North Carolina | Likely Enforceable | Express warranty exclusion clauses in North Carolina new construction contracts are generally... |
| Oregon | Uncertain | Warranty exclusion clauses in Oregon new construction contracts face constraints under Oregon's... |
| Washington | Uncertain | Warranty exclusion clauses in Washington new construction contracts face notable constraints.... |
| Nevada | Uncertain | Warranty exclusion clauses in Nevada new construction contracts face significant statutory... |
Related Clauses in Taylor Morrison Contracts
This clause often works in combination with other provisions in Taylor Morrison's purchase agreements.
Warranty exclusions narrow coverage while third-party administration adds procedural barriers to filing claims.
If the habitability waiver holds, the limited warranty becomes the sole protection, and exclusions further narrow it.
Even warranty-covered items may be subject to the overall damage limitation.
Substituted materials may not be covered under the same warranty terms as originally specified materials.
What Buyers Can Do
- Read the warranty exclusion list carefully. The exclusions may cover common issues like cosmetic defects, drainage problems, HVAC performance, and landscaping. Know what is not covered before you close.
- Understand warranty durations by category. Structural warranties may last 10 years, systems warranties 2 years, and cosmetic warranties just 1 year. Each category has different coverage and exclusions.
- Review the Taylor Morrison of Texas case. The Taylor Morrison of Texas v. Ha 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.