How Trendmaker Homes Uses This Clause
Trendmaker Homes purchase agreements have been documented to include mandatory binding arbitration provisions. Disputes must go to private arbitration instead of court. Buyers lose their right to a jury trial and in many cases the ability to appeal an unfavorable decision.
As a subsidiary of TRI Pointe Homes (NYSE: TPH) since 2020, Trendmaker's arbitration provisions may reflect the parent company's corporate dispute resolution strategy. The arbitration clause applies to all disputes arising from the purchase agreement.
Trendmaker Homes operates exclusively in Texas, where mandatory arbitration clauses in new construction contracts are generally enforceable.
Builder-Specific Details
TRI Pointe Parent Company
Since the 2020 acquisition by TRI Pointe Homes, Trendmaker's arbitration provisions may reflect the parent company's corporate practices. Buyers should review whether the arbitration agreement names Trendmaker, TRI Pointe, or both as parties.
Combined with Habitability Waiver
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Standard Form Contract
This clause appears in Trendmaker Homes' 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 Trendmaker Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Mandatory arbitration clauses in Texas new construction contracts are generally enforceable under both the Federal Arbitration Act and the Texas General Arbitration Act. Texas courts have a strong pro-arbitration policy. |
Related Clauses in Trendmaker Homes Contracts
This clause often works in combination with other provisions in Trendmaker Homes's purchase agreements.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
What Buyers Can Do
- Understand the arbitration process before signing. Review which arbitration provider is specified, who selects the arbitrator, and whether you have any right to appeal. These details significantly affect the fairness of the process.
- Clarify which entity is party to the arbitration agreement. Determine whether the arbitration clause binds you to arbitrate with Trendmaker Homes, TRI Pointe Homes, or both. This affects which entity you are agreeing to arbitrate disputes with.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions that collectively limit buyer remedies. A contract scan can identify all of them.