Florida
New Construction Buyer Guide
Florida is among the nation's most active new construction markets, and its legal landscape reflects the volume and complexity of builder-buyer disputes that arise in the state. Florida courts routinely enforce arbitration clauses in builder purchase agreements, and the state's statutory framework includes a pre-suit notice requirement under Chapter 558 of the Florida Statutes (the Construction Defect statute) that must be satisfied before a homeowner can initiate litigation. Florida also permits builders to engage their own private inspection companies, a practice that parallels the approach in Texas.
Several high-profile cases have originated in Florida. The RICO class action Santiago v. D.R. Horton was filed in Florida and alleges systemic issues in the builder's construction practices. Multiple lawsuits involving Lennar developments, including those in LaMorada and Homestead, are currently pending in Florida courts. The Seminole Tribe v. Lennar case in Broward County involves claims related to 552 homes. These cases illustrate the breadth of construction-related disputes in the state.
Florida case law provides that consequential damages are recoverable in construction disputes absent a specific contractual waiver. As identified in Gonzalez v. Barrenechea (2015), the absence of a waiver clause means the builder may be liable for damages beyond the cost of repair, including diminished property value and costs incurred as a result of the defect. Buyers should examine their contracts to determine whether consequential damages have been waived.
Key Protections
As identified in Gonzalez v. Barrenechea (2015), Florida law permits recovery of consequential damages in construction defect disputes unless the purchase agreement contains a specific waiver. This can include diminished property value, relocation costs, and other expenses arising from the defect.
Florida's Construction Defect statute (Chapter 558) establishes a pre-suit notice-and-cure process. While this imposes procedural requirements on the homeowner, it also obligates the builder to respond to the claim within a defined timeframe and to offer repair or settlement.
Florida's building code, particularly as it relates to hurricane and wind resistance standards, imposes stringent construction requirements. Non-compliance with these codes may give rise to claims independent of the purchase agreement.
Florida provides a ten-year statute of repose for latent construction defects (Fla. Stat. Section 95.11(3)(c)), giving homeowners a longer window to discover and pursue claims for hidden defects than many other states allow.
Key Risks
Florida courts routinely compel arbitration in builder disputes when the purchase agreement contains an arbitration clause. Buyers who sign contracts with these provisions generally waive their right to litigate construction defect claims in court.
Florida allows builders to retain their own private inspection companies for code compliance. As documented in industry reporting, this practice may limit the independence of the inspection process.
While Florida law permits recovery of consequential damages by default, many builder contracts include explicit waiver clauses. Buyers who sign contracts containing these waivers forfeit the right to recover damages beyond direct repair costs.
Florida builder contracts commonly include deposit forfeiture provisions and penalties for failure to close by a specified date. These clauses are generally enforceable and can result in the loss of substantial earnest money deposits.
Some Florida builder contracts include anti-assignment clauses that prevent the buyer from assigning warranty or defect claims to a subsequent purchaser, limiting the recourse available to resale buyers.
Notable Cases
A RICO class action alleging systemic construction defects and fraudulent practices by D.R. Horton across multiple Florida developments. The case raises claims of organized patterns of deficient construction and concealment of known defects.
The court held that consequential damages are recoverable in construction defect cases absent a specific contractual waiver, establishing that builders may be liable for damages beyond the direct cost of repair.
A case involving claims related to 552 homes built by Lennar for the Seminole Tribe in Broward County, alleging widespread construction defects across the development.
Pending litigation involving Lennar's LaMorada development in Florida, with homeowner claims alleging construction defects and warranty disputes across the community.
Advice for Florida Buyers
- 1Examine your contract for a consequential damages waiver. Under Florida law, consequential damages are recoverable unless specifically waived. The presence or absence of this clause can significantly affect your available remedies.
- 2Familiarize yourself with the Chapter 558 pre-suit process. Florida requires written notice to the builder and a defined response period before you can file a construction defect lawsuit.
- 3Hire an independent home inspector before closing. Florida permits builders to use their own inspection companies, so an independent inspection provides an additional layer of verification.
- 4Review the arbitration clause and understand that Florida courts routinely enforce these provisions. If your contract includes mandatory arbitration, you will likely be required to resolve disputes outside of court.
- 5Document all defects with photographs, timestamps, and written communications. Thorough documentation strengthens your position under both the Chapter 558 process and any subsequent legal proceedings.
- 6Check whether your contract contains an anti-assignment clause. If you plan to sell the home in the future, this clause may prevent the next buyer from pursuing warranty claims against the builder.
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