Nevada
New Construction Buyer Guide
Nevada, and the Las Vegas metropolitan area in particular, is one of the highest-volume new construction markets in the country. D.R. Horton, Lennar, and KB Home are among the most active builders in the state, and the volume of transactions means that a large number of buyers are navigating builder purchase agreements in Nevada each year.
Nevada's legal landscape includes several notable developments relevant to new construction buyers. The Nevada Supreme Court found D.R. Horton's arbitration clause unconscionable in D.R. Horton v. Green, holding that the clause was presented in extremely small font and that the sales agent misrepresented it as a standard formality. This decision demonstrates that Nevada courts are willing to scrutinize the manner in which arbitration provisions are presented to buyers. More recently, Robinson v. D.R. Horton (Case No. 2:25-cv-02394, D. Nev. 2025), the RICO class action alleging a Monthly Payment Suppression Scheme, was filed in Nevada federal court.
Nevada's statutory framework includes a pre-litigation notice process for construction defect claims under NRS Chapter 40, a six-year statute of limitations for breach of contract, and a six-year statute of repose for construction defect claims under NRS 11.202 and NRS 11.203. The Nevada Deceptive Trade Practices Act provides additional consumer protections beyond common law remedies, giving buyers supplemental avenues for recourse in cases involving misleading builder conduct.
Key Protections
As established in D.R. Horton v. Green, the Nevada Supreme Court has demonstrated a willingness to find arbitration clauses unconscionable when they are presented in a misleading manner. The court found the clause was in extremely small font and that the sales agent misrepresented its significance, providing precedent for challenging unfairly presented arbitration provisions.
Nevada's construction defect statute (NRS Chapter 40) establishes a pre-litigation notice process that requires the homeowner to provide notice to the builder and allows the builder an opportunity to inspect and offer repairs before litigation proceeds. This structured process can facilitate resolution without the expense of a lawsuit.
Nevada provides a six-year statute of limitations for breach of contract claims (NRS 11.190(1)(b)), giving homebuyers a reasonable window to discover and pursue claims related to contractual obligations the builder has failed to meet.
The Nevada Deceptive Trade Practices Act (NRS 598.0903 et seq.) provides consumer protections beyond common law remedies. Homebuyers who can demonstrate that a builder engaged in deceptive or misleading conduct may pursue claims under this statute.
Under NRS 11.202 and NRS 11.203, Nevada provides a six-year statute of repose for construction defect claims. This sets a defined window within which homeowners can pursue claims for defects in their homes.
Key Risks
While the Nevada Supreme Court found an unconscionable arbitration clause in D.R. Horton v. Green, arbitration provisions that are properly presented and conspicuously disclosed remain enforceable in Nevada. Buyers should not assume that all arbitration clauses are vulnerable to challenge.
The pace of new construction in Las Vegas and surrounding communities can create pressure to close quickly. Builders may impose tight closing timelines with financial penalties for delays, and the competitive market environment may discourage buyers from negotiating contract terms.
The NRS Chapter 40 notice process imposes procedural requirements that homeowners must follow before filing suit. Failure to comply with these requirements may result in dismissal of the homeowner's claims, and the process gives the builder initial control over the repair timeline.
As alleged in Robinson v. D.R. Horton (D. Nev. 2025), builders operating in Nevada may present artificially low monthly payment estimates through affiliated lenders. Buyers should independently verify all payment projections and ensure that quoted amounts include taxes, insurance, and HOA fees.
Builder contracts in Nevada commonly include deposit forfeiture clauses. Buyers should understand the specific triggers for forfeiture and the amount at risk before signing the agreement.
Notable Cases
The Nevada Supreme Court found D.R. Horton's arbitration clause unconscionable, holding that it was presented in extremely small font and that the sales agent misrepresented the clause as a standard formality. The decision established that the manner of presentation, not just the content, of an arbitration provision is relevant to its enforceability.
A RICO class action alleging that D.R. Horton and its affiliated lender DHI Mortgage operated a Monthly Payment Suppression Scheme that presented buyers with artificially low monthly payment estimates. The case was filed in Nevada federal court and is currently pending.
Advice for Nevada Buyers
- 1Review the arbitration clause carefully and pay attention to how it is presented. The Nevada Supreme Court has found arbitration clauses unconscionable when presented in misleading ways, but properly disclosed provisions remain enforceable.
- 2Independently verify all monthly payment estimates provided by the builder or affiliated lender. As alleged in Robinson v. D.R. Horton, quoted payments may not reflect the true long-term cost of homeownership. Confirm that estimates include taxes, insurance, and HOA fees.
- 3Familiarize yourself with the NRS Chapter 40 pre-litigation process. You are required to provide notice to the builder and allow an opportunity for inspection and repair before you can file a construction defect claim.
- 4Be aware of the six-year statute of limitations for breach of contract and the six-year statute of repose for construction defects. Document any issues promptly and consult with an attorney if you believe a claim may be approaching these deadlines.
- 5Hire an independent home inspector before closing. In a high-volume market, an independent inspection provides essential verification that your specific home meets construction standards.
- 6Retain copies of all documents provided by the builder and lender, including payment estimates, rate sheets, and promotional materials. These records may be relevant to future claims under the Nevada Deceptive Trade Practices Act.
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