Construction Defect Journal Archives

Arbitration Provision in Homebuilder’s Warranty Agreement with Homeowners is Unenforceable

June 15, 2017
David Adelstein - Florida Construction Legal Updates

Buying a new home from a homebuilder is an exciting time. How could you not be excited about buying and moving into a new home? It is a big milestone. When buying a new home from a homebuilder, it is common that you are provided a limited warranty agreement to sign that outlines your rights if there is a “warranty” claim, the length of the warranty period, what constitutes a valid warranty claim, and includes an arbitration provision requiring you to arbitrate claims arising out of the agreement or home. It is also common that such limited warranty agreement contains important disclaiming language. Homeowners should always consider what they sign, but the reality is that most homeowners are going to absolutely sign what the homebuilder wants them to sign (and the homebuilder may even be unwilling to sell a home without certain signatures that offsets their risks).

Mr. Adelstein may be contacted at Dadelstein@gmail.com



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