Consumer protections vary by state.
Consumer protections are bolstered or restricted by on state law, so what a builder may be required to do in one state they may not have to do in another. Similarly, the legal avenues for recourse available to a homebuyer can look different state to state.
In Texas, we’ve come to learn that the protections and avenues for recourse are much weaker than we expected.
Arbitration agreements are part of the sales contract.
David Weekley includes at the end of their sales contract an arbitration agreement. While this does not prevent a buyer from raising a legal claim against the builder, it does restrict the options and outcomes available.
Your state may tie your hands when it comes to potential damages available.
We learned that in Texas, the Texas Residential Construction Liability Act restricts a customer’s ability to sue their homebuilder. The RCLA also inhibits a homebuyer’s ability to pursue civil charges of fraud against their builder.
We recommend you do research to establish an understanding of some of these topics.
While we cannot offer legal advice, these are some topics and terms we recommend you research to understand more. You may also consult with an attorney for their professional guidance.
Generative AI search tools can help answer some of your questions.
With the recent advent of generative AI research tools, this can be a useful avenue to help increase your knowledge of these topics and consider risks as you move forward.
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