Lawsuit: D.R. Horton Unlawfully Requires Home Buyers to Waive Warranty of Habitability

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D.R. Horton, Inc. has been named in a proposed class action lawsuit that accuses the home builder and seller of unlawfully requiring customers to waive their “warranty of habitability” when purchasing a new home. The case explains that under South Carolina law, home buyers are provided with a warranty of habitability ensuring them the new home “is free from substantial defects which could render the home unsuitable for habitation.” The law allows buyers to waive this right, the case continues, “only if the waiver is (1) conspicuous; (2) known to the buyer; and (3) specifically bargained for.”

The case argues that the defendant requires all customers to sign a Home Purchase Agreement containing a disclaimer of “critical warranty rights,” including the warranty of habitability. Therefore, the complaint alleges, customers are robbed of their rights without receiving any compensation in exchange.

The lawsuit further argues that the defendant instead provides under its agreements a “dubious limited warranty” through a third party that excludes notable issues such as building code violations and “incomplete construction items.” D.R. Horton itself does not directly warrant “any part of the construction of the new homes it sells,” the complaint attests, allowing the company to profit by robbing consumers of the protections to which they’re entitled under state law.

The case has recently been removed from state to federal court in South Carolina.