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HomeOwners for Better Building - Pulte-Centex Warrenty of Habitability Supreme Court
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Pulte-Centex Warrenty of Habitability Supreme Court
Tuesday, 31 May 2005

Pulte-Centex Homes

Alliance for Home Buyer Justice sponsored by
Laborers' International Union of North America (LiUNA)
Dallas Texas protest Centex   See related photos of events

 Protest Group Storms Centex Lobby
Converging on North Texas from across the country, a group of angry homeowners and workers took a loud protest to the front steps of one of the nation’s biggest homebuilders.  At the headquarters of Centex in Dallas, homeowners and members of the Laborers International Union of North America (LiUNA) chanted outside, then walked inside to protest in the lobby until they were kicked out.  A short time later, the group inflated a two-story-tall pig designed to call attention to the company's profits and what protestors say is a role in the collapse of the real estate industry.  Many economists believe the bursting of the real estate bubble was a major factor in the recession and faltering of the American economy over the last 18 months. Read more...   See more at: Centex - Latest News

 San Antonio Pulte-Centex Retaining Walls
San Antonio Builders Create Shaky Man-Made Hillside

View Pulte/Centex Presents Rivermist
Pulte's Laurin Darnell misleads homeowners saying community is safe
Pulte/Centex Presents Landslide



Centex Homes and Supreme Court of Texas on
Question of Habitability

The Supreme Court of Texas.
The November 29 Docket
Centex Homes and Centex Real Estate Corp. v. Buecher

In Centex Homes and Centex Real Estate Corp. v. Buecher the issue is whether homeowners can waive, by contract in buying a new home, the implied warranties of habitability and "good and workmanlike" construction for the house where the language in the contract is "clear and free from doubt." The homeowners sought in a class action to prevent Centex from enforcing the waiver included in their sales documents. The trial court dismissed the class action, but the court of appeals reversed, reasoning that policy considerations giving rise to implied warranties prevented their disclaimer in this case by a preprinted standard from waiver.
Comments on the Supreme Court Hearing:

 A Message from Janet Ahmad 

The Chief Justice Phil Hardberger of the 4th Court of Appeals said it best, "The burden on the home builder is not great: only that the home be built in a workmanlike manner and be fit for human habitation."  The relief sought by Centex Homes from the Texas Supreme Court is a bold and shocking display of their intent to produce a substandard home, and not be held accountable. The very idea that any builder would subject himself to the public ridicule of such a request is astonishing. Centex attorneys had the humiliating task of explaining to the highest court why their client thinks it is too high a standard to build a home that is fit for human habitation. 


Our Texas Legislature had a specific intent when they passed the state law of an "Implied Warranty."  The intent of our Legislature was to provide protection to the home buyer from predatory business practices by unethical home builders and to hold them to a minimum standard of "Good Workmanship of Habitability."  Centex is asking the Texas Supreme Court to clearly change the intent of that law, rather than having it amended by the State Legislature.


The home-building industry generally advocates and promotes contractual requirements that openly display their indifference to delivering a quality product. Evidence of  this is that most home builders include this shameful statement in their contracts to build a home: "...Builder makes no warranty, express or implied as to quality, fitness for a particular purpose, merchantability, HABITABILITY or otherwise..." Centex has gone a step farther with its no shame policy. Their take- it-or-leave-it unilateral contract agreement requires that unless the buyer agrees to give up his or her right of implied warranties of good and workmanlike construction and habitability, they will not sell them the house.  Now Centex is shamefully asking the Texas Supreme Court to give their endorsement of the practice of substandard home building with little or no warranty.


Centex attorneys argue that the home buyer does not need an Implied Warranty if they are provided a "Limited Warranty."   The key word is "LIMITED."  If the Supreme Court rules in favor of Centex it will be the end of any semblance of a home warranty as we know it today that is already a mockery.  The limitations imposed and exclusions are innumerable.  Such basic household items as kitchen sinks are excluded.  As a result, the builder installs the cheapest substandard (sometimes rejected) product, knowing it will not last the first year.  To avoid responsibility under the warranty, builders provide what appears to be helpful homeowner maintenance booklets or brochures after closing, with such titles as, "Landscaping and Foundation Care." What appears to be a helpful guide for home maintenance is in reality a disclaimer of responsibility for builder liability of defects and even foundation failures.


Centex now incorporates a number of safeguards in their standard unilateral contract that deprive the buyer from certain Constitutional Rights.  Their contracts contain a Binding Arbitration Clause, which deprives the home buyer of their Constitutional right to a trial by jury. Amazingly, Centex incorporates a "Declaration of Covenants, Conditions and Restrictions" in their contact that also restricts the home buyer's  Constitutional Right of Free Speech.  It reads as follows:

"PICKETING AND DEMONSTRATION - picketing, protest marches, sit-in demonstrations, protest speeches, or other forms of public protest...Owner, by acceptance of the deed to any Lot, shall be deemed to have accepted the foregoing prohibitions as REASONABLE LIMITATIONS on his or her CONSTITUTIONAL RIGHT TO FREE SPEECH..."

Buying a Centex Home means no Implied Warranty for Good Workmanship and Habitability,  no Constitutional Right to a trial by jury, and Restriction of Constitutional Right to Free Speech.  If the Texas Supreme Court affirms Centex's request, it will send a message across the country.  Then all other builders will follow their lead.  What will become of "THE AMERICAN DREAM?"


Texas Watch
Press Release
November 28, 2000
For Immediate Release
For More Information Please Contact:
Dan Lambe 512-381-1111
Cris Feldman 512-472-9770


Supreme Court to hear arguments on whether new home builders in Texas can evade responsibility to new home buyers

On Wednesday, November 29, the Texas Supreme Court will hear arguments in a case that could seriously lower the quality standards for new homebuilders in the state of Texas.   In Centex Homes v. Buecher,  the Texas Supreme Court will consider whether home builders in Texas will be required to guarantee, through long standing implied warranties, that the new homes they build and sell to Texas families are suitable for human habitation. 

Consumer protection organizations and homeowners rights groups are monitoring this case because of the seriousness of its impact on Texas families and Texas homeowners rights.  This case also serves as an early test for how moneyed special interests will fare at the Supreme Court this session.

"For years homebuilders in Texas have been held to a simple standard - provide new homes to Texans that are well-built and suitable for human habitation."  said Dan Lambe, Executive Director of Texas Watch.  "Now Centex Homes is suggesting that such a bar is too high a standard and they are running to the Texas Supreme Court for relief." 

"Buying a home is often the largest and most important purchase a family ever chooses to make."  said Kathi Fragnoli, co-founder of HOME, a homeowners rights group based out of Arlington, Texas.  "Now one of the largest home builders in the nation and our state, Centex Homes, is seeking an exemption from one of the most basic and reasonable warranty standards imaginable."

"You have to question the motives of a company that builds homes, but refuses to guarantee that they are at the very least suitable for human
habitation."  continued Fragnoli.    "If Centex Homes is allowed to waive these most basic standards of quality in their warrantees, the losers will be unsuspecting and often unknowing Texas home buyers."  said Janet Ahmad, President of Homeowners for Better Builders, a national homeowners assistance and advocacy organization.  "If Centex wins this case then the buyer of a toaster oven, a VCR or a microwave will have more legal rights to seek repairs than the buyer of a brand spanking new home." 

"This case pits wealthy special interests against the interests of Texas families."  said Cris Feldman of Texans for Public Justice.  "Centex Homes lawyers have invested a tremendous amount of money in this Texas Supreme Court.  Baker and Botts and Bracewell & Patterson have given the justices over $350,000 in recent years.  Bracewell contributed $5,000 each to Justice Gonzales and Hecht in the pas two months alone, while Baker & Botts subsidizes Supreme Court clerk salaries."    

Centex Homes Warranty Expense Only 0.3%
Homebuilding Industry Warranty Spending is Extremely Low
New homebuilder warranty claims are low, while homebuyer complaints are at an all-time high?
When buying an airplane, helicopter, a car, a washer or dryer, computer, printer, desk or even an office chair, the percentage of dollars spent by the manufactures on warranty issues is greater thant that spent by homebuilders on defectively built new homes. The percentage of earnings spent by a  builder on warranty issues is as little as 0.3% (Centex), while Gateway reported 6.2% and Lexmark International, spent 9.7%. Read more: Homebuilding Industry Warranty Spending is Extremely Low
Read the entire series Warranty Week Six Part Series

Consumers for Quality Homes
Corporate builders are using subcontractors, often employing a labor force without the training required to build quality homes. This practice of using a shadow workforce leads to poor workmanship and record number of homeowner complaints...In the spring of 2006 CFQH surveyed Centex Homes consumers in several markets.
How would you rate your experience with Centex Homes? 
41%, FAIR: 24%, GOOD: 35%
How would you rate the quality of your new home built by Centex Homes?
31%, AVERAGE: 28%,GOOD: 26%, EXCELLENT: 15% 

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.
Amendment I of the United States Constitution
...no owner or resident of any lot shall engage in picketing, protest marches, sit-in demonstrations, protest speeches, or other forms of public protest ...Each owner, by acceptance of the deed to any lot, shall be deemed to have accepted the foregoing prohibitions as reasonable limitations on his or her constitutional right of free speech."
Signed Damon Lyles
Division President, Centex Real Estate Corp,




The following is a scan of Article VII of the Declaration of Covenants signed by Centex Division President and filed with the State of Texas. By accepting the deed to any lot homeowners have given up their rights to free speech and cannot picket or protest.



Monday, 01 November 2004

Orlando Sentinel -
Reports on construction defects in new Centex Homes
Orlando Sentinel
See Reports 9.2 construction defects and code violations in new Centex Homes

           Aug 3 2002 Two Centex Stories in San Antonio Texas:

KENS TV Outlook Canyon Creek residents upset at home builder (07/31/02) (video unavailable) photos coming soon.

KMOL TV Centex Homes They were supposed to be dream homes, but some people on the northwest side say they're houses are a nightmare. News 4's Joel Eisenbaum has the story.

July 24, 2001 Homeowners take action against developers over construction flaws By FRED LUDWIG, Californian staff writer  e-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it The Northshore suit names Centex, a national homebuilder. Company spokesman Neil Devroy said officials had not received a copy of the lawsuit and are not aware of open warranty issues with customers. The company in general works to resolve such complaints out of court, he said.  "If our customers have problems, we go out and fix those problems for them," Devroy said.

July 21 Profit Increases 56 Percent at Dallas-Based Construction Firm Centex Corp.
Source: The Dallas Morning News Jul. 19 2001Dallas-based Centex Corp. reported a 56 percent jump in profit on Wednesday as a result of big increases in home sales and financial services income.

NOTE: And yet even with this windfall, Centex has asked the Texas Supreme Court to relieve them of the implied warranty of good workmanship and habitability. See Centex Vs Buescher
June 27, 2001 Law Firm Estrada & Thomson Announces Class Action Lawsuit Against Centex Homes. The proposed class includes 207 homes located in the Serrano, Crescent Ridge and Treelake Village subdivisions located in El Dorado Hills and Granite Bay. For detaisl see the Estrada & Thomson website.

June 8, 2001 Texas Supreme Court Screws Homeowners Again and Upholds Binding Arbitration. This is just one in two punch knockout to the consumers. The next will be when they show their loyalty to the Texas Homebuilders and relieve them of the implied warranty of good workmanship and habitability. "The Biggest Investment of Your Life in Texas" now has the "Least Amount of Consumer Protection". Why would anyone buy a new house?

June 8, 2001 Court ruling upholds binding arbitration. Consumers can be barred from lawsuits  Associated Press AUSTIN -- Consumers who complain about defective products can be forced into binding arbitration and barred from suing the manufacturer, the Texas Supreme Court ruled on Thursday. 

"Arbitration provides consumers with an immediate and an inexpensive place to go," said Cami Boyd, a lawyer representing two Texas-based mobile-hine"

May 10, 2001 Posted to the Centex Page: No. 04-99-00337-CV Michael M. BUECHER, et al.,  Appellants v. CENTEX HOMES, a Nevada Partnership, and Centex Real Estate Corporation d/b/a Centex Homes, Appellees. "It would be incongruous if public policy required the creation of an implied warranty, yet allowed the warranty to be disclaimed and its protection eliminated merely by a pre-printed standard form disclaimer or an unintelligible merger clause."

Apr 2, 2001 Posted new pictures of the new siding on the home. After many years of fighting Centex, they finally did the right thing.

Feb 18, 2001 Posted a PDF Copy of the Amicus-Curiaesupplied to the Texas Supreme Court for Centex Homes v. Buecher in support of Centex. A review of this amicus is also available.

Feb 15, 2001 Posted a Review of the Amicus-Curiae supplied to the TexasSupreme Court for Centex Homes v. Buecher in support of Centex.

Feb 15, 2001 Posted a Review of the Residential Warranty Corporation 10 Year Warranty. This is the warranty provided by Centex in Texas. If you have any comments, or if you found I have not represented the facts correctly, please contact me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it so I may correct it.

Feb 15, 2001 Recived a copy of the Brief of Amicus-Curiae supplied to the TexasSupreme Court for Centex Homes v. Buecher in support of Centex. . "The fees for preparation of this brief have been paid by NAHB." (National Assoc of Home Builders) (PDF version of the complete document coming soon.) Of particular interest:

Quote: "Between 1987 and 1998, Home Buyers Warranty Corporation, one of the laargest providers of ten-year insured warranty programs in Texas paid an average more than $0,000 per accepted structural claim to home owners in Texas"

How many claims were "accepted"? And what percentage of claims are denied? And, by the way, Centex Homes doesn't use the HBW. They use the RWC warranty which has over 38 exclusions including 

  • Loss or damage caused by soil movement
  • Consequential or incidental damages
  • Loss or damage resulting from, or made worse by the the presense of hazardous or toxic materials resulting in uninhabitability or health risk within the home.
Jan 23, 2000:  Posted in Centex Page: New photos of the ABTCO siding installed on a Centex home. These photos were taken during a site visit by HOBB.

Dec 12, 2000:  Posted in Centex in the News: (Posted at 4:10 p.m. EST Saturday, December 5, 1998 )Home built over source of lethal gas By AMES ALEXANDER  Staff Writer . Deborah West, a former Centex employee who now sells new houses for Century 21, is  suing Centex Homes and The Crosland Group over the problems. In her suit, West says the buried  material has also caused the house to settle, causing cracks throughout.

Dec 12, 2000:  Posted in Centex in the News: Conservationists Target Largest US Home
Builder  By Danielle Knight  WASHINGTON, Mar 30 (IPS) - Environmental activists in more than 30 cities across the United States, are planning to protest next week against Centex Homes, the nation's largest home builder, unless the construction company details a plan to stop using wood
products from ancient forests worldwide. 

Dec 12, 2000:  Posted in Centex in the News: One of America's largest housing developers will pay a black couple $71,000 to settle a complaint accusing the firm of refusing  to sell the couple a San Francisco Bay area home, Housing and Urban Development Secretary Andrew Cuomo announced today. 

 Cuomo said that Centex Homes, a division of Centex Real Estate Corporation, agreed in an enforcement agreement with HUD to settle a  housing discrimination complaint filed with HUD in 1997 by Oakland, CA residents Sylvia Myles and Bruce Soublet. Centex admits no  wrongdoing in the settlement. 

Dec 10, 2000:  Posted in Centex in the News: Home buyers await court ruling on general vs. express warranties  By DAVID KOENIG Associated Press. "Centex says it is doing buyers a favor by requiring them to sign the express warranty. It argues that the state's so-called implied warranty, with terms such as "habitability" and "workmanship," is so vague that it leads to disputes between buyers and builders. "

Dec 10, 2000:  Posted More pictures of the siding on the home with mold and 1/2 inch gaps.

Dec 9, 2000:  Posted : "Any "unresolved dispute" (defined below) that you may have with the Builder[Centex], RWC or WPIC, shall be submitted to binding arbitration...." Residential Warrant Corporation Limited Warranty Program

Dec 8, 2000:  Posted in Centex in the News: Owners, Builder Clash Over Waived Implied Warranty "If Centex wins this case, then the buyer of a toaster oven, a VCR or a microwave will have more legal rights to seek repairs than the  uyer of a brand spanking new home," says Janet Ahmad of San Antonio, president of Homeowners for Better Builders. 

Nov 26, 2000:  Posted background information and summaries of the Supreme Court of Texas November 29 Docket  Centex Homes and Centex Real Estate Corp. v. Buecher

Nov 26, 2000:  Posted Supreme Court and Centex Homes Press release.

Nov 22, 2000:  Posted Article IV  of the Spring Creek Forest Subdivision Declarations of Covenants. This legal document, filed with the State of Texas,  specifically restricts homeowners rights to freedom of speech by disallowing picketing, protesting, and displaying of signs in the yard or on a car within the subdivision. This document filed with the State of Texas, is signed by Damon Lyles, Division President, Centex Real Estate Corp,  As the saying goes....No Place but Texas!

Nov 19, 2000:  Posted pictures of homeowners advertising the quality of their home built by Centex. Picture 1, Picture 2, Picture 3.

Nov 19, 2000:  TEXAS HOMEBUILDERS NO LONGER GUARANTEE WELL-BUILT HOMES  Buecher et al, v. Centex Homes case summary provided by Dan Lambe of Texas Watch:  888-738-4226 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it This case will be heard Nov 29,2000 in the TX Supreme Court. The outcome will affect ALL consumers.

Nov 3, 2000: Scheduled to be heard in the Texas Supreme Court Nov 29, 2000. 00-0479 CENTEX HOMES v. BUECHER Background story Nov 23, 1999: "Court gives win to home buyers". The San Antonio Express News. 

"Purchaser agrees to accept said homeowner's warranty at closing in lieu of all other  warranties, whatsoever, whether expressed or implied by law, and including but not limited to the implied warranties of good workmanlike construction and habitability. Purchaser acknowledges and agrees that seller is relying on this waiver and would not sell the property to purchaser  without this waiver." Translation: Although the state of Texas has long held that new homes have an implied warranty of workmanlike construction  and habitability, your warranty is only what is covered in a 24-page insurance...... "

Nov 2, 2000 City warms to study of stacked appliances By David Anthony Richelieu and Bill Pack Express-News Staff Writers "It's taken us three years to get someone's attention, so I would have to see City Council's decision as a positive step forward." -- Janet Ahmad, HomeOwners for Better Building.

Nov 2, 2000 City warms to study of stacked appliances By David Anthony Richelieu and Bill Pack Express-News Staff Writers "It's taken us three years to get someone's attention, so I would have to see City Council's decision as a positive step forward." -- Janet Ahmad, HomeOwners for Better Building.

Nov 2, 2000 San Antonio Express News agrees ith HOBB: Editorial: National Electric Code must be city's code, too. "The council should adopt the national standard. This is an area where its uniqueness makes San Antonio's leadership look dangerously complacent. " (See related story for background: AC placement fuels hot fight

Oct 26, 2000 Added to Builders in the NewsAC placement fuels hot fight  [San Antonio, TX] By David Anthony Richelieu Express-News Staff Writer. The City Council is expected to resolve a dispute today over whether the stacking of air conditioning units over electric hot water heaters should be allowed to continue in new homes and apartments. 

"....the city has a moral obligation to change a potentially dangerous practice, adding that it was only a matter of time before a water heater short circuit would trigger a larger fire and put people's lives at risk." Press Release HomeOwners for Better Building.

Oct 18, 2000Added to Builders in the NewsGroup questions electrical code By David Anthony Richelieu Express-News Staff Writer.


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