How Adams Homes Uses This Clause
Adams Homes purchase agreements have been documented to include daily closing penalty provisions. If the buyer cannot close by the specified date, the contract imposes per-day financial penalties that can accumulate rapidly. These penalties apply even when the delay is caused by factors outside the buyer's control.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Adams Homes operates across multiple Southeast states, the enforceability and practical impact of this clause varies depending on where the home is located.
Adams Homes's standardized product line and regional footprint mean contract templates are largely consistent across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Deposit Forfeiture
If closing penalties accumulate and the buyer ultimately cannot close, the builder may also retain the earnest money deposit, compounding the buyer's financial loss.
Regional Contract Patterns
Adams Homes operates across the Southeast. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Standard Form Contract
This clause appears in Adams Homes's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Adams Homes's operating states.
| State | Status | Note |
|---|---|---|
| Alabama | Likely Enforceable | Alabama courts generally enforce per-day closing penalties as liquidated damages when the amount is reasonable. |
| Florida | Likely Enforceable | Florida courts enforce per-day closing penalties as liquidated damages when the amount is reasonable and not a penalty. |
| Georgia | Likely Enforceable | Georgia courts enforce per-day closing penalties as liquidated damages when the amount bears a reasonable relationship to the anticipated harm. |
| Mississippi | Likely Enforceable | Mississippi courts enforce per-day closing penalties as liquidated damages when the amount is reasonable. |
| North Carolina | Likely Enforceable | North Carolina courts enforce per-day closing penalties as liquidated damages when the amount is reasonable. |
| South Carolina | Likely Enforceable | South Carolina courts enforce per-day closing penalties as liquidated damages when the amount bears a reasonable relationship to anticipated damages. |
| Tennessee | Likely Enforceable | Tennessee courts enforce per-day closing penalties as liquidated damages when the amount is reasonable. |
Related Clauses in Adams Homes Contracts
This clause often works in combination with other provisions in Adams Homes's purchase agreements.
If closing penalties accumulate and the buyer ultimately cannot close, the builder may also retain the earnest money deposit.
Disputes over closing penalties must be resolved through arbitration rather than court.
What Buyers Can Do
- Confirm your financing timeline before committing to a closing date. Ensure your lender can meet the closing deadline specified in the contract. Build in a buffer for unexpected delays in loan processing.
- Calculate the maximum penalty exposure. Multiply the per-day penalty by a realistic worst-case delay scenario. Understand the total financial exposure before signing.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Adams Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.