How CBH Homes Uses This Clause
CBH Homes contracts may impose financial penalties on buyers who fail to close by the scheduled date, even when delays are caused by factors outside the buyer's control such as lender processing times. Buyers should confirm whether the closing date is firm or subject to reasonable extension. (Source: common production builder contract pattern)
Closing penalty provisions create financial pressure on buyers to close on the builder's timeline, even if construction is incomplete or if the buyer has identified defects that need resolution. The penalty may take the form of per-diem charges, deposit forfeiture, or contract termination rights.
As one of Idaho's largest homebuilders with standardized contracts, CBH Homes likely includes consistent closing penalty terms across its Treasure Valley communities.
Builder-Specific Details
Per-Diem Charges
Some production builder contracts impose daily charges for each day beyond the scheduled closing date. These charges can accumulate quickly and create significant financial pressure.
Builder vs. Buyer Delays
Review whether the contract distinguishes between delays caused by the builder and delays caused by the buyer. Closing penalties should not apply when the builder fails to complete construction on time.
Standard Form Contract
This clause appears in CBH Homes's standard purchase agreement and is generally presented on a take-it-or-leave-it basis.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects CBH Homes's operating states.
| State | Status | Note |
|---|---|---|
| Idaho | Likely Enforceable | Closing penalty provisions in Idaho are generally enforceable if the terms are reasonable and clearly disclosed. Penalties that function as unconscionable forfeitures may be subject to challenge under Idaho contract law. |
Related Clauses in CBH Homes Contracts
This clause often works in combination with other provisions in CBH Homes's purchase agreements.
Closing penalties may compound deposit forfeiture risk if the buyer is unable to close by the scheduled date.
Closing timeline pressure may limit the buyer's ability to schedule and complete independent inspections before closing.
Closing pressure may discourage buyers from raising concerns about material substitutions discovered during final walkthrough.
What Buyers Can Do
- Negotiate a reasonable closing extension provision. Request contract language that allows for reasonable extensions when delays are caused by factors outside your control, such as lender processing times or title issues.
- Confirm whether penalties apply to builder-caused delays. Review whether the contract imposes penalties only on buyer-caused delays or whether it also penalizes you for delays attributable to the builder.
- Understand the financial exposure. Calculate the total potential cost of closing penalties, including per-diem charges, and factor this into your budget and timeline planning.