How Century Communities Uses This Clause
Century Communities purchase agreements have been documented to include daily closing penalty provisions. Contracts may impose penalties or allow the builder to terminate the agreement if the buyer fails to close by the designated date. This creates pressure to close even when unresolved defects or financing issues remain.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Century Communities operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Century Communities's scale means contract templates are largely standardized 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
Together these create dual financial pressure — daily penalties plus potential deposit loss — to force closing.
Standardized Across Markets
Century Communities's scale means contract templates are largely standardized across its operations. This clause identified in one state's contract is likely present in other states' contracts, though local addenda may modify the terms.
Standard Form Contract
This clause appears in Century Communities'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 Century Communities's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Daily closing penalty clauses in Texas new construction contracts are generally enforceable when... |
| Colorado | Likely Enforceable | Colorado courts generally enforce per-diem closing penalty provisions when they qualify as... |
| California | Uncertain | California applies heightened scrutiny to liquidated damages provisions in residential real estate... |
| Arizona | Likely Enforceable | Daily closing penalty clauses are generally enforceable in Arizona when structured as liquidated... |
| Nevada | Likely Enforceable | Daily closing penalty clauses in Nevada are generally enforceable as liquidated damages when the... |
| Florida | Likely Enforceable | Daily closing penalty provisions in Florida new construction contracts are generally enforceable... |
| Georgia | Likely Enforceable | Georgia generally enforces per-diem closing penalty provisions when structured as liquidated... |
| North Carolina | Likely Enforceable | Daily closing penalty provisions in North Carolina new construction contracts are generally... |
| South Carolina | Likely Enforceable | Daily closing penalty clauses in South Carolina are generally enforceable as liquidated damages when... |
| Tennessee | Likely Enforceable | Tennessee courts generally enforce per-diem closing penalty provisions when they qualify as... |
| Utah | Likely Enforceable | Utah courts generally enforce per-diem closing penalty provisions when structured as reasonable... |
| Washington | Uncertain | Washington courts apply heightened scrutiny to liquidated damages provisions in residential... |
| Oregon | Uncertain | Oregon courts apply careful scrutiny to liquidated damages provisions. Per-diem closing penalties... |
| Indiana | Likely Enforceable | Indiana courts generally enforce per-diem closing penalty provisions that qualify as reasonable... |
| Ohio | Likely Enforceable | Ohio courts generally enforce per-diem closing penalty provisions when structured as reasonable... |
| Virginia | Likely Enforceable | Virginia courts generally enforce per-diem closing penalty provisions when structured as reasonable... |
| Idaho | Likely Enforceable | Idaho courts generally enforce per-diem closing penalty provisions when structured as reasonable... |
| Alabama | Likely Enforceable | Alabama courts generally enforce per-diem closing penalty provisions when structured as reasonable... |
Related Clauses in Century Communities Contracts
This clause often works in combination with other provisions in Century Communities's purchase agreements.
Together these create dual financial pressure — daily penalties plus potential deposit loss — to force closing.
Inspection restrictions combined with closing pressure limit the buyer's ability to identify defects before closing.
What Buyers Can Do
- Negotiate the closing timeline. If possible, request a reasonable buffer period rather than a fixed date. Delays caused by the builder's own processes should not trigger buyer penalties.
- Understand the per-day penalty amount. Calculate the total exposure if closing is delayed by a week or more. Daily penalties can add up to significant sums quickly.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Century Communities contracts that collectively limit buyer remedies. A contract scan can identify all of them.