How Darling Homes Uses This Clause
Darling 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 accumulate until closing occurs or the contract is terminated.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. In the luxury price range, the per-day penalty amount can be substantial.
As a luxury Texas builder and subsidiary of Taylor Morrison (NYSE: TMHC), Darling Homes' contract templates are generally consistent across its Dallas-Fort Worth and Houston operations.
Builder-Specific Details
Combined with Deposit Forfeiture
If a buyer faces both daily closing penalties and deposit forfeiture, the financial exposure from delays can compound quickly, particularly given the higher price points of Darling Homes properties.
Standard Form Contract
This clause appears in Darling Homes' 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 Darling Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Daily closing penalty clauses in Texas new construction contracts are generally enforceable as liquidated damages provisions, provided the per-day amount is a reasonable estimate of the builder's carrying costs and not a penalty. Texas courts examine reasonableness at the time the contract was formed. |
Related Clauses in Darling Homes Contracts
This clause often works in combination with other provisions in Darling Homes's purchase agreements.
Deposit forfeiture and closing penalties can compound financial exposure if a buyer cannot close on time.
Inspection restrictions may prevent buyers from identifying issues that could delay closing.
What Buyers Can Do
- Confirm your financing timeline before signing. Ensure your lender can meet the closing date specified in the contract. Jumbo loans common in the luxury segment may require longer processing times.
- Negotiate the penalty amount and grace period. Ask whether the builder will agree to a lower per-day amount or a grace period before penalties begin. Even a few days of buffer can prevent unnecessary financial exposure.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Darling Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.