How Eastwood Homes Uses This Clause
Eastwood Homes purchase agreements have been documented to include deposit forfeiture / earnest money trap provisions. In the Swygert's Landing case, Eastwood Homes canceled nine purchase contracts and attempted to require buyers to renegotiate at higher market prices. The buyers had already placed deposits and selected specifications. Production builder contracts commonly designate deposits as non-refundable if the buyer cancels, and buyers should confirm the specific conditions under which deposits are returned. (Source: Post and Courier, 2024; Charleston County Court of Common Pleas, Case No. 2021CP1002829)
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Eastwood Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Eastwood Homes'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 Preferred Lender
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
Regional Contract Patterns
Eastwood Homes operates in a more focused geographic footprint. 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 Eastwood 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 Eastwood Homes's operating states.
| State | Status | Note |
|---|---|---|
| North Carolina | Likely Enforceable | North Carolina courts enforce liquidated damages provisions, including deposit forfeiture in new... |
| South Carolina | Likely Enforceable | South Carolina courts enforce liquidated damages provisions in real estate contracts when the amount... |
| Virginia | Likely Enforceable | Virginia courts enforce liquidated damages provisions in real estate contracts when the amount bears... |
Related Clauses in Eastwood Homes Contracts
This clause often works in combination with other provisions in Eastwood Homes's purchase agreements.
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
Deposit disputes must go through arbitration, where the cost may approach or exceed the deposit itself.
What Buyers Can Do
- Understand exactly when your deposit becomes non-refundable. The contract may specify triggers that make the deposit non-refundable before you expect. Read the forfeiture conditions carefully.
- Know the cancellation provisions. Review what happens to your earnest money if you need to cancel. Eastwood Homes's contract may allow deposit retention even in circumstances beyond your control.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Eastwood Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.