How Ivory Homes Uses This Clause
Ivory 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. These penalties can accumulate rapidly, creating significant financial pressure on buyers experiencing delays.
This provision typically appears within the purchase agreement alongside the closing timeline terms. The penalty amount and structure may vary by contract, but the effect is to shift the financial risk of closing delays onto the buyer.
As Utah's largest homebuilder, Ivory Homes uses standardized contract templates across its developments. A clause identified in one community's contract is likely present in other communities' contracts.
Builder-Specific Details
Builder-Caused Delays May Not Be Penalized
The closing penalty typically applies to buyer-caused delays. Review whether the contract imposes equivalent penalties on the builder for delays the builder causes, such as construction delays or failure to deliver the home on schedule.
Combined with Deposit Forfeiture
Daily closing penalties can compound financial pressure on buyers already at risk of losing their earnest money deposit if they cannot close.
Standard Form Contract
This clause appears in Ivory Homes' standard purchase agreement, which is generally presented on a take-it-or-leave-it basis.
Legal History
The following cases involve Ivory Homes's use of this clause type.
Ivory Homes Closing Disputes (Utah)
Court records document disputes involving Ivory Homes buyers who allege that closing penalties were imposed under circumstances beyond the buyer's control, including lender processing delays and title issues.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Ivory Homes's operating states.
| State | Status | Note |
|---|---|---|
| Utah | Likely Enforceable | Utah courts generally enforce per-day closing penalty provisions as liquidated damages, provided the amount represents a reasonable estimate of the builder's anticipated damages from a delayed closing. Provisions that are disproportionate to actual damages may be challenged as unenforceable penalties. |
Related Clauses in Ivory Homes Contracts
This clause often works in combination with other provisions in Ivory Homes's purchase agreements.
Daily closing penalties can compound financial pressure on buyers already at risk of losing their deposit.
Disputes about closing penalties must be resolved in private arbitration.
Builder-caused delays from material substitutions may not trigger equivalent builder penalties, while buyer delays from related financing issues are penalized.
What Buyers Can Do
- Understand the daily penalty amount and cap. Before signing, know exactly how much the daily penalty is and whether there is a maximum cap. Calculate the potential total exposure if closing is delayed by weeks.
- Negotiate mutual closing penalties. Request that the contract impose equivalent penalties on the builder for builder-caused closing delays. Reciprocal obligations create a fairer contract.
- Secure financing commitments early. Many closing delays result from financing issues. Begin the mortgage process early and maintain close communication with your lender to minimize delay risk.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Ivory Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.