How Lennar Uses This Clause
Lennar purchase agreements have been documented to include daily closing penalty provisions. If the buyer fails to close by the designated date, a per-day financial penalty accumulates automatically. This creates a financial incentive to close even when unresolved issues remain with the home or financing.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Lennar'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
As per-diem fees accumulate, the running cost of delay rises alongside the separate risk that earnest money may be kept as liquidated damages.
Standard Form Contract
This clause appears in Lennar'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 Lennar's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Daily closing penalty clauses in Texas new construction contracts are generally enforceable when... |
| Florida | Likely Enforceable | Daily closing penalty provisions in Florida new construction contracts are generally enforceable... |
| 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... |
| Colorado | Likely Enforceable | Colorado courts generally enforce per-diem closing penalty provisions when they qualify as... |
| Nevada | Likely Enforceable | Daily closing penalty clauses in Nevada are generally enforceable as liquidated damages when the... |
| 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... |
| Georgia | Likely Enforceable | Georgia generally enforces per-diem closing penalty provisions when structured as liquidated... |
| Virginia | Likely Enforceable | Virginia courts generally enforce per-diem closing penalty provisions when structured as reasonable... |
| Maryland | Uncertain | Maryland applies careful scrutiny to liquidated damages provisions in residential contracts.... |
| New Jersey | Uncertain | New Jersey applies heightened scrutiny to liquidated damages provisions in residential contracts.... |
| Tennessee | Likely Enforceable | Tennessee courts generally enforce per-diem closing penalty provisions when they qualify as... |
| Minnesota | Uncertain | Minnesota courts apply careful scrutiny to liquidated damages provisions in residential contracts.... |
| 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... |
| Illinois | Uncertain | Illinois courts apply careful scrutiny to liquidated damages provisions in residential contracts.... |
| Indiana | Likely Enforceable | Indiana courts generally enforce per-diem closing penalty provisions that qualify as reasonable... |
| Pennsylvania | Likely Enforceable | Pennsylvania courts generally enforce per-diem closing penalty provisions when structured as... |
| 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... |
| Utah | Likely Enforceable | Utah courts generally enforce per-diem closing penalty provisions when structured as reasonable... |
Related Clauses in Lennar Contracts
This clause often works in combination with other provisions in Lennar's purchase agreements.
As per-diem fees accumulate, the running cost of delay rises alongside the separate risk that earnest money may be kept as liquidated damages.
Certificate of occupancy issues may interact with closing deadlines and associated penalties.
The inspection-restriction and scheduled-closing-penalty clauses together compress the defect-identification window, leaving the buyer less time than a thorough pre-closing review would require.
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 Lennar contracts that collectively limit buyer remedies. A contract scan can identify all of them.