How Maronda Homes Uses This Clause
Maronda Homes purchase agreements have been documented to include deposit forfeiture / earnest money trap provisions. When a purchase contract is terminated, Maronda Homes has retained a portion of the buyer's deposit to cover marketing and carrying costs. In Anderson v. Maronda Homes, the buyer paid a $10,197 deposit but only $7,697 was returned upon contract termination, with Maronda retaining $2,500. The buyer's claim under the Florida Deceptive and Unfair Trade Practices Act was directed to arbitration. Buyers should clarify deposit forfeiture terms and any deductions the builder may apply upon cancellation. (Source: Anderson v. Maronda Homes Inc. of Florida, Florida 5th DCA, 2012) This clause has been the subject of litigation, including Anderson v. Maronda Homes Inc. of Florida.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Maronda 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 Mandatory Arbitration
Deposit disputes must go through arbitration, where the cost may approach or exceed the deposit itself.
Standard Form Contract
This clause appears in Maronda 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.
Legal History
The following cases involve Maronda Homes's use of this clause type.
Anderson v. Maronda Homes Inc. of Florida
Vivian Anderson contracted to purchase a new home from Maronda and paid a $10,197 deposit. After the contract was terminated, Maronda returned only $7,697, retaining $2,500 for marketing and carrying costs. Anderson filed claims under the Florida Deceptive and Unfair Trade Practices Act and sought class action arbitration. The arbitrator issued a clause construction award holding that class arbitration was not permitted under the contract, and the trial court confirmed this award. The case illustrates both Maronda's deposit retention practices and the enforcement of its mandatory arbitration clause with class action prohibition. (Source: FindLaw, Florida 5th DCA, Case No. 5D10-3218, 2012)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Maronda Homes's operating states.
| State | Status | Note |
|---|---|---|
| Florida | Likely Enforceable | Florida courts generally enforce deposit forfeiture provisions in new construction contracts when... |
| Ohio | Likely Enforceable | Ohio courts enforce liquidated damages provisions when the amount is reasonable and the damages were... |
| Pennsylvania | Likely Enforceable | Pennsylvania courts enforce liquidated damages provisions when the amount is a reasonable... |
| Georgia | Likely Enforceable | Georgia courts enforce liquidated damages provisions when the amount is a reasonable pre-estimate of... |
Related Clauses in Maronda Homes Contracts
This clause often works in combination with other provisions in Maronda Homes's purchase agreements.
Deposit disputes must go through arbitration, where the cost may approach or exceed the deposit itself.
Closing penalties can create pressure to close quickly, and failure to close may trigger deposit forfeiture.
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
Buyers who discover hidden costs after signing may face deposit forfeiture if they attempt to cancel.
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. Maronda Homes's contract may allow deposit retention even in circumstances beyond your control.
- Review the Anderson case. The Anderson v. Maronda Homes Inc. of Florida ruling may be relevant to your situation. If you are buying a Maronda Homes home in a state with similar legal protections, this precedent could affect the enforceability of this clause.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Maronda Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.