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Mattamy Homes: Closing Penalty

Contract clause analysis

How Mattamy Homes Uses This Clause

Mattamy Homes 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 may accumulate automatically. This creates pressure to close even when unresolved deficiencies remain. A 2017 Global News investigation found Mattamy pressuring Ontario buyers to close on homes with significant deficiencies, including one case where Hamilton building inspectors initially refused occupancy (source: Global News).

This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.

Mattamy 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 Deposit Forfeiture

Together these create dual financial pressure — daily penalties plus potential deposit loss — to force closing.

Standard Form Contract

This clause appears in Mattamy 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 Mattamy Homes's operating states.

StateStatusNote
FloridaLikely EnforceableDaily closing penalty provisions in Florida new construction contracts are generally enforceable...
North CarolinaLikely EnforceableDaily closing penalty provisions in North Carolina new construction contracts are generally...
ArizonaLikely EnforceableDaily closing penalty clauses are generally enforceable in Arizona when structured as liquidated...
TexasLikely EnforceableDaily closing penalty clauses in Texas new construction contracts are generally enforceable when...

Related Clauses in Mattamy Homes Contracts

This clause often works in combination with other provisions in Mattamy Homes's purchase agreements.

DEP-001Deposit Forfeiture

Together these create dual financial pressure — daily penalties plus potential deposit loss — to force closing.

MPS-001Payment Suppression

Closing penalties discourage buyers from delaying to investigate payment discrepancies.

COC-001Certificate of Occupancy

Certificate of occupancy issues may interact with closing deadlines and associated penalties.

PUN-001Punch List Limitation

Closing pressure may lead buyers to accept incomplete punch list work rather than risk penalties.

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 Mattamy Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.
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This article is for informational and educational purposes only. It does not constitute legal advice. Consult a licensed attorney in your state before making legal decisions.