How Meritage Homes Uses This Clause
Meritage Homes purchase agreements have been documented to include daily closing penalty provisions. If the buyer cannot close by the contractually specified date, the agreement may impose per-day financial penalties. These charges can accumulate even when delays are attributable to the builder's own affiliated lender or title company.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Meritage 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
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 Meritage 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 Meritage Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Daily closing penalty clauses in Texas new construction contracts are generally enforceable when... |
| Arizona | Likely Enforceable | Daily closing penalty clauses are generally enforceable in Arizona when structured as liquidated... |
| California | Uncertain | California applies heightened scrutiny to liquidated damages provisions in residential real estate... |
| Colorado | Likely Enforceable | Colorado courts generally enforce per-diem closing penalty provisions when they qualify as... |
| Florida | Likely Enforceable | Daily closing penalty provisions in Florida new construction contracts are generally enforceable... |
| Georgia | Likely Enforceable | Georgia generally enforces per-diem closing penalty provisions when structured as liquidated... |
| 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... |
| Tennessee | Likely Enforceable | Tennessee courts generally enforce per-diem closing penalty provisions when they qualify as... |
Related Clauses in Meritage Homes Contracts
This clause often works in combination with other provisions in Meritage Homes'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.
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.
The scheduled closing-penalty schedule narrows the buyer's walkthrough decision window, making acceptance of incomplete punch list work the path that avoids per-diem accrual.
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 Meritage Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.