How Sabal Homes Uses This Clause
Sabal 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 that accumulate until closing occurs or the contract is terminated.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. The daily penalty amount varies but can add up to a significant sum over even a short delay.
As a Lowcountry regional builder operating in Charleston, Mount Pleasant, and Summerville, Sabal Homes' contract templates are generally consistent across its markets.
Builder-Specific Details
Combined with Deposit Forfeiture
If a buyer faces both daily closing penalties and deposit forfeiture, the financial exposure from delays can compound quickly.
Standard Form Contract
This clause appears in Sabal Homes' 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 Sabal Homes's operating states.
| State | Status | Note |
|---|---|---|
| South Carolina | Likely Enforceable | Daily closing penalty clauses in South Carolina new construction contracts are generally enforceable as liquidated damages provisions, provided the per-day amount is a reasonable estimate of the builder's carrying costs and not a penalty. South Carolina courts examine reasonableness at the time the contract was formed. |
Related Clauses in Sabal Homes Contracts
This clause often works in combination with other provisions in Sabal Homes's purchase agreements.
Deposit forfeiture and closing penalties can compound financial exposure if a buyer cannot close on time.
Inspection restrictions may prevent buyers from identifying issues that could delay closing.
What Buyers Can Do
- Confirm your financing timeline before signing. Ensure your lender can meet the closing date specified in the contract. Delays in loan processing are one of the most common triggers for closing penalties.
- Negotiate the penalty amount and grace period. Ask whether the builder will agree to a lower per-day amount or a grace period before penalties begin. Even a few days of buffer can prevent unnecessary financial exposure.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Sabal Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.