How Stanley Martin Uses This Clause
Stanley Martin purchase agreements have been documented to include daily closing penalty provisions. If the buyer cannot close by the specified date, the contract may impose per-day financial penalties or allow the builder to terminate the agreement and retain the deposit. These penalties can apply even when the delay results from circumstances outside the buyer's control, such as lender processing delays.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Stanley Martin'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 Stanley Martin'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 Stanley Martin's operating states.
| State | Status | Note |
|---|---|---|
| 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.... |
| Georgia | Likely Enforceable | Georgia generally enforces per-diem closing penalty provisions when structured as liquidated... |
Related Clauses in Stanley Martin Contracts
This clause often works in combination with other provisions in Stanley Martin's purchase agreements.
Together these create dual financial pressure — daily penalties plus potential deposit loss — to force closing.
Inspection restrictions combined with closing pressure limit the buyer's ability to identify defects before closing.
Certificate of occupancy issues may interact with closing deadlines and associated 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 Stanley Martin contracts that collectively limit buyer remedies. A contract scan can identify all of them.