How Trendmaker Homes Uses This Clause
Trendmaker Homes purchase agreements have been documented to include deposit forfeiture provisions. The contract may allow the builder to retain the buyer's earnest money deposit if the buyer cancels for reasons not explicitly covered by the agreement.
Forfeiture can occur even when the builder causes delays, changes specifications, or raises prices after signing. As a premium builder, Trendmaker Homes' deposit amounts may be higher than those of entry-level builders, increasing the financial exposure.
Texas courts generally enforce liquidated damages clauses if they are a reasonable estimate of anticipated damages, but provisions that function as penalties rather than reasonable estimates may be challenged.
Builder-Specific Details
Combined with Mandatory Arbitration
Deposit disputes must go through arbitration, where the cost of pursuing a claim may approach or exceed the deposit itself.
Premium Price Point
As a premium builder, Trendmaker Homes' deposit amounts may be larger than those of entry-level builders, increasing the financial risk associated with deposit forfeiture.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Trendmaker Homes's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Deposit forfeiture clauses in Texas new construction contracts are generally enforceable when the amount is a reasonable estimate of anticipated damages. Provisions that function as penalties may be challenged under Texas contract law. |
Related Clauses in Trendmaker Homes Contracts
This clause often works in combination with other provisions in Trendmaker 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.
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. The contract may allow deposit retention even in circumstances beyond your control.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions that collectively limit buyer remedies. A contract scan can identify all of them.