How Westport Homes Uses This Clause
If the buyer cannot close by the date specified in the Westport Homes purchase agreement, the contract may impose per-day financial penalties or grant the builder the right to terminate and retain the deposit.
Closing penalty provisions create financial pressure on buyers to close on the builder's timeline, even if there are unresolved construction issues, financing delays, or other legitimate concerns. The penalty may accrue daily until closing occurs or the contract is terminated.
Buyers should verify whether the contract provides equivalent remedies if the builder causes closing delays. In many builder contracts, closing delay penalties are asymmetric, applying only to the buyer.
Builder-Specific Details
Asymmetric Penalty Structure
Closing delay penalties in builder contracts frequently apply only to the buyer. The builder may not face equivalent penalties for construction delays or failure to complete the home on time.
Pressure to Close with Outstanding Issues
Per-day penalties create financial pressure to close even if there are unresolved punch list items, inspection findings, or construction concerns.
Regional Market Dynamics
In the Columbus, Dayton, and Indianapolis markets, closing timelines may be affected by seasonal construction patterns, subcontractor availability, and material supply chain issues.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Westport Homes's operating states.
| State | Status | Note |
|---|---|---|
| Ohio | Likely Enforceable | Closing penalty provisions in Ohio new construction contracts are generally enforceable if the terms are clearly disclosed. Excessive penalties may be challenged as liquidated damages provisions. |
| Indiana | Likely Enforceable | Closing penalty provisions in Indiana new construction contracts are generally enforceable. |
Related Clauses in Westport Homes Contracts
This clause often works in combination with other provisions in Westport Homes's purchase agreements.
If the buyer cannot close on time and the builder terminates the contract, the deposit forfeiture clause determines the financial consequences.
Closing penalties may pressure buyers to close before completing thorough inspections.
Closing penalties may pressure buyers to close despite habitability concerns.
What Buyers Can Do
- Know the per-day penalty amount before signing. Review the purchase agreement to understand the exact per-day financial penalty for closing delays and when it begins to accrue.
- Verify whether the builder faces equivalent penalties. Check whether the contract imposes any penalties on the builder for construction delays or failure to deliver the home on time. Asymmetric penalty structures favor the builder.
- Ensure financing is in order well before the closing date. Closing delays are often caused by financing issues. Work closely with your lender to ensure all requirements are met well before the scheduled closing date.