How Westport Homes Uses This Clause
Westport Homes purchase agreements govern the conditions under which earnest money deposits may be forfeited upon buyer cancellation. The specific terms of refund eligibility and cancellation windows are set by the builder's contract language.
Deposit forfeiture provisions define the financial consequences of cancellation at various stages of the construction process. As construction progresses, the builder's investment in the home increases, and deposit forfeiture terms may become more restrictive.
Buyers should carefully review the cancellation timeline, understand at what point the deposit becomes non-refundable, and confirm whether contingencies (financing, appraisal, inspection) protect the deposit.
Builder-Specific Details
Construction Progress Timeline
Deposit forfeiture terms may escalate as construction progresses. Early cancellation may result in partial or full refund, while cancellation after construction has begun may result in forfeiture.
Regional Market Context
In the competitive Columbus, Dayton, and Indianapolis markets, earnest money deposits demonstrate buyer commitment. The deposit amount and forfeiture terms should be clearly understood before signing.
Contingency Protections
Financing, appraisal, and inspection contingencies may protect the buyer's deposit under specific circumstances. Buyers should confirm which contingencies are included in the purchase agreement.
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 | Deposit forfeiture provisions in Ohio new construction contracts are generally enforceable if the terms are clearly disclosed and agreed to by the buyer. |
| Indiana | Likely Enforceable | Deposit forfeiture 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.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Buyers cannot join together to challenge deposit forfeiture practices through class action litigation.
If the buyer cannot close on time and the builder terminates the contract, the deposit forfeiture clause determines the financial consequences.
What Buyers Can Do
- Understand when the deposit becomes non-refundable. Review the purchase agreement to determine the exact point at which the deposit becomes non-refundable. This may be tied to construction milestones or specific calendar dates.
- Confirm all contingencies in writing. Ensure that financing, appraisal, and inspection contingencies are documented in the purchase agreement and protect your deposit if these conditions are not met.
- Negotiate deposit terms if possible. While builder contracts are often presented on a take-it-or-leave-it basis, requesting modifications to deposit forfeiture terms in writing is advisable.