How Woodside Homes Uses This Clause
Woodside Homes purchase agreements may include per-diem or penalty charges if the buyer fails to close by the builder's designated closing date. These charges can accrue daily and may apply even when delays are caused by factors outside the buyer's control, such as lender processing times, appraisal delays, or title issues. (Source: common production builder contract pattern)
This provision typically appears in the closing section of the purchase agreement and may specify a daily rate or reference the builder's carrying costs.
Woodside Homes'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
Financial Pressure to Close
Per-diem charges create financial pressure on buyers to close quickly, potentially before resolving inspection findings, punch list items, or financing concerns.
Standard Form Contract
This clause appears in Woodside Homes's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Woodside Homes's operating states.
| State | Status | Note |
|---|---|---|
| Utah | Likely Enforceable | Closing penalty provisions in Utah construction contracts are generally enforceable if the per-diem amount is reasonable in relation to the builder's actual carrying costs. |
| Nevada | Likely Enforceable | Closing penalty provisions in Nevada construction contracts are generally enforceable if the amount bears a reasonable relationship to the builder's damages from delayed closing. |
| Arizona | Likely Enforceable | Closing penalty provisions in Arizona construction contracts are generally enforceable if the amount is reasonable and not punitive. |
| Idaho | Likely Enforceable | Closing penalty provisions in Idaho construction contracts are generally enforceable if the per-diem amount is a reasonable estimate of the builder's carrying costs. |
Related Clauses in Woodside Homes Contracts
This clause often works in combination with other provisions in Woodside Homes's purchase agreements.
Closing penalties and deposit forfeiture together create financial pressure on buyers to close on the builder's timeline.
Disputes over closing penalty charges must be resolved through arbitration.
What Buyers Can Do
- Negotiate mutual closing date flexibility. Request that the contract include provisions allowing reasonable extensions without penalty when delays are caused by factors outside the buyer's control.
- Understand the per-diem rate before signing. Know the exact daily charge amount and when it begins accruing. Calculate the potential cost of a two-week delay to understand your exposure.
- Ensure builder delays trigger reciprocal protections. If the builder misses the estimated completion date, confirm whether the contract provides buyers with equivalent per-diem credits or extension rights.
- Have the full contract scanned before signing. Closing penalties interact with deposit forfeiture and financing provisions. A contract scan can identify all related terms.