Former Real Estate Agent here and I would NEVER I mean NEVER EVER allow my client to sign any contract for new home or resale agreeing to pay a penalty for a late closing. Naca Purchase Handbook explicitly says not to agree to that in any P&S Contract. I don’t think you can blame all those fees on NACA if you advised your clients to agree to that. I’m thinking there has to be something else going on which I don’t want to get into because I don’t know your clients situation. I am sorry this is happening to your clients. I would have advised them a long time and tens of thousands of dollars ago to apply for conventional financing with the builders lender. Good luck to them but they should have jumped ship a while ago.
Our realtor team shared their experiences (they worked for a builder and currently are real estate agents) and stated, for new builds, that a builder will not change their wording to add waiver of penalties on behalf of the buyer when using an outside lender. You may get more leeway from resales, but builders want properties off their books. When we spoke with the builders sales team, they were shocked our lender wouldn’t cover late fees and said they never heard of buyers having to pay late fees. They were confused as to why we cared so much about the fees until we told them, it comes out of our pockets. The builder thought they were punishing the lender (our interpretation), not the buyer. With that being said, the builder told us they’ll waive the fees for March for us but the further we get into April, they will start to charge us again.