California Codes, Civil Code - CIV, Division 3 — Obligations, Part 2 — Contracts, Title 4.5 — Liquidated Damages, Chapter 2 — Default on Real Property Purchase Contract, Section 1676
Except as provided in Section 1675, a provision in a contract to purchase and sell real property liquidating the damages to the seller if the buyer fails to complete the purchase of the property is valid if it satisfies the requirements of Section 1677 and the requirements of subdivision (b) of Section 1671.
Notes
Allows a real-property purchase contract to liquidate the seller’s damages if the buyer fails to complete the purchase, except as provided by the specified separate rule, when the clause satisfies the signature and formatting requirements of the following section and the general reasonableness requirements for liquidated damages.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1676 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-2/title-4-5/chapter-2/section-1676