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 1677
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 invalid unless:
(a) The provision is separately signed or initialed by each party to the contract; and
(b) If the provision is included in a printed contract, it is set out either in at least 10-point bold type or in contrasting red print in at least eight-point bold type.
Notes
Requires a real-property purchase contract’s seller liquidated-damages clause to be separately signed or initialed by every party. If printed, the clause must appear in at least 10-point bold type or in contrasting red print of at least eight-point bold type; otherwise the clause is invalid.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1677 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-2/title-4-5/chapter-2/section-1677