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California Civil Code Section 1677

Legal Research Home > California Laws > Civil Code > California Civil Code Section 1677

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.

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Last modified: March 17, 2014