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California Code, Civil Code - CIV § 1677

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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.

Cite this article: - California Code, Civil Code - CIV § 1677 - last updated January 01, 2019 |

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