Civil Code 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.

Source: Section 1677, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CIV§ionNum=1677.­ (accessed May 19, 2025).

Last Updated

May 12, 2025

§ 1677’s source at ca​.gov