Soaked by White-Collar Crime

Liquidated damages come into play when a buyer or seller defaults on a sale agreement. Rather than litigating the amount of damages caused by the default, the parties agree in advance to specify how much a defaulting party will pay, regardless of what damages were actually suffered. Property sellers...

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Bibliographic Details
Published in:National Real Estate Investor 2010-11, Vol.52 (8), p.64
Main Authors: Eidel, Michael, Sigal, Daniel
Format: Magazinearticle
Language:English
Subjects:
Attorneys
Default
International
Laws, regulations and rules
Liquidated damages
Liquidation
Real estate industry
Real estate sales
Settlements & damages
State court decisions
Online Access:Get full text
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Summary:Liquidated damages come into play when a buyer or seller defaults on a sale agreement. Rather than litigating the amount of damages caused by the default, the parties agree in advance to specify how much a defaulting party will pay, regardless of what damages were actually suffered. Property sellers prefer liquidated damages clauses because if the buyer defaults, they don't have to chase the buyer to recover damages. Because liquidated damages provisions can produce harsh results, the terms must be clear and meet certain requirements to be enforced. Real estate investors and developers need to be familiar with these requirements.
ISSN:0027-9994