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Exam term

Residential liquidated damages rule

Under Civil Code section 1675, for a dwelling of up to four units the buyer intends to occupy, an amount actually paid of 3 percent or less of the price is valid unless the buyer proves it unreasonable; above 3 percent the seller must prove it reasonable.

Lessons that use this term

  • Performance, breach, remedies, and discharge of contracts California
  • Purchase contracts: contingencies, deposits, and liquidated damages California

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