In what situations is liquidated damages clause relevant?
Asked on May 22nd, 2018 on Real Estate - Pennsylvania
More details to this question:
My buyers are under contract and already signed/ agreed to one extension. Looks like possibly another extension is coming or termination because the property is being sold by son of homeowner using POA. The listing agent never had the POA verified so we only knew there was a problem when I sent POA to my title company. In the meantime, buyers are paying for stuff in storage.
If you're using the standard PAR Agreement, this is spelled out fairly specifically. Liqudated damages would only be relevant in the event of a default by buyer where the agreement is terminated.
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