Liquidated Damages Clause Can Be Valuable, But May Be Misunderstood

Liquidated Damages Clause Can Be Valuable, But May Be Misunderstood: Is a liquidated damages clause a good thing to have in a real estate contract? If so, for whom is it good? The buyer? The seller? Both? Like so many questions in real estate, and life in general, the first answer to such questions is, "It depends." Before we get into that, though, a word about what a liquidated damages clause is.