Becker & Poliakoff

Liquidated Damages and Your Listing Agreement

Liquidated Damages and Your Listing Agreement

Q: Will the courts enforce the liquidated damages provision in my listing agreement?

A: That depends on a few things.

A liquidated damages provision in a listing agreement sets forth the amount of money both parties agree will be paid to the broker in the event that certain events occur, including, first and foremost, the seller’s breach of the agreement.