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Professional Publishing, of which I am counsel, publishes real estate forms for the western United States through its software provider TrueForms.com. We also sponsor risk management classes approved the California Department of Real Estate. In our forms we limit damages in the event of buyer's default in a residential transaction to 3% of the purchase price as required by California Civil Code section 1675. If the amount of liquidated damages exceeds this amount, the seller has the burden of proving that the amount actually paid is reasonable. Normally, a special addendum signed by the parties at the commencement of the transaction is required to justify the excessive damages. This is seldom done.