Soaked by White-Collar CrimeNovember/December 2010 – Articles National Real Estate Investor
Kevin Phelan set out to buy the opulent 72,000 sq. ft. former headquarters of Adelphia Communications in Coudersport, Pa. in 2008. That’s when his trouble began. He was double-crossed by his real estate attorney, and the money deposited in the attorney’s trust account for the purchase was soon packed aboard a plane headed to South America.
Phelan probably never imagined that, having been the victim of his attorney’s crime, he would still lose his $1 million deposit when he defaulted on the closing of the property. The liquidated damages clause in his contract, an often-overlooked contract provision in commercial real estate transactions, made a million-dollar difference.
View entire article - A Tough Lesson: Don’t Overlook a Contract’s Liquidated Damages Provision