Liquidated Damages
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
Liquidated damages are an amount the parties agree in a contract, in advance, to be paid if one party breaches. In real estate purchase contracts, the buyer's earnest money deposit is often the seller's liquidated damages if the buyer defaults.
Agreeing on the number up front avoids a fight later over how much the breach actually cost.
Enforceability
Courts generally enforce a liquidated damages clause when actual damages were hard to estimate at signing and the agreed amount is a reasonable estimate rather than a penalty. A clause that functions as a penalty may not be enforced. Specific outcomes depend on the contract and the court.
In Purchase Contracts
Many commercial contracts make the deposit the seller's sole remedy for a buyer default, while giving the buyer other remedies, such as specific performance, if the seller defaults. Read the default section alongside the deposit terms in the letter of intent and contract.
A Hypothetical Example
A buyer puts up a $100,000 deposit on a $2.5 million industrial building and later walks away after the inspection period. Under the contract, the seller keeps the deposit as liquidated damages and cannot pursue further damages. Hypothetical scenario; not legal advice.
From the Desk
Know when your deposit goes hard and what it buys the seller. That date matters more than the price on day one.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39 years in commercial real estate, first in Chicago, now in Florida, across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Liquidated Damages Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years in commercial real estate, first in Chicago and now in Florida, with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What are liquidated damages?
A pre-agreed amount paid if a party breaches the contract.
Is earnest money liquidated damages?
Often, if the contract says the deposit is the seller's remedy for buyer default.
When are they enforceable?
Generally when actual damages were hard to estimate and the amount is reasonable, not a penalty.
Can the seller also sue for more?
Not if the deposit is the sole and exclusive remedy.
What remedies might a buyer have?
Often specific performance or return of the deposit, per the contract.
Article Summary
Liquidated damages are a pre-agreed breach remedy; in CRE purchase contracts the buyer's deposit often plays that role.
Key Takeaways
- ✓Agreed in advance.
- ✓Often the deposit.
- ✓Must not be a penalty.
- ✓Can be sole remedy.
- ✓Know when it goes hard.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39 years in commercial real estate, first in Chicago and now in Florida, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 9, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: Linton Global Solutions is a Florida-licensed real estate brokerage, not a broker-dealer, investment adviser or lender, and does not offer or sell securities. CREDDS and REOMind.ai provide decision support only. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.