Full text of Washington Revised Code of Washington § 64.04.005 — Liquidated damages — Earnest money deposit — Exclusive remedy — Definition., with citation guidance and answers to common questions.
§ 64.04.005. Liquidated damages — Earnest money deposit — Exclusive remedy — Definition.
(1) A provision in a written agreement for the purchase and sale of real estate which provides for liquidated damages or the forfeiture of an earnest money deposit to the seller as the seller's sole and exclusive remedy if a party fails, without legal excuse, to complete the purchase, is valid and enforceable, regardless of whether the other party incurs any actual damages. However, the amount of liquidated damages or amount of earnest money to be forfeited under this subsection may not exceed five percent of the purchase price.
(2) For purposes of this section:
(a) "Earnest money deposit" means any deposit, deposits, payment, or payments of a part of the purchase price for the property, made in the form of cash, check, promissory note, or other things of value for the purpose of binding the purchaser to the agreement and identified in the agreement as an earnest money deposit, and does not include other deposits or payments made by the purchaser; and
(b) "Liquidated damages" means an amount agreed by the parties as the amount of damages to be recovered for a breach of the agreement by the other and identified in the agreement as liquidated damages, and does not include other deposits or payments made by the purchaser.
(3) This section does not prohibit, or supersede the common law with respect to, liquidated damages or earnest money forfeiture provisions in excess of five percent of the purchase price. A liquidated damages or earnest money forfeiture provision not meeting the requirements of subsection (1) of this section shall be interpreted and enforced without regard to this statute.
Notes
Application—2005 c 186: "This act applies to all contracts executed after April 26, 2005." [
2005 c 186 s 2.]
Effective date—2005 c 186: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [April 26, 2005]." [
2005 c 186 s 3.]
Application—1991 c 210: "The provisions of this act apply only to written agreements entered on or after July 28, 1991." [
1991 c 210 s 2.]
Source: official Washington text · Last verified 2026-08-27
Frequently Asked Questions About Washington § 64.04.005
What does Revised Code of Washington § 64.04.005 cover?
Section 64.04.005 ("Liquidated damages — Earnest money deposit — Exclusive remedy — Definition.") is part of the Revised Code of Washington, the codified statutory law of Washington. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Washington § 64.04.005?
A common citation format is "Revised Code of Washington § 64.04.005" (Washington). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Washington law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Washington official source linked on this page or consult a licensed Washington attorney.
How does Washington § 64.04.005 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Washington can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Washington.
