Return or forfeiture of a deposit


Published by a UUÂãÁÄÖ±²¥ Property Disputes expert
Practice notes
COVID-19

Return or forfeiture of a deposit


Published by a UUÂãÁÄÖ±²¥ Property Disputes expert

Practice notes
COVID-19
imgtext

A buyer's right to the return of a deposit and the seller's right to forfeit the deposit in relation to a property sale and purchase contract are dealt with in the Standard Conditions of Sale (SCS) and the Standard Commercial Property Conditions (SCPCs). This Practice Note explains what the standard conditions provide, whether the court can intervene under section 49(2) of the Law of Property Act 1925 (LPA 1925) and what happens if the buyer has paid no deposit or paid more than 10%.

Buyer’s right to return

A buyer’s right to the return of their deposit is a legal right arising out of Breach of contract by the seller.

The fact that the buyer has, by delay, lost the right to specific performance does not prevent them from recovering it. The SCS (5th edition) and SCPCs (2nd and 3rd editions) (‘Second Edition’ and ‘Third Edition’ respectively) provide that if the seller fails to comply with a notice to complete the buyer can rescind the contract and if they do so they are entitled to repayment

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Forfeiture definition
What does Forfeiture mean?

Forfeiture is the lost right to possession.

Read more

Popular documents

Proprietary estoppel for property disputes lawyers

Proprietary estoppel for property disputes lawyersThis Practice Note discusses issue that arise in proprietary estoppel in a property context. For a general discussion of proprietary estoppel, see Practice Note: Proprietary estoppel.The doctrine of proprietary estoppelProprietary estoppel is a means

Can a deposit held as stakeholder be released if one set of solicitors is unresponsive or provides

Can a deposit held as stakeholder be released if one set of solicitors is unresponsive or provides spurious reasons for withholding consent?When purchasing property (either freehold or leasehold, residential or commercial), usually a deposit is payable on exchange of contracts, which will be held by

Specific performance of property agreements

Specific performance of property agreementsIf a party to a property agreement fails to comply with its obligations, the other party may wish to apply for an order for specific performance. Specific performance is an equitable, discretionary remedy which, if granted, compels a party to perform a

Misrepresentation, misstatement and non-disclosure in property matters

Misrepresentation, misstatement and non-disclosure in property mattersThis Practice Note looks at misrepresentation, misstatement and non-disclosure in property transactions. It covers a seller’s liability for replies given to enquiries before contract, a buyer’s possible remedies for