If the transfer doesn’t close, what happens to the deposit?

Updated March 13, 2023.

If the transfer fails to close because a contingency cannot be satisfied, it gets returned to the buyer. Similarly, the deposit is returned to the buyer if the transfer fails to close as a result of the fault or breach of the seller, in addition to which the buyer may be entitled to sue the seller for any damages sustained as a result of this breach of contract. However, if the transfer fails to close as a result of the fault or breach of the buyer, the buyer may be required to forfeit the deposit to the seller. In addition, the seller may also be entitled to sue the buyer for further damages sustained as a result of the breach of contract.

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