Non completion after deposit

[Billy]

Great site!

Can someone pls clarify the consequences of not completing a purchase after having signed a pre contract (predugovor) and having paid in a deposit?

I have heard you lose the full amount of your deposit and nothing more.

Thanks,

Billy

[Peter Ellis]

Hi Billy

Legally the vendor is entitled to retain your deposit if you fail to complete after doing a Pre-Contract and this is normally included as a clause in the Pre-Contract. Conversely if the vendor fails to complete, they have to return you double the deposit.

If there are extenuating circumstances, vendors will sometimes return your deposit, but they are under no legal obligation to do so and usually do retain them, particularly if they have turned other buyers away.