Selling and buying are never easy, and it can get even more complicated (and expensive) when a house sale falls through in the final stages.

There are a number of reasons this might happen, but when it does the question we get asked immediately is what happens to the deposit?

That depends on what stage of the sale you were in when the sale went sour. If it’s during the ‘conditional’ part, then the buyers will get the deposit returned, as long as the reason the deal died was due to one of those conditions not being met.

If the deal collapses after the conditions have been met, we call that being‘firm, than it’s the seller who keeps the deposit, as a form of compensation.

In both cases, the brokerage of record will hold the deposit until both parties sign a mutual release to return the money to whoever is entitled to it.

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