Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Forfeiture definition

What does Forfeiture mean? Forfeiture describes the loss of a right, estate or property because of breach, wrongdoing or a statutory power, so the holder’s title or right to possession ends without compensation. It is a descriptive term used across several areas of practice, with detailed rules set by legislation and case law. In landlord and tenant law, forfeiture of a lease (England & Wales and Northern Ireland) allows a landlord to end the tenancy for breach where a forfeiture clause exists. Except for rent arrears, a section 146 notice is generally required and the landlord must re-enter peaceably or obtain a court order....

Property sale deposits under SCS/SCPC: return, forfeiture, section 49(2) LPA 1925 discretion, penalties over 10%, non-payment and void contracts (England and Wales)

Published by a LexisNexis Property Disputes expert

Practice notes

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)

The Standard Conditions of Sale (SCS) and the Standard Commercial Property Conditions (SCPCs) set out a purchaser’s entitlement to recover a deposit and a seller’s entitlement to keep it in the context of a property sale and purchase. This Practice Note outlines what those standard provisions state, considers whether the court can intervene under section 49(2) of the Law of Property Act 1925, and explains the position if the buyer has paid no deposit or has paid over 10%. The general principle is that a deposit serves as an ‘earnest for performance of the contract’ and will be forfeited if the buyer does not complete

Buyer’s right to return

A buyer’s entitlement to the return of their deposit is a legal right arising from the seller’s Breach of contract. The mere fact that the buyer has, by delay, lost the right to specific performance does not stop them from reclaiming the deposit...

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Web page updated on 21/05/2026

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