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What happens to the deposit on a house if the deal falls through

If A House Sale Falls Through Who Gets The Deposit (Can Seller Keep Deposit)

In England and Wales either the buyer or the seller can pull out at any stage before exchange of contracts. There aren’t usually any financial consequences of pulling out at up to the point of exchange, except for each party will be liable for any costs they’ve each incurred up to that point. But if either the buyer or the seller pulls out after contracts have been exchanged, the party who’s in breach will be liable for damages and will forfeit the deposit, which is normally 10% of the contract price.

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