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Automatic Forfeiture of Deposit Clause (Ontario)

By
Commercial Real Estate Agent with RE/MAX West Realty Inc., Brokerage (Toronto)

Automatic Forfeiture of Deposit Clause (Ontario)

Question:

Is there a clause that says if the Buyer firms up but fails to close that the deposit will automatically go to the Seller?

Answer:

It's ineffective, if someone opposes it. But, that's the effect if you call it a deposit. If you call it a part payment of the purchase price, then, that's not the effect.