In Jamaica, if a buyer does not complete a real estate transaction (i.e., they fail to close the sale after signing the Sale Agreement), the deposit is typically forfeited—unless the failure to complete is due to the seller’s breach or a mutually agreed-upon reason.
Here’s a breakdown:
1. Standard Contract Terms
In most Sale Agreements (prepared by attorneys), there is a forfeiture clause stating that if the buyer fails to complete the sale without lawful excuse, the seller may retain the deposit as liquidated damages.
The deposit is usually 10% of the purchase price, held in trust by one of the attorneys involved (usually the vendor’s attorney).
2. Lawful Excuses / Exceptions
If the seller breaches the agreement (e.g., fails to provide a good title or doesn’t complete their part), the buyer may be entitled to a refund.
If the contract includes specific conditions (like subject to financing or sale of another property) and those conditions aren’t met, the buyer may withdraw without forfeiting
