If the buyer defaults, the seller is entitled to:
- Resume possession of the property.
- Sue for damages and/or specific performance.
- Retain the deposit.
- Resell the property.
- Recover any costs associated with reselling — including any loss from being forced to sell at a lower price.
Together these give the seller a way to recoup losses and move forward: retaining the deposit and suing for damages compensates for the harm caused by the buyer's failure to complete, while reselling (with the right to recover related costs and any shortfall from the defaulting buyer) lets the seller proceed even if the resale price is lower than the original contract.
A worked example: what a resale deficiency can cost (illustrative only)
These figures are hypothetical — they show how the numbers can stack up. Your actual position depends on the contract, the resale and the court.
| Item | Amount |
|---|---|
| Original purchase price | $900,000 |
| Deposit forfeited by the buyer (10%) | $90,000 |
| Seller resells within a reasonable time at | $780,000 |
| Shortfall on the resale | $120,000 |
| Resale costs (agent, marketing, legal) | $20,000 |
| Total loss to the seller | $140,000 |
| Less deposit already forfeited | -$90,000 |
| Further amount the seller can claim from the buyer | $50,000 |
The takeaway: a defaulting buyer can lose the deposit and be pursued for the rest of the seller's loss — the exposure isn't capped at the deposit.
General information only — not legal advice. Confirm your situation with a licensed conveyancer or solicitor.