In real estate, Forfeiture refers to the loss of money or property rights due to a party’s failure to perform obligations under a contract or agreement. This most commonly occurs when a buyer or tenant fails to meet contractual terms, such as making required payments or complying with lease conditions.
Forfeiture may involve the loss of earnest money deposits, leasehold interests, or contractual rights, depending on the circumstances and applicable law. Because forfeiture can be a severe remedy, courts often require that it be clearly authorized by contract and applied in a fair and lawful manner.
