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Definition

To forfeit a deposit or down payment.

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How it's used

Originating from the property market, this term specifically refers to the act of abandoning a transaction after paying an initial deposit. It carries a sense of financial loss and broken commitment, often used in contexts involving real estate or high value contracts. The term implies that the buyer has decided to walk away rather than complete the purchase.

Examples

He forfeited the deposit on the property and lost hundreds of thousands.
If you don't have enough money to pay the balance, do you have to forfeit the deposit?

Related words

Common phrases

forfeiting a property deposit

Common mistake

Learners often confuse this with general cancellation, but it specifically implies the loss of the deposit as a penalty for backing out of a signed agreement.

Grammar color guide

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