• rescind the contract then claim forfeiture of the 10% deposit (and payment of any outstanding balance); and also claim damages; or
• affirm the contract and thus claim immediate payment of any outstanding balance of the 10%; require specific performance of the contract; and also claim damages taking account of compensation interest under Standard Condition 7.3.

In a falling market, most sellers will want to rescind if the buyer defaults. For instance, imagine a situation in which contracts were exchanged in 2007 for a £200,000 new-build apartment, with the buyer paying 5% of the contractual 10% deposit. The building has now been finished and the buyer has failed to complete. In that situation, the seller will normally rescind and forfeit the deposit (ie the 5% already paid, and immediately claim the other 5% due). In addition, he will claim the diminution in value of the property (ie the collapse in property prices), as well as wasted sales and related legal costs. The key point, of course, is that there is an entitlement to the deposit and the diminution in property value.© Practical Lawyer