If a buyer defaults, then the obvious remedy is for the seller to forfeit the deposit. But do not forget that the seller will also be entitled to claim damages for the losses arising (and, in a falling market, the decline in property values may well exceed the amount of the deposit). However, there are potential problems when dealing with a special purpose vehicle (ie a company formed specifically for the transaction) since other remedies will simply not be available, because the SPV will have no other assets. Accordingly, if acting for a seller to an SPV, do advise the client that remedies may be limited to forfeiting the deposit, unless the buyer’s parent company (or major shareholder) can be persuaded to act as guarantor.