Non Refundable Deposit Example
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FAQ
You can say, "Here's what we agreed to. You'll see that the deposit is non-refundable." Sleep on it. Don't ever make decisions at the height of emotion or under stress.
For a deposit to be not refundable and enforceable, the amount has to be reasonable compared to the actual loss that occurred as a result of the breach of contract. In California real estate deals, deposits are governed by law and contract. With a good lawyer on your side an earnest money deposit is always refundable.
The basic principle of a non-refundable deposit is to take payment in advance to avoid a future loss if the other party changes its mind.
This means that if the buyer cancels the contract before it is carried out, the money will not be returned.
Refundable deposits represent restricted cash because the money must be returned to the customer at a future date. The easiest example is a security deposit that you pay your landlord at the start of the...