What does "forfeiture" mean in relation to real estate contracts?

Forfeiture in relation to real estate contracts refers to the loss of a right or privilege that occurs when one party fails to perform a part of the contract. This means that if a party does not meet their obligations under the terms of the agreement—such as failing to make payments or not adhering to specific conditions—they may lose their interest or stake in the property. Essentially, forfeiture acts as a legal consequence for non-compliance, ensuring that parties uphold their commitments in a contract. This concept is crucial in real estate transactions, as it helps to protect the interests of all involved and maintain the integrity of agreements.