sec.85Seller may forfeit deposit of no more than 20 per cent if buyer breaches contract for sale of proposed lot

### sec.85 Seller may forfeit deposit of no more than 20 per cent if buyer breaches contract for sale of proposed lot This section applies in relation to a contract for the sale of a proposed lot. The contract may provide for a sum of not more than 20% of the purchase price of the proposed lot that is paid under the contract as a deposit, whether paid in 1 or more amounts, to be forfeited and retained by the seller in the event of a breach of the contract by the buyer. However, the sum mentioned in subsection (2) may only be forfeited or retained by the seller if the breach of the contract by the buyer results in termination of the contract. The sum mentioned in subsection (2) is not, either at law or in equity, a penalty if the sum is forfeited or retained by the seller under subsection (3) . (sec.85-ssec.1) This section applies in relation to a contract for the sale of a proposed lot. (sec.85-ssec.2) The contract may provide for a sum of not more than 20% of the purchase price of the proposed lot that is paid under the contract as a deposit, whether paid in 1 or more amounts, to be forfeited and retained by the seller in the event of a breach of the contract by the buyer. (sec.85-ssec.3) However, the sum mentioned in subsection (2) may only be forfeited or retained by the seller if the breach of the contract by the buyer results in termination of the contract. (sec.85-ssec.4) The sum mentioned in subsection (2) is not, either at law or in equity, a penalty if the sum is forfeited or retained by the seller under subsection (3) .