Define "forfeiture" in the context of real estate agreements.

Forfeiture in real estate agreements refers specifically to the loss of a deposit or earnest money when a party fails to meet their contractual obligations. This typically occurs when a buyer or lessee does not perform as stipulated in the contract, such as not completing the purchase or leasing transaction within a designated timeframe. The deposit acts as a form of security for the seller, encouraging the buyer to fulfill their obligations. If the buyer defaults, the seller is entitled to retain the deposit, which is why forfeiture is closely tied to the concept of financial penalties for non-performance in a property transaction. This serves both as a deterrent against non-compliance and as a way for the seller to recoup some of their potential losses.