Across the country, more homebuyers are walking away from new construction contracts—and losing tens or even hundreds of thousands of dollars in deposits.

We’re seeing it firsthand with large production builders like Toll Brothers and others.

These are not small amounts:

• $50,000 
• $100,000 
• $200,000+ 

And in most cases, the buyer is told:

“The deposit is non-refundable.”
 

So they walk away—assuming that’s the end of it.

It’s often not.

This trend isn’t random. It’s the result of several overlapping factors:

Buyers who signed contracts 12–24 months ago are now dealing with:

• Higher interest rates than expected 
• Changed financial situations 
• Shifting home values in certain markets 

What made sense at contract signing doesn’t always make sense at closing.

New construction contracts are not like resale transactions.

They can stretch over:

• 10 months 
• 14 months 
• Even longer 

During that time:

• Life changes 
• Financing changes 
• Expectations change 

But the contract usually doesn’t.

Most large builders use highly structured agreements that:

• Strongly favor the builder 
• Limit buyer exit points 
• Define deposit forfeiture as “liquidated damages” 

Which leads buyers to believe:

“If I don’t close, I lose everything.”
 

Just because a contract says “non-refundable” doesn’t automatically mean the builder is entitled to keep the entire deposit.

In many cases, courts look at whether:

• The amount kept is reasonable 
• The builder suffered actual financial harm 
• The clause functions as a true estimate of damages—or a penalty 

That distinction matters.

This is where many cases turn.

If a builder:

• Resells the home quickly 
• Resells it at the same price—or higher 
• Avoids carrying costs or losses 

Then the argument becomes:

What damages did the builder actually incur?

Keeping a large deposit in that scenario can become difficult to justify.

Every case is different, but we consistently see opportunities when:

• Missed timelines 
• Extended build schedules 
• Unclear or shifting completion dates 

• Visible defects 
• Incomplete work 
• Concerns raised before closing 

• Design or spec changes 
• Pricing adjustments 
• Lot, drainage, or site issues 

If the situation is more complicated than:

“Buyer simply walked away”
 

There may be room to challenge how the deposit was handled.

Most people make the same mistake:

They accept it.

Before you do that, take a step back and evaluate:

• What does the contract actually say—not just what you were told 
• What happened during the build timeline 
• Whether the builder fulfilled their obligations 
• Whether the home has already been resold 

These details matter—and they often change the outcome.

Recovering a deposit isn’t just about filing a lawsuit.

It’s about:

• Reconstructing the timeline 
• Understanding the contract in context 
• Identifying pressure points 
• Positioning the situation correctly 

In many cases, resolution comes from strategy and leverage—not litigation alone.

We’re seeing a growing number of buyers lose significant deposits under the assumption that there are no options.

That’s not always true.

Some situations are straightforward.
Many are not.

If you’ve lost—or are at risk of losing—a deposit on a new construction home, the most important step is to understand where you actually stand before walking away.

A quick review of:

• Your contract 
• Your timeline 
• The builder’s actions 

can determine whether there’s a path forward.

We work with homeowners to evaluate:

• Deposit forfeiture situations 
• Builder performance and timelines 
• Contract positioning and leverage 

If you’re unsure whether your deposit is truly gone, we can help you understand your options before making a final decision.