You sell a property but when it comes to the crunch the buyer can’t pay the required deposit. You have to cancel the sale and can only resell at a lower price and by paying an estate agent to help you. Can you claim damages to cover all your losses from the defaulting buyer?

Or perhaps you are on the other side of the coin, a buyer about to sign a sale agreement. How certain should you be that you can meet all the obligations you are committing yourself to, and what happens if you breach the agreement?

A recent High Court decision, in which a defaulting buyer not only lost her property but is now down some R280k plus some serious legal costs, provides key lessons for both buyers and sellers.