When can the buyer claim the return of the deposit?

The buyer can claim the return of the deposit when the seller repudiates the contract because repudiation indicates that the seller has demonstrated an unwillingness or inability to fulfill their obligations under the contract. This breach gives the buyer the right to withdraw from the agreement and seek the return of their deposit.

In cases where the seller explicitly states that they will not proceed with the sale, or they engage in actions that fundamentally undermine the contract, this allows the buyer to secure their deposit back without further obligations. The principle here is that when one party fails to honor the agreement, the other party is entitled to back out and reclaim any funds they've put in, such as a deposit.

While notifying the seller of withdrawal is a step taken by the buyer when they choose to terminate the contract, it does not guarantee the return of the deposit unless the seller had already demonstrated intent to breach the agreement. The seller's financial situation, such as not paying their mortgage, is not directly relevant to the entitlement of deposit return unless it leads to a breach that the buyer can act upon. Lastly, simply passing the completion date does not automatically allow for return of the deposit unless one of the parties did not fulfill their contractual obligations.