Most real estate transactions proceed smoothly to closing. However, occasionally a buyer or seller may attempt to back out of the deal without just cause. For example, a seller may get emotional and not want to leave his long time residence. Or a buyer may decide that she is paying too much for the house and try to walk away from the contract. In such cases, the party wishing the transaction to proceed must be ready, willing and able to close, and first invoke time of the essence (https://www.middlesexcountynjrealestateattorney.com/time-of-the-essence/). If the other party fails to close on the time of the essence date, then the non-breaching party may file a lawsuit against the other party for damages. If the lawsuit is against the buyer, and there is a contract deposit, then the deposit will be held pending the outcome of the lawsuit to be used to compensate the seller if the seller prevails in the case.