What does "forfeiture" mean in real estate terms?

In real estate terms, "forfeiture" refers to the loss of property rights due to non-compliance with legal obligations. This typically occurs when an individual fails to meet specific terms outlined in a contract or legal agreement, resulting in the automatic loss of their interest in the property. Forfeiture can happen in various contexts, such as when a property owner neglects to pay property taxes, defaults on a mortgage, or violates zoning regulations.

Understanding this concept is vital for real estate professionals because it highlights the importance of adhering to legal agreements and the potential consequences of failing to do so. It clarifies that forfeiture is not related to temporary restrictions or rights to reclaim property, but rather a permanent loss resulting from legal non-compliance.