Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Forfeiture means losing any property without any compensation due to defaults on any contractual commitments or responsibilities, or as penalties for any illegal action or conduct. Forfeiture indicates giving up ownership of any asset by the defaulting/guilty party or even its cash flows, as the compensation to the aggrieved or wronged party in question. It is often mandated as a punishment or penalty by the law. It may also involve any non-performance of legal obligations or contractual duties. This may lead to the forfeiture of assets or funds generated by properties or real estate assets.
Forfeiture clauses are often seen in the property and real estate sector. They are often contained in many real estate agreements. This mandates how owners will legally forfeit their properties upon defaulting on the terms and conditions of specific contracts/agreements. Hence, this may also apply in case of property owners or borrowers defaulting on mortgages or even those defaulting on the payment terms for real estate related transactions.
