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As others have stated boods, the vendor loses money because the property is no longer on the market and they have potentially lost opportunities to sell because of it. They now have to put the property back on the market - which again costs them money - because Kath's brother didn't bother...

Might have been a good outcome for your brother, but it was a pretty poor outcome for the vendor. As Bargain Hunter and Tracey said, I would have kept the deposit. At least then I could have gotten back some of the money I'd lost.