Advance a "punitive" function does not carry. In view of this, the party breaching the contract of sale will lose the advance amount. It turns out that these concepts are similar but entail different legal consequences.
The Deposit is applied in cases when the seller of the apartment wants to protect themselves. For example, if the other party, i.e. the buyer refuses the transaction. Thus, the money given as a Deposit under certain circumstances, can be returned.
First, it must be returned if the contract of sale will cease, owing to impossibility of performance or by agreement of the parties. This applies to situations where the amount paid as a Deposit, refundable if the transaction is terminated in circumstances for which it is not responsible neither of the parties.
Second, the failure of the parties to the legal requirements of the agreement on the Deposit. Here it is necessary to remember about the proper drafting of the document, using the specific legal terms (e.g., be aware of the difference between the terms advance and a Deposit). Ie should not substitute each other, of the contract, the terms "Deposit", "advance", "Deposit".
At the time of conclusion of the contract or when making a receipt on transfer of money often indicate that money is transferred as collateral, and not as a Deposit. This is incorrect because the subject of the pledge may not be money. Therefore, the transferred amount cannot be determined neither as a pledge, because it is contrary to the nature of the collateral or as a Deposit, as there is no direct indication that this amount is a Deposit.