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This article will start by analyzing the law in relation to forfeiture of deposit in Ontario and subsequently analyze the full extent of damages that may be available where a buyer fails to close. A separate article will be written to address the law in relation to where a seller fails to close.
When a seller won’t close or does not complete an agreement without cause the seller can be responsible for making the buyer “whole”. This means that the buyer is entitled to be put in the same position as they would have been had the seller completed the transaction as promised and scheduled.
Aug 8, 2022 · If a seller fails to close the real estate transaction, the seller may have to compensate the buyer, especially if the buyer has been financially harmed. If a seller refuses to follow through with the sale, the buyer generally has two options; the buyer can either sue the seller for damages, or the buyer can ask the court to enforce the sale.
Oct 3, 2023 · For example, if one purchaser cannot close on Home A, and the seller is relying on the proceeds of the sale of Home A to close on Home B. Then the seller will be exposed to the purchaser of Home B. In theory, there can be a Home C and Home D and so on and so forth.
Sep 9, 2021 · What to do if a seller doesn’t close a home sale in Ontario. September 9, 2021. Jacob Murad.
Sep 13, 2022 · When a party to a failed real estate transaction is not at fault for the deal’s failure and can demonstrate the property in question is unique, instead of suing for damages, they can request a court order requiring the breaching parties to complete the transaction. This remedy is known as specific performance.
Generally, When A Buyer In a Real Estate Deal Fails to Close the Buyer Is At Risk of Being Sued By the Seller. The Seller May Sue For Extra Carrying Costs, Potential Decrease In a Subsequent Sale Price, and Forfeiture of Any Deposit. The Seller Must Act Reasonably By Minimizing Losses.
