The Ontario Court of Appeal recently upheld a summary judgment decision of the lower Superior Court that required the prospective purchasers of a property to pay damages to the seller for their failure to complete a real estate transaction.
In this case, the prospective purchasers were unable to obtain financing in order to close the real estate transaction with the seller. However, unfortunately, the agreement of purchase and sale at issue between the parties was not conditional on the prospective purchasers being able to obtain financing for the property in order to close.
As a result, the prospective purchasers were unable to close the transaction and the seller relisted the property for sale. The property was subsequently sold to another purchaser but at a lower purchase price. The seller then commenced an action seeking damages for the loss in the property's value and was successful against the prospective purchasers for their failure to close.
Situations like these are increasingly on the rise with the monumental increases in interest rates and the corresponding decrease in property values. Fortunately, we here at BPR Litigation have experience in dealing with real estate litigation and we are happy to help guide you through your options.
* Please note that the above description is for general information purposes only and is not to be construed as legal advice, as your specific situation may differ and require individual attention.*
For more information on your specific situation contact one of our litigation lawyers by booking a consultation online at www.bprlitigation.com, emailing us at justin@bprlitigation.com, or reaching us by phone at416-512-2529, and we would be happy to arrange an in-person or virtual consultation in order to assist you.