So confirmation of acceptance is signed. Both parties complete acknowledgement.
Buyer does not deliver deposit. Buyer is in breach of contract.
Seller doesn’t sign mutual release.
Seller relists home, sells.
Before closing buyer 1 wants to deliver deposit and proceed with purchase? Is there a time limit for the buyer to remedy the breach?
There is no time limit for a Buyer to remedy a breach. A breach of contract is a breach. That’s it. No second chances! That’s the case unless the Seller compromises their position and decides to extend extra time to the Buyer (which I assume didn’t happen here).
Assuming that the contract was terminated for the breach, and subsequently sold to Buyer 2, then, it’s Buyer 2 who has an equitable interest in the property.
Buyer 1 is simply a former buyer who is in breach of a contract that was terminated. They have no rights whatsoever, other than the right to be treated fairly in the lawsuit.
Buyer 1 should throw the deposit into the hands of the Seller and offer to buyout Buyer 2 by paying a premium to their purchase price. Actually, nobody wants to do this, but ultimately it might be the best choice from a financial perspective.
Brian Madigan LL.B., Broker