I am the Listing agent. I just did a deal with Status as the only condition. Status is fine. Buyers are backing out. They did not drop deposit cheque off.
Condition: There is an obligation to proceed in good faith and perform the contract. Assuming something wrong with the Status Certificate, then, the Buyer would have the opportunity to withdraw. If there is nothing wrong, then the Buyer must proceed with the contract. The law on this point changed a few years ago.
Deposit: There is an obligation to deliver the deposit cheque on time. Failure to do so, places the Buyer in breach of contract. It does not vitiate the contract or bring it to an end. The Seller may elect to terminate the contract and sue for damages. The amount of the deposit would be the minimum amount that a Court would award.
Brian Madigan LL.B., Broker