On occasion, a deposit can be too large. Then, it becomes something of a penalty if it’s lost. The Court has the right to grant “relief from forfeiture” when it’s …
The Basic Law about Deposits in Ontario
Although the issue comes up from time to time, the leading case on the subject of deposits is De Palma v Runnymede (1949) in the Ontario Court of Appeal. The …
Buyer Defaults, but Seller is Cautious
The Buyer is about to default on the deal. The Seller will let them out of the deal and give them their deposit back as long as deal #2 closes …
When Does a Seller have to Mitigate in a Defaulted Real Estate Transaction?
This is an interesting question and hundreds of thousands of dollars can turn on the answer. Recently, the Ontario Superior Court of Justice had to consider that question. The Buyers, …
Deposit is Irrelevant to Contract Formation in Ontario
The concept of a deposit is irrelevant to contract formation. It is just purely and simply another term in the contract. In fact, it’s not even a necessary term. There …
Late Delivery of Deposit
Question: If a buyer brings deposit for the property after 24 hours of offer acceptance; does the purchase and sale agreement need to be amended for the deposit time? Answer: …
Is a Deposit Consideration for a Contract?
This question keeps coming up, so let’s have a look at it. There are a few things to consider when we are talking about a contract. First of all, you …
Deposit Cheque and the Real Estate Trust Account
Question: How many days do you have to make a deposit into the real estate trust account from the acceptance date? Answer: Assuming that the deposit is due upon acceptance, …
Deposits and Consideration
Question: You are trying to explain to a new salesperson in your office the purpose of a deposit when negotiating the terms of the Agreement of Purchase and Sale. Which …
“Earned Payment Non-refundable Deposit” Clause
Ontario We looked at the issue of the proper need to adjust the wording in respect to a non-refundable deposit. If someone purchases a product over the internet for $5,000.00 …