Late Change of Mind by Purchaser – Remedies

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(Ontario)

Question:

House sells multiple offers! Winning offer over asking. Seller accepts offer conditional on inspection and financing. Good deposit. Home inspection reveals possible moisture issue in basement. Buyer looks for abatement. Sellers says maybe? Basement finished for 30 years doesn’t know, but it could be. Never noticed an issue other than a hot water tank issue years ago. Seller agrees to not look at other offers and takes the offer accepting the abatement.

During walk through buyer decides the problem is worse than they thought. Buyer decides not to close. Buyer refuses to release deposit to seller. What happens next?

Answer:

It would appear that the deal was done. The time to negotiate ended with the price abatement. No more talking or negotiating after that. The “walk through” is to assess that there isn’t any change or damage to the premises. So, if there was a brand new flood that would be different. If it was essentially the same as the inspection time, then, the only remedy was a price reduction, and that was negotiated and obtained.

Now, the Seller assesses his damages and applies the deposit towards that and sues for any deficiency.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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