Late Deposit

Question

Buyer’s deposit cheque arrives late. Buyer proceeds with fulfilling conditions and submits necessary documents.

Seller requests preparation of mutual release and signs same. Buyer refuses to sign. Is the Seller stuck with a binding agreement?

ANSWER

Time is of the essence, that’s down to the minute. An excuse like “I was just bringing it over to your office when…..” won’t work.

I had at least a half dozen cases this year (none of my own) where the Seller (who expected a better Offer from Buyer 2) wanted out of the deal.

So, the Listing Agent was instructed not to initiate any contact, not to send out a reminder, and sit at the Brokerage’s office, monitor the time closely, all with the expectation, that one minute late is not going to be acceptable. That will be a breach, the Seller will act on the breach and sell to B2.

Brian Madigan LL.B., Broker

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