Question:
Buyer and Seller enter into an Agreement of Purchase and Sale. It is unconditional.
- 5 days before scheduled closing Seller has signed all paperwork with lawyer for closing
- 2 days before closing Seller passes away suddenly. (Only Seller on title)
The contract remains in place as set out in the “Successors and Assigns” paragraph.
Is it possible to still close on original date given the Seller signed everything or does the contract get paused and probate be completed to close
Given the closing is so close, (assuming delay) does the Buyer have any right to compensation?
Answer:
The agreement stays in place, the difficulty is whether al the correct documents have been signed, so the transaction can close.
If it’s a sudden surprise, try to extend for a short time. Seller will be responsible for Buyer’s expenses. The Seller as a consequence will likely not be able to close and the Buyer could terminate the deal.
If the Seller is “on their deathbed”, place the title in joint tenancy, so that the surviving joint tenant may complete the transaction on time. That should be the person who is appointed as their Estate Trustee under the Will, or the person appointed as their Attorney under a Power of Attorney. If no one is available, the lawyer could assume this role.
Brian Madigan LL.B., Broker