The Seller will sue the defaulting Buyer both on the sale and on the purchase.
Why should the Buyer get stuck with damages on the second deal? Wasn’t that the Seller’s own business?
The Buyer has two remedies to reduce some liability and exposure here:
- only proceed with an Offer in one name, and
- incorporate a company to submit an Offer.
In both cases, there is an overall reduction in the risk. Would an agent be negligent if they failed to take advantage of this simple opportunity.
Brian Madigan LL.B., Broker
Comments 2
The seller should have the right to sue the buyer for failing to close the transaction.
Ideal the buyer should be purchasing the property in a new corporation to lower the risk.
There are many issues today similar to this case, but I think the judge in this case says it’s a bit more flexible for the buyers. to lower the risk, at least for the seller, this offer should be with a nonrefundable deposit to protect the seller therefore, in the situation, the buyer is not going to easily walk away.
Author
OREA contract has Buyers paying twice.
This seems to work for residential transaction, since no one ever appears to raise it as an issue.
It doesn’t apply in commercial transaction since a “major player” would never sign anything along those lines
Also, different rules in other jurisdictions.