The Failed Deposit (Not Paid) – Remedies

What happens if the deposit is not paid?

The Listing Agent inquired since he received the following message:

“My clients have decided not to deliver the deposit cheque because the house is suddenly in an inconvenient part of town for them.” (Buyer’s  agent).

There is a clause conditional upon Financing.

So, what do you do if you are the Listing Agent?

Here’s the protocol:

  1. Wait until the conditional period expires.
  2. Terminate the deal,
  3. don’t sign a release,
  4. put it back on MLS,
  5. sell to a second Buyer for more,
  6. sue for the deposit and keep that too (as long as you have evidence of bad faith).

That would certainly have the Buyers enter into a discussion with their own agent.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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