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