In a recent British Columbia case, buyers made an offer on a $1 million-plus condominium in downtown Vancouver. Their purchase depended on the sale of their current property. When they thought they had a firm sale and financing in place, they went unconditional on the new condo.
The sale of their existing home fell apart, the bank yanked their financing, and they couldn't close. There is more to the case, but for me as a lawyer (and I'm guessing for you as realtors), these are situations where a buyer says to us, "If I don't close, they can only take the deposit, right?".
Wrong!
Not only are the sellers owed the deposit, but they can also recover all costs they incurred, starting with the difference between the original sale price and a lower sale price to another buyer. The original buyers can be held to repay every cost or expense that can reasonably be attached to the original buyer's failure to close, which can be a long list!
Here's a list from that British Columbia case:
