This is a question I am asked quite often while preparing an offer for my buyer clients. Most of the time it is the first time buyers who ask, however, quite often its the veteran home buyers who don’t completely understand how the deposit is handled and how entering into an Agreement of Purchase sale works. The main reason for this is that things keep changing. The Following article is very insightful and also demonstrates how time is not necessarily a reason to think all has been processed and forgotten.
Mark Weisleder is a GTA Real Estate lawyer and wrote the following article:
Court case shows a buyer must be careful before putting down a deposit on a home they’re not certain they want to buy.
In many situations, buyers default under a real estate agreement and then the seller re-sells for more money. The deposit is still sitting in the real estate brokerage’s trust account. I am often asked who will win the deposit if the case goes to court, the buyer or the seller?
As the attached case illustrates, in most cases, even if the seller re-sells the property for more money, and does not suffer any damages, the buyer who defaulted will still lose the deposit if the matter goes to court.
The lesson for any buyer is to be very serious every time an offer is made. It will be costly to try and change your mind later.
http://www.thestar.com/life/homes/2013/01/25/who_gets_deposit_when_house_deal_falls_apart.html
I would like to thank Mark for continuing to write great articles that provide insight into the Real Estate process and the industry itself.
About Mark Weisleder
Mark is a lawyer, author, instructor, Toronto Star columnist and keynote speaker for the real estate industry.
SCOTT ROY
RE/MAX Jazz Inc.
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Oshawa, Ontario
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