For buyers, the bottom line is that contractual deadlines are not to be taken lightly. If you intend to complete a deal, you must ensure that your funding is lined up in plenty of time and that all your other obligations under the APS — even minor ones – have been fulfilled as agreed.
Real Estate Disputes
$350K deposit returned to purchaser who terminated commercial property deal
Any buyer who terminates a binding Agreement of Purchase and Sale (APS) should expect the vendor to move for the forfeiture of their deposit immediately. In a depressed market, an innocent seller may even be entitled to further damages to make up the difference between the sale price agreed in the failed deal and any lower bid they ultimately accept.
However, purchasers who successfully shift the blame for the collapsed deal to the vendor may be able to recover their deposit, even if they were the ones to call it off.
Risks and Rewards by Notice of Application
Rule 14.05(3) of Ontario’s Rules of Civil Procedure sets out the circumstances when a matter can proceed by way of application, allowing the judge to decide a discrete issue or potentially even the entire case based entirely on a paper record and oral arguments, without hearing from any live witnesses.
In the appropriate case, this allows the parties to circumvent some of the worst aspects of litigation: the costs and scheduling delays associated with discoveries and a full trial.
However, the process is not without risks. Judges retain the ability to convert an application into an action, which means that you could end up right back where you started if the court concludes that further evidence is required.
Judge adds buyer’s realtor to lawsuit over aborted real estate deal
Plaintiffs typically feel they have a good idea of how they have been wronged by a defendant when they file a statement of claim with the court. However, as time passes and more details emerge, key aspects of the originating document may no longer line up with the known facts. Luckily, Ontario’s Rules of Civil Procedure recognize that possibility, allowing parties — in the right circumstances — to amend the pleadings to match their evolving understanding of the case.
Accommodating judge gives disgruntled homeowner one last chance to sue city
Judges will do all they can to prevent a lawsuit from falling at the first hurdle, but their patience has limits. When launching their legal cases, many non-lawyers picture the process ending in vindication following their day in court. In reality, only a tiny...
Court orders sale of co-owned home, leaves details for later
Although recent interest rate hikes have taken the edge off Toronto’s notoriously wild housing market, prices are still high enough that co-ownership with family or friends remains an increasingly conventional choice for prospective buyers who see no other route onto the property ladder. When co-owners fall out over a house, emotions run high and it’s often hard for them to agree on anything again. And while Ontario’s Partition Act provides a mechanism for the division and sale of a property, litigants (and their counsel) are often wary of pushing for a court-ordered sale until they have worked out some of the other details in dispute — such as the list price, the listing agent, or liability for outstanding property taxes and other bills associated with the home.
Buyers beware as housing market cools
Cold feet can cost buyers dearly when the housing market takes a turn for the worse. Higher interest rates and economic volatility are a recipe for falling real estate prices, and difficult market conditions are already having an effect, with the Canadian Real Estate...
Commercial Property Deal Collapses and Costs Vendor
Commercial property deal collapse costs vendor $11 million The prospect of compensation for lost profits means it’s not just buyers who must beware when a commercial real estate deal collapses — sellers found responsible for the failure to close could find...
Co-ownership Agreements and Litigation
Entering into a legal agreement with your co-owner(s) to put everything in writing is strongly encouraged. It will assist with resolving disputes with the property later. Even if you don’t have an agreement in writing, a lawyer experienced in handling property disputes can negotiate a settlement without having to litigate.
The Pros and Cons of Asset Purchases vs Share Purchases
A share purchase involves the purchase of shares of a company effectively transferring the company’s assets and liabilities to the purchaser. An asset purchase, on the other hand, involves the purchaser buying some (or all) of a company’s assets. Oftentimes, the purchaser may prefer an asset purchase and the vendor may prefer a share purchase; this preference, however, will vary depending on a variety of factors.