Generally, buyers who are unable to close the purchase of real estate risk losing their deposits, even if the seller suffers no loss. However, there are instances where a seller would be required to return the buyer's deposit regardless of several factors.
You signed the Agreement of Purchase and Sale (the “APS”) to purchase a new development property, you paid the deposit, but the seller has since breached their own obligations under the APS. You are now having second thoughts about moving forward with the purchase of that new home. Can you get out of the APS?
Douglas and Shila Gamoff listed their home for sale for $2,000,000. They had 18 showings leading to a bidding war. The prospect of competing against multiple offers prompted Yixing Hu and David Lea to make an offer to buy the house for $2,250,000. Their offer was accepted. But sometime after signing the agreement of purchase and sale, the purchasers had buyers’ remorse. David Lea pleaded with the vendors to let him out of the deal. The buyers felt they overpaid.
So, legally speaking, when can a buyer rescind their agreement to purchase a property? When can the seller keep the deposit?
In MacDonald v. Chicago Title Insurance Company of Canada, 2015 ONCA 842 the Court of Appeal has recently considered the scope of coverage which should be provided to a party purchasing title insurance.