What happens if the buyer doesn’t close in Ontario?
If a buyer fails to close on the agreed date, the seller may retain the deposit as damages and pursue additional losses through litigation — including carrying costs, price differences on a subsequent resale, and legal fees. In some cases, the seller may also seek specific performance. The seller should not re-list or re-sell the property without legal advice first, as doing so may affect their ability to claim certain damages.
Can I get my deposit back if the deal falls through?
It depends on why the deal fell through and who was at fault. If the buyer was unable to satisfy a financing condition in good faith, the deposit is typically returned. If the buyer simply refused to close without a legal basis, the seller is generally entitled to retain the deposit. If the seller failed to close, the buyer is entitled to the return of their deposit and potentially additional damages. We assess the specific circumstances of your transaction to advise on your entitlement.
Can I sue a seller for not disclosing a defect in Ontario?
Potentially yes, depending on the nature of the defect and what the seller knew. Ontario law does not require sellers to disclose all defects, but sellers cannot actively conceal latent defects — hidden defects that make the property dangerous or unfit for habitation. If a seller knew of a latent defect and failed to disclose it, or made a false statement about the property’s condition, you may have a claim in misrepresentation or fraudulent concealment. The strength of your claim depends on the facts — contact us to discuss your situation.
What is specific performance in a real estate dispute?
Specific performance is a court order requiring a party to complete a transaction as agreed. In Ontario, courts assess whether damages would be an adequate remedy before granting specific performance. It is most commonly sought by buyers when a seller refuses to close — particularly where the property has unique characteristics or has increased significantly in value. An application must be made promptly and a Certificate of Pending Litigation registered on title.
What is a Certificate of Pending Litigation and when do I need one?
A Certificate of Pending Litigation (CPL) is a document registered on title to a property that alerts the public to an existing or pending legal claim involving that property. When registered, it effectively prevents the owner from selling or mortgaging the property without dealing with the claim. A CPL should be considered immediately when a seller refuses to close or attempts to re-sell the property — without one, a third-party purchaser for value without notice may defeat your claim.
How long do I have to bring a real estate dispute claim in Ontario?
Under Ontario’s Limitations Act, 2002, the basic limitation period is two years from the date the claim was discovered or ought to have been discovered. Some claims — including certain Tarion warranty claims and claims under the Condominium Act — have their own specific timelines that may be shorter. Do not assume you have two years. Contact us as soon as a dispute arises to confirm the applicable limitation period for your specific claim.
Can I sue my real estate agent for negligence in Ontario?
Yes, in appropriate circumstances. Real estate agents owe a duty of care to their clients and can be held liable in negligence for failures that cause financial harm — including failure to disclose material facts, negligent pricing advice, failing to communicate offers, or acting in a conflict of interest. A successful negligence claim requires establishing that the agent owed a duty of care, breached that duty, and that the breach caused your loss. These claims can also be combined with a regulatory complaint before RECO or TRREB.
What are my rights as a new home buyer under Tarion in Ontario?
New home buyers in Ontario are protected by the Ontario New Home Warranties Plan Act, administered by Tarion. Protections include deposit insurance of up to $100,000 for freehold homes and up to $20,000 per unit for condominiums, delayed closing compensation where the builder fails to close on time, and warranty coverage for construction defects at one year, two years, and seven years after possession. If a builder fails to honour these obligations, Tarion provides a claims process — and in some cases, litigation may be necessary to enforce your rights.