A builder sued a buyer for $218,804.46 after a pre-construction condominium deal collapsed. The buyer had walked away three days before closing, unable to obtain financing. The builder had already resold the unit at a loss. It had a signed acknowledgement from the buyer confirming receipt of all required documents. Most people would assume this was an open-and-shut case, and the buyer had forfeited their deposit.

The buyer got his $121,098.00 deposit back. The builder recovered nothing.

In DiCenzo (Linden Park) Holdings Inc. v. Sadeghyar, 2026 ONSC 1566, the Ontario Superior Court found that the Agreement of Purchase and Sale was never binding on the buyer in the first place. The builder had failed to establish, on a balance of probabilities, that it had delivered one document it was required by statute to provide. That finding disposed of everything: the deposit claim, the damages claim, and the carrying costs. The builder’s application was dismissed on March 16, 2026. The buyer’s cross-application was granted in full.

For Ontario buyers facing a pre-construction closing they cannot fund, this decision is worth understanding carefully.