I have a problem with a real estate closing in Ontario — what should I do?
Where a party cannot or will not close, the options are an extension, closing under protest with an abatement, or terminating and suing for damages or specific performance — and the deposit is usually the first battleground.
A failed closing in Ontario is usually one of three problems: the buyer cannot fund, the seller cannot deliver clear title or vacant possession, or a requisition raises a defect neither side anticipated. The agreement of purchase and sale governs, so the first step is always the contract — the requisition date, the tender obligations and any conditions.
The practical options are to negotiate an extension or abatement, to tender and close under protest while preserving a damages claim, or to treat the agreement as at an end. A buyer who wants the property itself may seek specific performance, but that requires showing the property is uniquely suited to the buyer's needs.
Deposit disputes follow their own logic and often require a court order to release funds. Tendering properly on the closing date is what preserves nearly every remedy that follows.
Source: Ontario agreement of purchase and sale · Land Registration Reform Act
This work is handled by Vyshnavie Manmatharajah (Real estate). Read more about real estate at VK Law Group, or send us the facts and we will tell you where you stand.
This content is general information about Ontario and Canadian law only. It is not legal advice, it is not reviewed, vetted or verified for your situation, and it should be treated like any other general information available on the internet. It cannot be relied upon or presented to a court, tribunal or opposing party as legal advice. Reading it creates no solicitor-client relationship — that arises only under a signed written retainer with fees paid. Only a properly retained lawyer can advise you. If you are facing a legal issue, or a deadline may be running, we strongly recommend you retain a lawyer rather than proceed on your own.