What can a seller do if the buyer simply doesn't show up or send funds on closing day?
A buyer who fails to complete without a valid excuse is generally in breach of the Agreement of Purchase and Sale, and the seller has several potential remedies, though which one makes sense depends on the seller's circumstances and what they actually want out of the situation. One option is treating the deal as at an end and pursuing damages for losses caused by the buyer's failure to close, such as the difference if the property later sells for a lower price, along with carrying costs incurred in the meantime.
Depending on the terms of the agreement and how the deposit was structured, a seller may also be entitled to retain deposit funds already received as part of addressing their losses, though disputes over deposits sometimes end up before a court if the buyer contests it. In some situations, a seller who genuinely wants the sale to proceed rather than simply compensation may pursue specific performance to compel completion, though this is less commonly the seller's preferred remedy than pursuing damages and re-selling the property. A seller facing this should get their lawyer's advice quickly rather than assuming any one outcome is automatic.
Key takeaways
- A buyer's no-show without valid excuse is generally treated as a breach of contract.
- Sellers may pursue damages for losses caused by the failed completion, including a lower resale price.
- Deposit retention is a possible remedy but can be disputed and end up before a court.
- Specific performance is available in theory but less commonly a seller's chosen remedy.