My sale fell through overnight and my purchase is still supposed to close today — what happens now?

Your obligation to complete your purchase is a separate contract from your sale, so the collapse of your sale does not automatically excuse you from closing on your purchase today. Ontario courts treat each Agreement of Purchase and Sale as its own binding contract, and the person you are buying from is generally entitled to expect you to complete regardless of what happened with your own sale, unless your purchase agreement specifically made it conditional on your sale closing.

Contact your lawyer immediately, since the options depend heavily on timing and how much of the purchase price now has a funding gap. Possibilities include short-term bridge financing to cover the missing funds until your sale re-closes with a new buyer, negotiating a brief delay with the seller if they are willing, or, in a worst case, being in default on the purchase with the financial consequences that follow. None of these are guaranteed to be available on short notice, which is exactly why speed matters here. Your lawyer can also assess whether your purchase agreement gives you any protection tied to your sale falling through.