What Happens to the Real Estate Deal if the Seller Dies Before Closing in Ontario?
The answer depends on the wording of the Agreement of Purchase and Sale and the circumstances, so do not assume the deal is cancelled or that it must close on the original date. A death can raise practical questions about who can act for the seller, and the answer depends on the facts. A lawyer can confirm what applies to your agreement.
The transfer itself is generally signed for completeness by two different lawyers, one acting for the transferor and one for the transferee. Some transfers, such as transfers within a family or between related parties, may be completed by one lawyer acting for both sides.
If the deal fails, the brokerage should release the deposit only under a release or direction signed by all parties to the Agreement, or under a court direction. If a buyer sues because the seller side will not close, a certificate of pending litigation registered on title is the tool used to protect the claim, and a court that can order specific performance may award damages in addition to, or instead of, specific performance. Buyers and families should get advice early.
Key takeaways
- The outcome depends on the wording of the Agreement of Purchase and Sale and the circumstances, so do not assume the deal is cancelled.
- The transfer is generally signed for completeness by two different lawyers, one acting for the transferor and one for the transferee.
- If a deal fails, the brokerage should release the deposit only under a release or direction signed by all parties to the Agreement, or under a court direction.
- A buyer suing over a refusal to close uses a certificate of pending litigation registered on title to protect the claim.