What Happens If the Seller Refuses to Close an Ontario Real Estate Deal?

If a seller refuses to close, your main court options are specific performance, which means asking the court to make the seller complete the sale, and damages. A court that can order specific performance may award damages in addition to, or instead of, specific performance. Which route fits depends on your agreement and the facts, so get legal advice early.

Starting a lawsuit that puts an interest in land in question is not notice to outsiders until the court issues a certificate of pending litigation and it is registered on title. A buyer suing a seller who refuses to close uses this tool to protect the claim. The court may discharge the certificate in several cases, including where you claim money instead of or as an alternative to the land, have no reasonable claim to the interest, do not prosecute the case with reasonable diligence, or can be adequately protected by other security.

On the deposit, a brokerage should release it after a failed deal only under a release or direction signed by all parties to the Agreement, or under a court direction. RECO's deposit insurance does not apply where buyer and seller simply cannot agree on who gets it. Keep all your correspondence and the signed agreement.