What can I do if a buyer backs out of a firm deal on my Ontario home?

Once conditions are waived and the deal is firm, the buyer is legally obligated to complete the purchase. If they back out without a valid legal reason, they are in breach of contract and you have several potential remedies under Ontario law.

First, you are generally entitled to keep the deposit as partial compensation. Whether the deposit alone covers your losses depends on the amount and your actual damages. If the deposit is not enough — for example, you relist and sell for less — you can pursue the buyer for the difference plus carrying costs (mortgage, utilities, taxes) incurred while the property sat unsold.

Alternatively, you could seek specific performance — a court order forcing the buyer to complete the purchase — though courts grant this selectively. The more common path is keeping the deposit and suing for any shortfall. Document your losses carefully from the moment the buyer defaults. Get legal advice immediately; the steps you take in the first days after a buyer's default can significantly affect your ability to recover.