What can I do if the seller refuses to close or backs out of our agreement?

If the seller has entered into a binding Agreement of Purchase and Sale (all conditions met or waived) and then refuses to close, you have legal remedies available. The primary remedy in Ontario for real estate transactions is specific performance — a court order requiring the seller to actually complete the sale and transfer the property to you. Courts have historically been willing to order specific performance for real estate because land is considered unique.

Alternatively, you may be entitled to sue for damages — the costs you incurred (legal fees, moving expenses, increased purchase price for a replacement property) resulting from the seller's failure to close. Which remedy is more appropriate depends on your circumstances and whether specific performance is achievable (for example, whether the seller has already sold to someone else).

If you encounter a seller threatening to or actually refusing to close, contact your lawyer immediately. Time is critical — your lawyer may be able to resolve the issue before closing day or take steps to preserve your legal position. Do not engage directly with the seller; communicate through your lawyer.