What Happens If the Seller Fails to Close in Ontario?

If your seller will not or cannot close, you generally have two routes: claim money damages, or ask a court to order the sale to go ahead. Damages are presumptively the difference between the contract price and the market value of the land on the closing date, so if the two are equal that day, there is no loss.

An order forcing the sale to close, called specific performance, is not granted as a matter of course, and you must show the property is unique and that damages would be inadequate. Unique does not mean one of a kind; it means qualities especially suitable for your use that cannot readily be duplicated, and a rising market can support this. Courts should be reluctant to order it for property bought solely as an investment.

If time is of the essence and neither side is ready on the agreed date, the agreement stays in effect, and either party can restore time of the essence by setting a new closing date and giving reasonable notice. What happens to your deposit and whether to register anything on title depend on your agreement and the facts, so get legal advice early.