Understanding Your Legal Obligation During The Offer Process
There are two types of offers; a firm offer and a conditional offer. This applies to both new home and resale home purchases.
Buyers have one additional level of protection when buying a brand new condominium in Ontario as you have a 10 day cooling off period to change your mind and cancel your offer with no penalty.
In Ontario buyers can have an offer accepted " upon acceptance" which means that the deposit must be delivered within 24 hours. If the buyer does not deliver the deposit within that time period, the deal is technically void and the buyer could be sued.
Legal opinions vary as to what you can expect to suit for. If you quickly resell your home for the same price or more to buyer #2, then there is typically liitle no basis for a suit. If however you resell your home to buyer #2 for less than the original sold price, then the seller can sue for the difference and any other costs incurred.
If a buyer defaulted on the closing date, then they are technically in default and the seller can sue for any costs incurred such as moving, storage and bridge financing.
It is always recommended to use and consult with a qualified real estate lawyer when you are planning to buy or sell any real estate.