{"id":8240,"date":"2026-10-04T00:03:49","date_gmt":"2026-10-04T00:03:49","guid":{"rendered":"https:\/\/liulawyers.com\/?p=8240"},"modified":"2026-10-04T00:15:24","modified_gmt":"2026-10-04T00:15:24","slug":"%e4%b9%b0%e5%ae%b6%e4%b8%8d%e4%ba%a4%e6%8e%a5%ef%bc%8c%e5%8d%96%e5%ae%b6%e8%bd%ac%e6%89%8b%e5%b0%91%e5%8d%9620%e4%b8%87%ef%bc%8c%e8%bf%9920%e4%b8%87%e8%b0%81%e6%9d%a5%e8%b5%94%ef%bc%9f","status":"publish","type":"post","link":"https:\/\/liulawyers.com\/en_ca\/%e4%b9%b0%e5%ae%b6%e4%b8%8d%e4%ba%a4%e6%8e%a5%ef%bc%8c%e5%8d%96%e5%ae%b6%e8%bd%ac%e6%89%8b%e5%b0%91%e5%8d%9620%e4%b8%87%ef%bc%8c%e8%bf%9920%e4%b8%87%e8%b0%81%e6%9d%a5%e8%b5%94%ef%bc%9f\/","title":{"rendered":"If the buyer fails to complete the transaction, the seller ends up selling the property for 200,000 less. Who will compensate for this 200,000?"},"content":{"rendered":"
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When selling a home in Ontario, one of the situations sellers dread most is when, after signing the Agreement of Purchase and Sale and with Closing Day just around the corner, the buyer suddenly says:There was a problem with the loan, so the house couldn't be handed over.<\/strong>

Some buyers might think, \u201cI\u2019ll just forfeit my deposit, and the seller can just sell the house again.\u201d But if market conditions have changed by the time the property is put back on the market, things may not be nearly that simple.

Here's a simple example: A seller enters into a contract with a buyer to 1.5 million yuan<\/strong>A house was sold, and the buyer paid 75,000 yuan deposit<\/strong>. On the closing date, the buyer was unable to complete the transaction due to insufficient financing. The seller had no choice but to relist the property. By then, the market had already declined, and after some time, the house was ultimately sold for only 1.3 million yuan<\/strong>The deal was closed. The difference between the two figures was 200,000 yuan<\/strong>. So, does that mean the seller has to cover the 200,000 yuan on their own?

Not necessarily.<\/strong>If the original buyer has no legal grounds to terminate the contract and the transaction cannot be completed due to the buyer\u2019s breach of contract, the seller may, in accordance with relevant legal principles, seek compensation from the buyer for the resulting losses, which may include the difference in price resulting from the resale of the property.

The deposit does not necessarily represent the upper limit of the buyer\u2019s liability; this is a very common misconception in real estate transactions. The fact that the buyer has paid a 75,000 yuan deposit does not automatically mean, \u201cMy maximum loss is 75,000 yuan.\u201d If the seller\u2019s actual losses exceed the amount of the deposit, the seller may seek further compensation from the buyer. Taking the example above, even if the seller is able to legally recover the 75,000 yuan deposit, this does not mean that the seller must necessarily bear the remaining losses. The specific amount that can be recovered requires an analysis based on the contract terms, the resale price, market conditions, and the actual losses suffered by the seller. The seller\u2019s losses may extend beyond the 200,000 yuan difference in the property price.

After a buyer defaults, the seller typically needs to relist the property, find a new buyer, and complete the transaction again. During this process, other losses and expenses may also arise, such as additional mortgage interest, property taxes, management fees, insurance premiums, maintenance costs, and expenses incurred in reselling the property. Determining which losses can ultimately be recovered from the defaulting buyer is not simply a matter of adding up all the costs; it requires an assessment based on the specific facts, evidence, and relevant legal principles.

Sellers cannot simply sit idly by and wait for their losses to grow. A buyer\u2019s breach of contract does not mean that sellers can allow their losses to mount indefinitely and then demand that the original buyer bear the full burden. Sellers are generally required to take reasonable steps to mitigate their losses\u2014a concept often referred to in legal terms as mitigation of damages<\/strong>. For example, after a failed transaction, the seller may need to resell the property under reasonable circumstances. The timing of the resale, the listing method, the sale price, and the state of the real estate market at that time may all become factors to consider when calculating losses in the future. Therefore, sellers should also exercise caution regarding how to handle the property if the buyer fails to complete the transaction.

What should a seller do if a buyer requests an extension? In actual transactions, when buyers realize they cannot complete the handover on time, they often ask:
\u201cCan you give me another week?\u201d<\/strong>
\u201cThe bank loan will be approved very soon.\u201d<\/strong>
\u201cI'm willing to cover the costs associated with the delay.\u201d<\/strong>

Whether the seller agrees to this depends on the specific circumstances. If the seller is willing to grant the buyer an extension, they can work with a lawyer to clearly document the new closing date, fees for the extension period, interest, additional legal fees, and other terms. If the seller does not agree to the extension, the next steps should be determined based on the contract and the actual situation, rather than simply saying, \u201cThen I won\u2019t sell it to you,\u201d verbally.

For both buyers and sellers, Closing Day is not a date that can be casually disregarded. Once a real estate purchase contract becomes binding, both the buyer and the seller must take their contractual obligations seriously. For buyers,The consequences of failing to complete the handover could go far beyond the loss of the deposit.<\/strong>For sellers, if a buyer defaults, they should promptly take appropriate measures, preserve relevant evidence, and reasonably address issues related to reselling the item and compensating for losses.A house priced at 1.5 million was ultimately sold for only 1.3 million due to the buyer\u2019s breach of contract; however, that 200,000 won\u2019t simply disappear. Who will ultimately bear the cost and how much can be recovered will depend on the contract, the circumstances of the breach, the resale process, and the actual losses incurred.<\/strong>

If a problem suddenly arises just before the closing of a real estate transaction, the sooner you involve a lawyer, the better equipped you\u2019ll typically be to understand your rights and determine how to proceed.

This article is provided for general legal information purposes only and does not constitute legal advice regarding a specific case. The contractual terms, market conditions, and actual losses associated with each real estate transaction may vary; legal advice should be sought based on the specific circumstances.<\/em><\/p>\n\t\t\n<\/div>\n\t\t<\/div>","protected":false},"excerpt":{"rendered":"

What should a seller do if a homebuyer in Ontario refuses or is unable to close the sale, and the seller has to relist the property for 200,000 yuan less? Learn about common real estate legal issues, such as buyer default, earnest money, the price difference upon resale, compensation for losses, and the seller\u2019s obligation to mitigate losses.<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8240","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n\u4e70\u5bb6\u4e0d\u4ea4\u63a5\uff0c\u5356\u5bb6\u8f6c\u624b\u5c11\u535620\u4e07\uff0c\u8fd920\u4e07\u8c01\u6765\u8d54\uff1f - \u5218\u5b66\u5175\u5f8b\u5e08\u697c<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/liulawyers.com\/en_ca\/\u4e70\u5bb6\u4e0d\u4ea4\u63a5\uff0c\u5356\u5bb6\u8f6c\u624b\u5c11\u535620\u4e07\uff0c\u8fd920\u4e07\u8c01\u6765\u8d54\uff1f\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u4e70\u5bb6\u4e0d\u4ea4\u63a5\uff0c\u5356\u5bb6\u8f6c\u624b\u5c11\u535620\u4e07\uff0c\u8fd920\u4e07\u8c01\u6765\u8d54\uff1f - 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