In Ontario, the law generally takes a firm stance against reneging on a signed agreement of purchase and sale. Once an agreement of purchase and sale has been signed by both the buyer and seller, it is considered a legally binding contract.
If a party to the contract fails to meet their obligations under the contract, such as by refusing to complete the sale, the other party may seek legal remedies. The remedies available to the non-breaching party will depend on the specific circumstances of the case and the terms of the agreement.
In most cases, the non-breaching party can sue for damages, which may include any costs incurred as a result of the breach, such as legal fees, interest, and other costs associated with re-listing and reselling the property. In some cases, the non-breaching party may also be entitled to specific performance, which requires the breaching party to fulfill their obligations under the contract.
It’s important to note that the law regarding agreements of purchase and sale can be complex, and it’s recommended that you consult with a lawyer if you are considering reneging on a signed agreement of purchase and sale, or if you have been affected by someone else’s breach of such an agreement. If you would like to speak to our real estate and litigation lawyers please contact us at firstname.lastname@example.org or 1-877-892-7778.