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Legal Ease
Legal Ease, Lawyer
Category: Canada Law
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Experience:  Lawyer
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House was sold with an August 1, 2013 possession date. Buyer

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House was sold with an August 1, 2013 possession date. Buyer is a home builder who clearly stated his intention to knock down the house immediately. Sale included architect's drawings for new home build that we had already paid for. The buyer requested that he be able to use the development permit that we had previously pulled from the city. The buyer put his company sign on our front yard prior to possession - at his insistence as part of deal.
In the major flooding that just occurred here in Calgary, Alberta our home was flooded in the basement and right up to the countertops on the main level of the bungalow. Everything has been ripped out and ruined. The house is currently unlivable. The buyer has backed out of the deal to buy even though he never intended to live in the house.
Question: If we fix up the house and replace the drywall, etc. prior to the possession date, I think the buyer will have no grounds to back out of this deal - is that correct?
Question: If we allow him to walk away, do we still get to keep his deposit on the grounds that we could have sold it to another party with a possession date that was prior to this flood?
Submitted: 1 year ago.
Category: Canada Law
Expert:  Legal Ease replied 1 year ago.
Thank you for your question.

Before I begin I want to explain a bit about how the site works.

It may be that I will find that I need to gather further information from you. As well, it's quite possible that you may feel the need to ask me additional questions for further clarification.Please do not worry that you will be charged additionally if I ask you questions or if you need to ask me questions. That is not at all how the site works.

As well, please understand that as a careful lawyer I will always give you an honest answer even if the answer is sometimes not what you were hoping for.

Finally, as we go through the process please do not feel rushed if I ask you a question. You are always free to take your time to gather more information before you post back. As well, please understand that even after you rate me the post will not lock and you could always come back for further clarification if you think of something a bit later on down the road.

I suggest that you have your real estate lawyer send the buyer a letter indicating that you will not agree for the buyer to terminate the contract.

The lawyer can say that even though they made it clear this was going to be a tear down you will place the home in the position it would have been in had this not happened if that's what the buyer wants but that you are intending to close and will be suing for damages otherwise.

Let me know if you need any further clarification.
Legal Ease, Lawyer
Category: Canada Law
Satisfied Customers: 85245
Experience: Lawyer
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