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Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 98517
Experience:  Lawyer
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This may be something only a notary can answer but I have

Customer Question

This may be something only a notary can answer but I have gotten into a real estate deal that I may need to pull out of. I was ready to use the inspection as a reason last Friday and my partner offered to loan me some extra money as a cushion. On that understanding, I signed off on the inspection. It's questionable now whether this loan will materialize. There is a clause in the Promise to Purchase (7.6) about damages that refers to the buyer not completing the deal and having to pay the seller's agent "damages equal to the remuneration that the seller would have had to pay". Does this refer to the commission? Or something else?
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

Yes . That is referring to commission.

Customer: replied 1 year ago.
OK, so I would pay the 5 or 6 % on the purchase price and I would be off the hook, if necessary?
Customer: replied 1 year ago.
Just wanting to make sure, because this is Quebec and the civil laws are different. I need to know the lay of the land before I start anything. Thanks.
Expert:  Debra replied 1 year ago.

No. That is not correct. You would pay that commission above the damages you have to pay. The damages are that you would owe the seller the full contract price. Went you have a binding agreement you can't change your mind and walk away.

At the same time the seller has a duty to mitigate damages had to try to sell the place again. If that happens then you will be off the hook.

Customer: replied 1 year ago.
I can't call - I'm not in a space where I can talk. So basically, if I'm getting this correctly, I will be liable for the commission on the sale if it doesn't go through, PLUS the full agreed price of the property unless the vendor gets another offer and closes on it - in which case, I would be liable only for the commission on my original purchase price. This was my concern last Friday but I got talked into something - my fault entirely, but I was very sick at the time with a respiratory infection (doesn't make any difference, I know).
Expert:  Debra replied 1 year ago.

I'm actually not permitted to talk to you on the phone in any event. The rules of my law society don't allow me to speak to you because you are not my client.

You will not be liable for the commission if the seller finds another buyer. But if the seller sells the house for less money then you will be liable for the difference.

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