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Legal Ease
Legal Ease, Lawyer
Category: Canada Law
Satisfied Customers: 96424
Experience:  Lawyer
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I purchased a new home that will close in Jan 2017 we

Customer Question

I purchased a new home that will close in Jan 2017 we purchased the home in Dec 2014. I have encountered some unfortunate personal issues and would like to cancel the contract. I have a 50k deposit on the home and obviously want to be sure I can obtain a refund. How should I proceed?
Submitted: 10 months ago.
Category: Canada Law
Expert:  Legal Ease replied 10 months ago.

Unfortunately, you may actually be stuck. This is not just about getting back the deposit. You have signed a binding contract and you cannot get out of it because of any reason even a very valid one such as a change in your personal situation.

The builder can sue you to compel you to comply with the terms of the contract and continue with the contract.

At the same time, if you tell the builder that you are not going to be able to complete the contract the builder has to take all reasonable steps possible to try and find a new purchaser. If the builder does find a new purchaser then you will be off the hook. But, if the builder finds a purchaser who pays a lower price you will be a liable for the difference.

It may make the most sense to try to come to a deal with the builder to essentially pay him to let you out of the contract. I am sorry this happened to you and I'm very sorry this is not the answer you were hoping for but to simply tell you what you want to hear will not help you of course.

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