I am a lawyer in Ontario.
I am sorry this happened to you.
Of course you didn't have to give the extension and there is no reason, none, that you should not say you are requiring them to close on time or you will sue them. There is no legal basis for anyone to ask for a reduction after an offer has been accepted. That is a binding contract. In fact when the offer is accepted they own the house. That is when beneficial ownership changes hands.
You can sue them if they do not close and they know it.
I suggest you contact your broker and ask your broker and ask for help.
This buyer is fully aware of the law and what they are doing. They know no one can ask for this and they are an expert.
At the same time this has nothing to do with the RCMP or fraud. You will have to sue them if they don't close.
And being honest it does not make sense to hesitate to hire a lawyer when so much is at stake and when hiring the lawyer to send a letter or two is likely all it will take to force the closing. This is a civil matter and the only recourse would be to the courts but threatening a lawsuit is likely all you need to do.
Do you see what I mean?
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