With home prices declining across Toronto and surrounding areas, many buyers are feeling remorse and are still stuck trying to sell their current home.
As a buyer, you are legally obligated to follow through with the purchase you agreed to. Your legal obligation goes far beyond losing the deposit on the new property.
What are your legal obligations?
To keep things simple, as a buyer, you are responsible for any losses and expenses incurred by the seller including the drop in value between your purchase price, and the eventual sale to someone else. These costs can run into hundreds of thousands of dollars as there is a good chance the seller was not able to close on their purchase either.
If you can close, you should, even if the value of the purchased property has fallen. In a case where you are not able to close, due to not having sufficient funds, it would be a good idea to seek legal advice. A mortgage broker can also advise you about your options, including short-term financing, to possibly close the deal.
Below is a link to a short video by a local Toronto realtor which discusses this topic. If you need info on financing options, give me a call.
You must be logged in to post a comment.