Legal options if buyer breaks APS contract

[Andrew Tam]

Hi everyone,

I'm selling my first investment property (Ontario) via an agent. I recently had an offer from a potential buyer and we signed the APS. The buyer never made the deposit within 1 business day and wants to back out now. Would that be a breach of the contract already?

There are also 2 clauses to be waived upon satisfactory inspection and contacting regulatory authorities for due diligence. The buyer wants to back out now and has not provided justification within the confines of the clauses.

I'm curious to know what my options are. Is legal action worth it?

I'm learning lots from reading the forum. I didn't expect this to happen on my first property.

Any advice or suggestions is greatly appreciated.

Thanks in advance.

[Chris Baxter]

Have a look at the clause for 'satisfactory inspection'; it likely contains language similar to 'at the buyer's sole discretion'. Buyers can (and will) walk quite easily with these standard escape clauses. If your property is worth selling, why waste time trying to take legal action? Focus on getting the sale. Going forward, ensure that a sizable deposit (earnest money) is paid immediately once terms are agreed to so that you eliminate buyers that want to tie up your property for extended due diligence without consequence.