Hwang Soo Lee of Surrey, B.C., ended up having to compensate his first buyer for behaviour described by a judge as “high-handed and outrageous.” The lesson is that sellers who think they can change their mind and get out of a deal, should a better offer arise, must beware of the consequences. Click here to view the full article.
In Canada, it’s rare that a deal falls apart once the Purchase and Sale Agreement becomes firm and binding – we have one of the best real estate systems in the world in that respect. When a deal does fall apart, it is usually the buyer that wants out, perhaps because his financial situation has changed (e.g., he lost his job), or perhaps he just got cold feet.
It’s much more rare that a seller wants to back out, but this cautionary tale indicates that the consequences of doing so can be severe, especially when the reason for backing out is to get a better deal!