Expert: Derek Hamilton - 6/27/2010

Question
Hi Derek,

I am closing the sale of my house in one week.We were told by our real estate agent that the buyer lost his job and is breaking the purchase agreement as the bank pulled his funding.The buyer informed the bank immediately that his employer is laying him off for the summer but will rehire him in the fall.Unfortunately, they won't give him this in writing and the bank will not help him.Since, he provided us with all conditions and met these, which included funding from the bank, at the time of the purchase agreement.How is this our problem now?Is he not obligated by the contract and how can he walk away.Is this not his responsibility and his insurance problem?
We are tied with our financing on purchasing our new home and we could potentially loose our new home.A lot of money is tied up that we will potentially loose and will be out of, that the $1000 deposit will not cover.Have you come across a situation like this and can you give us advice. Thank you for your help.

Answer
Hi Beatrice,
Talk to your Real Estate Lawyer A.S.A.P. You have a firm and binding contract but you can't get blood from a stone. You may want to re-list your home for sale again and sue for damages? Did you receive a healthy deposit with the offer to Purchase your home? 5% of the Selling price is the normal in the Toronto Real Estate Board. In a nut shell, this is the Buyer's problem and your Lawyer will most likely sue for damages! Real Estate Lawyer's have seen these things happen and know what to do.
Good luck!
Derek