# Not Closing



## abroad (Feb 26, 2013)

I'm new in Canada, so I have some questions.
What happens if a deal does not close (closes later), you still have to give a certified cheque?
If you do have to give the cheque who gets the interest of the money? It is in the trust funds of the lawyer, can seller or buyer claim the interest.
Since seller receives the money on a later date and buyer receive the property on a later date. Or is the interest for the lawyer.


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## MoreMiles (Apr 20, 2011)

Welcome to Canada.

The lawyers do not get involved until all the conditions are removed. The deal may still fall apart because of inspection or financing issues. Therefore, the vendor broker is holding the deposit. If a deal breaks, you need to sign a waiver, the money will be returned by the brokerage firm company cheque.

Technically, a sales agreement is legally binding. The other side can sue for damages if one side backs out. So if the vendor changes his mind, you can sue for the price difference for a comparable house, once you find one later.

Regarding the interest rate on deposit, it is usually specified as a separate addendum / schedule in the offer reply. Most big brokerage firms (ie, ReMax, Century, etc) have similar rate and policies... so you don't have to worry about it. It is almost non-existent with today's rate anyway.


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## Rusty O'Toole (Feb 1, 2012)

If you have a deal with all conditions satisfied you have a binding contract. You or your lawyer must be ready to close on the day agreed.

You will have to consult your lawyer if there is some difficulty. I had a deal once where the seller's lawyer did not have the deed ready on the closing day. The deal closed anyway and the deed was registered a few days later.


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## abroad (Feb 26, 2013)

Rusty O'Toole said:


> If you have a deal with all conditions satisfied you have a binding contract. You or your lawyer must be ready to close on the day agreed.
> 
> You will have to consult your lawyer if there is some difficulty. I had a deal once where the seller's lawyer did not have the deed ready on the closing day. The deal closed anyway and the deed was registered a few days later.


We are ready to close the deal.
But we found some issues on the property, but the seller refuses to compromise.

the money is on my bank account and I recieve the interest (little more than 1%). I assume the lawyer (who I give a certified check) won't give me the same interest rate as the bank does.

If I was right on the issueses that I have with the seller, does he have to compensate.
We also have to pay rent for a house which we would have left on closing day, does he have to pay this to?

Is there an other to confirm that I have the money ready then by certified check. So that is stays in our account and we receive the interest? For example bank confirms that the money is there and keeps it there till the actual closing day?


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## Rusty O'Toole (Feb 1, 2012)

A lot depends what the "issues" are. If you have a firm deal, with no conditions, and accepted the property issues and all, you don't have the right to refuse to close, unless the seller or his agent lied or concealed some important defects.

This is where your lawyer comes in. He will advise you what your position is, and what ought to be done.


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## NotMe (Jan 10, 2011)

Rusty O'Toole said:


> A lot depends what the "issues" are. If you have a firm deal, with no conditions, and accepted the property issues and all, you don't have the right to refuse to close, unless the seller or his agent lied or concealed some important defects.
> 
> This is where your lawyer comes in. He will advise you what your position is, and what ought to be done.


+1 I would suggest you contact your real estate lawyer immediately for a legal position on what your options are. I'd also suggest you cease being concerned with the 1% interest and be more concerned with possibly being sued by the seller. Even on an offer with conditions, ie a satisfactory home inspection, there can be legal questions of what a reasonable person would consider satisfactory - it's not a get out of jail no questions asked condition.


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## kcowan (Jul 1, 2010)

Usually you include earnest money (a cheque) with the offer. This cheque is held by the seller's broker. If the conditions of the offer are all met by closing day, then the money is held by the broker. Money in your bank account does not count. If the home inspection revealed serious problems, then you have the right to walk and get your earnest money back. Make sure that these concerns are in writing or you might be liable.


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## abroad (Feb 26, 2013)

Thanks for the reply's we had.

We are sure that we were right in our issues, we asked a second lawyer for his opinion and he confirmed it.
We'll see where this ends.


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## stardancer (Apr 26, 2009)

A trust account in which a lawyer holds $$ for clients earns no interest for the lawyer or the client. Not sure about escrow accounts for realtors, but probably is the same.


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## abroad (Feb 26, 2013)

stardancer said:


> A trust account in which a lawyer holds $$ for clients earns no interest for the lawyer or the client. Not sure about escrow accounts for realtors, but probably is the same.


The money is still my account, so the interest will be put on my account.

Our lawyer did send their lawyer a fax that we where willing to close if they would compromise.


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## abroad (Feb 26, 2013)

Hello again

The deal did not close on the date we agreed.
It's gone close more than a month later.

We were right in our issues, to solve the issues is gone take them two months.
How far can you go to compensate costs and lake of income (from the property)


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## MoreMiles (Apr 20, 2011)

abroad said:


> The money is still my account, so the interest will be put on my account.
> 
> Our lawyer did send their lawyer a fax that we where *willing to close if they would compromise*.
> 
> ...


I don't think you really understand the Canadian RE system. It's too bad that your lawyer did not explain to you.

If you have a binding contract, you cannot go back to ask for a price reduction, which you stated as "compromise". If there are still conditions like home inspection, you only have 3 choices. 1. To remove condition without further discussion. 2. To make a counter offer with price reduction. 3. To maintain condition and kill the deal. It sounds like you have done #1 but now want to have more price reduction. If this is right, then you cannot do that. Now if you have chose #2, you have to realize that it is considered a "new offer". You are essentially asking the seller to sell at a lower price, with reduction. The seller can say "no" and walk away totally. Every time there is a change on the on original offer, regardless how minor it is, it runs the risk of the other side rejecting it, thus killing the deal.

Also, people don't "compensate your lack of income" in Canada when a house deal does not go through. You can try to sue these people. In fact, you can sue anyone for anything in Canada... it's a free world here. However, you are not likely going to win.

I think you should have a serious talk with your RE lawyer if you want your deposit back. If you continue to let this drag on, the seller may come back and sue you! They can potentially sue you for the loss of opportunity and house depreciation while you are refusing to pay the full purchase price as agreed. So please be careful.


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## abroad (Feb 26, 2013)

Its not the house what causses the lake of income.
Its a lot more than the 10000 you did mention.
I think that the seller should meet the contract, one of the things is that we are in tittle(if you call like that) to do inspection's.


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## MoreMiles (Apr 20, 2011)

Your posts seem very vague to me. What exactly was "the issue"? Was it related to a negative home inspection report, like cracked foundation, ruptured roof, etc?

Was it a conditional offer? What was the wording of home inspection? For example, some people will write "inspection result to the absolute satisfaction of buyer" or "inspection result showing no major deficiency". So if your offer has the first type, you can walk away. If your offer has the second type, you cannot walk away unless there is a serious defect of house. There is this saying... "the devils are in the details". So read and re-read your contract carefully.

Normally, it does NOT take 2 months to remove a condition. So I am pretty sure the deal is dead by now. You should sign a "Mutual Release" form and get your deposit back ASAP. If you still want to buy it, you need to call everyday to push for a progress.

It looks to me that you want a price reduction after the home inspection but the seller refused, so both sides are stuck. But it is very simple... like "Deal or No Deal". If there is no accepted agreement, there is no deal. You cannot force the seller to give you something because simply you feel like it. You have to make an offer and have the other side accepted. Everything else is simply a wishful thinking on one side... hoping there is a refund / compensation for income, house value, etc.


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## abroad (Feb 26, 2013)

There a 2 things:

The contract says us that there was human drinkable water in a barn that is on the same property and the hydro is disconected more than a half year ago. 

The water can only be solved if they put municipal water in the barn.
The power sould be turned on again but it will take an inspection.

We asked several times before the clossing date t solve this but they did not responce,refused or did lie about it.

Hope that this will make things clear


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## Berubeland (Sep 6, 2009)

They may be trying to conceal the lack of potable water, this is a huge problem.


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