Real Estate

Buyer loses $20k deposit ( buyer was an agent)

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  • Apr 28th, 2021 11:22 pm
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[OP]
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Dec 24, 2002
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Buyer loses $20k deposit ( buyer was an agent)

Toronto Star: Superior Court lets home sellers keep the $20,000 deposit after the buyers backed away from the signed deal.
https://www.thestar.com/life/homes/2021 ... -deal.html

Interesting article, not sure why the buyer backed out I suspect it had more to do than the sq footage
http://www.heatware.com/eval.php?id=14378
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Jul 3, 2007
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Toronto
rb wrote: Toronto Star: Superior Court lets home sellers keep the $20,000 deposit after the buyers backed away from the signed deal.
https://www.thestar.com/life/homes/2021 ... -deal.html

Interesting article, not sure why the buyer backed out I suspect it had more to do than the sq footage
lol...even better they are realtors
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Mar 30, 2010
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joepipe wrote: lol...even better they are realtors
That is the most satisfying part about the story.

Wish they had lost more than just 20k, lol.
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Feb 11, 2009
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I'm aligned with the Judge on this one.

The sellers were definitely being 'scummy' in their representation of the sqft on the MLS Listing, however if they provided floor plans which were accurate with dimensions, as well as actually state how they got to the listing sqft in the marketing brochures that were also provided to the buyer, then the buyers don't really have a leg to stand on.

Especially given the buyer was a Realtor who would/should have the knowledge to do his/her due diligence before making the purchase. IF they couldn't do the DD on their own purchase, should scare you on how they treat their buyers.
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dc200 wrote: That is the most satisfying part about the story.

Wish they had lost more than just 20k, lol.
I am thinking they will have the pay the other parties' legal fees too?

Like others said previously if they cant even review their own purchase, can you imagine what they have/would have done for their client?
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[OP]
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Dec 24, 2002
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kangarooz wrote: I am thinking they will have the pay the other parties' legal fees too?

Like others said previously if they cant even review their own purchase, can you imagine what they have/would have done for their client?
yep they will have to pay their own and other parties fees .. though this is probably small claims court so there are limits on costs awards to other parties
http://www.heatware.com/eval.php?id=14378
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Sep 8, 2007
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If these buyers are realtors didn’t they consider the damage to any reputation they might have if this became public....like it has. They look like clowns.

“Oh you were the agents that bought without verifying the data and then got salty? Ok see ya later”
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Oct 23, 2008
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The listing stated that the interior of the dwelling had approximately 2,500-3,000 square feet. The sellers later told the court that the listing gave all realtors access to the home’s photos and details, a marketing brochure, a pre-listing home inspection, and a floor plan of the home with accurate dimensions for each room.

The brochure was also available to purchasers visiting the property and correctly stated the home’s gross, above-grade floor area as 2,155 square feet, plus 665 feet on the lower floor. The brochure stated, “buyer to verify measurements.”
Well, technically the sellers didn't lie. The home is 2155 sqft plus additional basement (665 sqft). The realtor should have done his homework.
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Jan 15, 2010
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Buyer got lucky this was last August and his deposit was so small.
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Jul 3, 2011
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Without providing the actual info I referenced this recently concerning ethics and competence.

The ethics is obvious.

The lack of due diligence incompetence is obvious

The incompetence to accept 1.7% as a deposit on a 1.2 million dollar sale is mindblowing.

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