Buyer's Signed Agreement with No Conditions, But Walked Away Prior to Delivering Deposit

Did he highlight the risk that when you accepted that offer there was no deposit with the offer?

RichmondCA wrote: ↑ Did he highlight the risk that when you accepted that offer there was no deposit with the offer?

The agreement shows a deposit to be paid within 24 hours upon acceptance of the offer which is not uncommon. The buyer just never delivered the deposit.

kazryv wrote: ↑ I don't understand why the **** anyone would make an unconditional offer. There could be all kinds of issues that make them decide not to go ahead with the sale...

Unconditional bids been basically mandatory the past few years because of how competitive the market is for buyers. Sometimes a seller will accept a lower bid if it's unconditional - can be worth a few thousand dollars.

ilim wrote: ↑ Just looked at it and surprise again did not see a single residential RE case where deposit was not paid but later awarded to seller in excees of damages.

I am out of this thread.

Residential or commercial doesn't matter, the underlying laws around deposits in property transactions would remain the same.

Oh and here's another gem from this very recent 2020 case we looked at: https://www.canlii.org/en/bc/bcca/doc/2 ... pletePos=4
[47] Finally, in my view, none of the principles to which I have referred, in particular those in Vanvic, was overturned by this court in Tang. In Tang, this court held that a deposit is forfeitable regardless of whether the other party suffered any damages, and in doing so, reversed Agosti v. Winter, 2009 BCCA 490. Accordingly, in my view, the principle set out in Vanvic that a party may sue another for the amount of an unpaid deposit owing under a contract when it accepted the other party’s repudiation remains the law in this province.

This Agosti case is the one you were posting about in BC as proof of your claim. Surprise, surprise, as I told you it was outdated and sure enough has been proven to be reversed and no longer valid.

As for specifics:
- Argo Ventures Inc. v. Choi, - $300K in unpaid deposit awarded to seller, irrespective of any damages/losses
- GRIFFON SHIPPING LLC V FIRODI SHIPPING - $2.156M in unpaid deposit awarded to seller, irrespective of any damages/losses
- Busnex Business Exchange Ltd. v. Canadian Medical Legacy Corp - $30K in unpaid deposit awarded to seller, irrespective of any damages/losses

DRGN89 wrote: ↑ The agreement shows a deposit to be paid within 24 hours upon acceptance of the offer which is not uncommon. The buyer just never delivered the deposit.

I understand the process, however if you had someone else interested in addition to this offer your agent would've walked you through the pros and cons of both offers, in particular the downside risk of offers with no enclosed deposit.

RichmondCA wrote: ↑ I understand the process, however if you had someone else interested in addition to this offer your agent would've walked you through the pros and cons of both offers, in particular the downside risk of offers with no enclosed deposit.

Unfortunately we did not have another offer at the time as we were not holding offers.

Well you can sue the seller which might not be worth it. You have nothing to lose as i suppose this was all done in less than 24 hours of the offer being signed. So its just better to entertain another offer if you have one or wait for one.

I will advise you to file a complaint against the buying agent and the brokerage with Reco. Most people don do it but it is always advisable to follow through so they dont screw another seller.

Here is an article that sheds light on something similar

https://www.cbc.ca/news/canada/british- ... -1.4232844


"as soon as a real estate contract is signed, they are liable for the deposit regardless of whether the seller can get more or less than the agreed upon price at a later date"

IrfanP53614 wrote: ↑ Well you can sue the seller which might not be worth it. You have nothing to lose as i suppose this was all done in less than 24 hours of the offer being signed. So its just better to entertain another offer if you have one or wait for one.

I will advise you to file a complaint against the buying agent and the brokerage with Reco. Most people don do it but it is always advisable to follow through so they dont screw another seller.

Here is an article that sheds light on something similar

https://www.cbc.ca/news/canada/british- ... -1.4232844


"as soon as a real estate contract is signed, they are liable for the deposit regardless of whether the seller can get more or less than the agreed upon price at a later date"

How did the buyer's agent screw up? Unless they told their client not to provide the deposit, they did their part correctly, it would seem. They can't force the buyer to provide the deposit or complete the transaction.

C

CNeufeld wrote: ↑ How did the buyer's agent screw up? Unless they told their client not to provide the deposit, they did their part correctly, it would seem. They can't force the buyer to provide the deposit or complete the transaction.

C

Client rarely walk away without getting approval from their agent . Just like in another thread on rfd where an agent advised his clients that it was okay to not go ahead with the sale and sent the mutual release without any comments to the seller who refused to sign and refund the deposit.
If the buyers are to get sued the agent would have to testify as well. It is still a contract even though the deposit was not submitted. It is legally binding since both parties have signed.

VanByTheRiver wrote: ↑ Unconditional bids been basically mandatory the past few years because of how competitive the market is for buyers. Sometimes a seller will accept a lower bid if it's unconditional - can be worth a few thousand dollars.

OP's deal was conditional on Status Certificate so this whole discussion is completely moot.

WinterSleep wrote: ↑ OP's deal was conditional on Status Certificate so this whole discussion is completely moot.

That’s not correct either. IF the buyers would have given their deposit cheque to their agent and IF they would have reviewed (or pretended to review) the status certificate, they could have terminated the deal without issue.

As it is, they’ve demonstrated that they entered the agreement in bad faith, and are liable for any damages (including the deposit) suffered by the seller.

C

Kids here are confusing the differences between suing someone and actually winning.

Some "agreement of purchase and sales" include a clause that if the buyer doesn't deliver the deposit cheque within x timeperiod to the Brokerage office, the deal is null and void.

Often this is stated on schedule a or schedule B.

If I were you guys, I would get your agent to advise the buying agent and clients that you'll be proceeding with a lawsuit, as advised by your lawyers.

Then, do nothing. Let it go.

danfromwaterloo wrote: ↑ If I were you guys, I would get your agent to advise the buying agent and clients that you'll be proceeding with a lawsuit, as advised by your lawyers.
Then, do nothing. Let it go.

I would like to see it happen and op can update us on the ruling from a judge, I can see the view from both sides as equally valid.

divx wrote: ↑ I would like to see it happen and op can update us on the ruling from a judge, I can see the view from both sides as equally valid.

Maybe you've misunderstood what I'm saying. You very coolly and calmly inform them that you will be suing them for their actions. Maybe go as far as to have your attorney write a letter informing them that you're in the process of documenting your damages and that you intend to file proceedings.

Then, just don't. Let them crap their pants that you're serious. Let them get a lawyer ready. String them along thinking that they're going to be tied up in a major legal battle. But it never comes. Like their offer - it was never real to begin with. Their fake offer was met with a fake lawsuit threat. Rather fitting given the circumstances.

danfromwaterloo wrote: ↑ Maybe you've misunderstood what I'm saying. You very coolly and calmly inform them that you will be suing them for their actions. Maybe go as far as to have your attorney write a letter informing them that you're in the process of documenting your damages and that you intend to file proceedings.

Then, just don't. Let them crap their pants that you're serious. Let them get a lawyer ready. String them along thinking that they're going to be tied up in a major legal battle. But it never comes. Like their offer - it was never real to begin with. Their fake offer was met with a fake lawsuit threat. Rather fitting given the circumstances.

Fortunately our agents worked together and we were able to resolve it with our buyers and they will be continuing with the deal so it didn't have to come down to this. Deposit has been delivered and all conditions are now fulfilled.

Good to hear OP

DRGN89 wrote: ↑ Fortunately our agents worked together and we were able to resolve it with our buyers and they will be continuing with the deal so it didn't have to come down to this. Deposit has been delivered and all conditions are now fulfilled.

DRGN89 wrote: ↑ Fortunately our agents worked together and we were able to resolve it with our buyers and they will be continuing with the deal so it didn't have to come down to this. Deposit has been delivered and all conditions are now fulfilled.

Glad it worked out for you!