Can a Seller Sue Me If I Don’t Close in Toronto?

Yes, a seller can sue for losses if you fail to close, including legal costs, carrying costs, and any drop in the resale price.

When a buyer defaults, sellers can sue for damages beyond keeping the deposit. Courts in Ontario generally permit sellers to pursue additional damages if they can demonstrate a financial loss.

What Can Sellers Claim If They Sue?

• Carrying costs: Mortgage payments, property taxes, and condo fees while the home remains unsold.
• Legal fees: Costs of litigation, mediation, or enforcing the agreement.
• Price difference: If the home eventually sells for less than the original deal, the buyer may be liable for the shortfall.

How Serious Is This Risk?

Disputes over failed closings are not uncommon in Toronto, especially in volatile markets. While the deposit is the first line of protection for sellers, courts have often awarded additional damages if losses are proven.

The Fox Marin Team emphasizes buyer readiness before an offer is ever submitted. Understanding financing, obligations, and risk is the best way to avoid default and protect yourself from potential legal action.

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