What happens if you don’t close?

May 8, 2013

Law Day

I have had this situation a few times: a client calls not too long before closing, and they’ve gotten cold feet. What happens if you don’t want to close the deal?

Generally, if you refuse to close, you must have a legitimate reason. As a buyer, if you find something out that would severely affect your enjoyment or use of the house, or your title to it, and you had no way of discovering it any earlier, you may be justified in not closing. As a seller, you are somewhat limited in why you can legitimately refuse to close, beyond not receiving funds. If you believe you have a legitimate reason, and refuse to close, you still run the risk of ultimately being found not legitimate, and then you will have to pay all of the other side’s costs that result from not closing. This could be additional mortgage costs, moving costs, or even the extra cost of buying a different house.

Before putting in an offer, be certain that you want it.

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About Cesia

Cesia is a real estate lawyer at Wall-Armstrong and Green, a boutique law firm in Barrie focusing on real estate and estates. When she’s not online, she can usually be found in her garden.

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