As the market has turned in the spring of 2022 unfortunately there were many breached contracts, and as we discussed with a well known and respected real estate litigation lawyer, the number of current cases is unprecedented. These unfortunate cases already have or will go to trial within the next couple of years, here we are listing 15 examples of the cases from the past to illustrate what happens when the buyer breaches the agreement of purchase and sale.
Different cases: resale, preconstruction, deposits delivered or not, selling for less and selling for more, some buyers couldn’t close others just changed their mind, mostly higher end properties but not all.
What they all have in common is that the party breaching the contract loses, and the awards can be life altering.
For each case we are providing a link to the actual ruling.
Tabrizi v. Majesty Development Group Inc
Purchase Price: $1,960,000.
Date Purchased: March 2017.
Deposit Amount: $150,000.
Damages Awarded: $659,570.
Purchase Price: $1,050,000.
Date Purchased: June 2021.
Deposit Amount: $50,000.
Damages Awarded: $140,886.
Deposit was not delivered.
Purchase Price: $1,500,000.
Date Purchased: February 2017.
Deposit Amount: $50,000.
Damages Awarded: $174,284.
Purchase Price: $1,167,000.
Date Purchased: March 2017.
Deposit Amount: $50,000.
Damages Awarded: $306,130.
Purchase Price: $1,410,000.
Date Purchased: November 2019.
Deposit Amount: $100,000.
Damages Awarded: Amount of the deposit.
The seller sold the property for $115,000 more than the original sale price within couple of weeks after the contract was breached and was awarded the deposit of $100,000.
Tribute (Grandview) Limited v. Rafindram
Purchase Price: $1,038,990 plus upgrades of $101,112.
Date Purchased: September 2016.
Deposit Amount: $99,166
Damages Awarded: $381,971 plus $22,000 legal fees.
Purchase Price: $2,450,000.
Date Purchased: March 2017.
Deposit Amount: $150,000
Damages Awarded: $806,380.
Rosehaven Homes et al. v Aluko et al.
Purchase Price: $1,523,162.
Date Purchased: April 2017.
Deposit Amount: $136,723.
Damages Awarded: $331,922 plus interest.
The property sold for $2,328,800 in February 2022, $805,638 more than the price as per breached contract.
Purchase Price: $3,200,000.
Date Purchased: June 2017.
Deposit Amount: $400,000.
Damages Awarded: $1,227,756.
Purchase Price: $2,214,813.
Date Purchased: September 2016.
Deposit Amount: $150,000.
Damages Awarded: $616,601.
Purchase Price: $4,100,258.
Date Purchased: March 2017.
Deposit Amount: $334,100.
Damages Awarded: $957,607 plus interest.
Purchase Price: $1,499,000.
Date Purchased: May 2021.
Deposit Amount: $70,000.
Damages Awarded: Forfeited deposit of $70,000 plus $12,000 costs.
The property sold shortly after the contract was breached for $1,677,022, $178,022 more than the original price per APS.
Artista Homes (Kleinburg) Inc. v. Griu
Purchase Price: $1,728,109.
Date Purchased: February 2017.
Deposit Amount: $134,738.
Damages Awarded: $612,847.
Purchase Price: $995,000.
Date Purchased: May 2017.
Deposit Amount: $35,000.
Damages Awarded: $122,221 plus interest.
Park Avenue Homes Corp. v. Malik
Purchase Price: $788,900.
Date Purchased: February 2017.
Deposit Amount: $60,000.
Damages Awarded: $158,936.
For additional information on this subject please have a look at this commentary by Toronto's lawyer Peter S. Spiro.
If you enter into a real estate contract, please ensure you have the ability to fulfill it.
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