Following a huge run up in the real estate market in and around the GTA in 2021 and early 2022 (up to mid March), there was a massive and abrupt correction resulting in a very high number of breached real estate contracts. Many of these breached real estate contracts have settled prior to going to the courts, but there is still a significant number that went before the judge. Almost 3 years have passed since the market turned south and quite of few of the lawsuits have now appeared on Canlii.
Previously we have posted a list of some real estate breached contracts from 2017 (with few examples from other years), 2017 experienced a crash in many areas although it wasn’t as dramatic or widespread as the 2022 crash.
Below are few examples from the failed 2022 transactions.
Property Address: 368 Highcliffe Dr, Vaughan.
Purchase Price: $1,960,000.
Date Purchased: March 2022.
Deposit Amount: $75,000.
Damages Awarded: $218,138.
The damages awarded are due to $160,000 loss on the subsequent sale and costs to break mortgage, interest, repairs to the property and so on.
Property Address: Waterloo.
Purchase Price: $1,725,000.
Date Purchased: February 2022.
Deposit Amount: $50,000.
Damages Awarded: $532,081 plus interest.
The damages awarded are due to $525,000 loss on the subsequent sale and costs plus additional interest.
Property Address: 5 Mid Pines Road, Toronto.
Purchase Price: $1,080,000.
Date Purchased: May 2022.
Deposit Amount: $40,000.
Damages Awarded: $122,654.
The damages awarded are due to $117,00 loss on the subsequent sale and costs.
Property Address: 192 Oakridge Dr, Scarborough
Purchase Price: $1,608,000.
Date Purchased: March 2022.
Deposit Amount: $90,000.
Damages Awarded: $314,759 plus costs.
The damages awarded are due to $283,000 loss on the subsequent sale and costs plus additional interest.
Zoleta V Singh and Re/Max Twin City Realty.
Property Address: 27 Lemonbalm Street, Kitchener
Purchase Price: $1,150,000.
Date Purchased: February 2022.
Deposit Amount: $50,000.
Damages Awarded: $345,121 plus interest and costs.
The damages awarded are due to a loss on the subsequent sale and costs plus additional interest.
Property Address: 1572 Buckingham Drive, Windsor.
Purchase Price: $465,000.
Date Purchased: March 2022.
Deposit Amount: $10,000.
Damages Awarded: $106,061 plus costs.
The damages awarded are due to a loss on the subsequent sale and costs.
This one is special, falls under the category of “I thought I have seen it all”, and then this comes up. If I had a nickel for every time someone tells me non delivery of the deposit voids the deal.
Property Address: TPH17-80 Harrison Cardens Blvd, Toronto.
Purchase Price: $2,350,000.
Date Purchased: October 2022.
Deposit Amount: $100,000.
Damages Awarded: $502,279 plus $25,000 punitive damages, interest and costs.
The damages awarded are due to a loss on the subsequent sale, costs plus additional interest and exceptional malicious misconduct by the defendant.
Vandermolen Homes Inc. v Mani.
Property Address: 26 Triebner Street, Exeter.
Purchase Price: $937,400.
Date Purchased: January 2022.
Deposit Amount: $93,740.
Damages Awarded: $236,697 plus interest and costs.
The damages awarded are due to a loss on the subsequent sale, and costs plus additional interest.
Vigneswarajah et. al. v. Tummala et. al
Property Address: 25 Ash Hill Ave, Caledon.
Purchase Price: $1,650,000.
Date Purchased: February 2022.
Deposit Amount: $60,000.
Damages Awarded: $458,070 plus interest and costs.
The damages awarded are due to a loss on the subsequent sale, and costs plus additional interest.
There are many more, in conclusion the buyers breaching the contracts always lose, sometimes life altering amounts, not delivering a deposit doesn’t void the deal, real estate contracts are a serious matter not to be taken lightly.
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