In any event, my question is about the sales contract. Specifically, the contract contains a deposit and trust provision, which I am very strange, especially given the context of LICO that I purchased. The language of the contract is reproduced verbatim below: Pro-Tip: Even if you have just started the home hunt, make sure that your deposit (about 5% of the purchase price in Toronto) is liquid and not locked into a bank or virtual investment. Many buyers get a line of credit before purchase and use it to finance the deposit if their money is in the investment or RRSS. In many bid situations (i.e. the bidder war), it is good practice to make a certified deposit at the same time as the offer. This reduces the risk that the seller will have to manage the buyer`s remorse the next day and strengthens your position relative to other bidders. In Ontario, a down payment is usually paid by cheque or certified payment instruction. For real estate, no fixed down payment is required by law. While deposits are technically negotiated between buyer and seller, local customs authorities generally indicate what is “acceptable.” In Toronto, 5% of the purchase price is generally considered “normal.” When we bought our house in Prince Edward County, a $1,000 apartment was “normal” at the time. After making the results, the court ordered that the $500,000 surety be refunded to the purchaser.
Our aunt signed a contract Friday to buy a condo. On their behalf, we tried to deliver the deposit to the seller broker the next day (Saturday), who is an independent agent working from his own apartment. It was not available and was not in town when we tried to deliver it. Are we still considered a breach of contract if we did everything we were legally required to do, but if we did not make the deposit within 24 hours, the brokerage company was not available to get it? The seller`s position was that he was ready, willing and able to close, but that the buyer failed to pay the rest of the purchase price or execute the closing documents. The seller also submitted that the buyer then refused the contract and that the seller had the right to terminate the contract and withhold the down payment. Sometimes, in the wrath of a bidding war, a buyer pays more than expected and wakes up the next day with regret. If the offer was fixed (i.e. there were no conditions such as financing or home inspection), they must make the purchase and pay a deposit.