There are numerous reasons why a real estate transaction may go ‘off the rails’ on the closing date or just before. Lawyer Bob Aaron wrote an article in the Toronto Star recently that discussed a case where a transaction failed to close. As Mr. Aaron rightly concluded:
The lesson to be learned from this sad case is that any real estate transaction carries the risk of going off the rails.
If that happens, it is critical that all parties act reasonably and get solid legal advice on the risks involved, so that damages can be minimized and the possibility of an ugly court case is avoided.
Not every last minute issue allows a party to refuse to close. Keep this in mind when buying or selling your next property to avoid possible negative legal consequences later on.