Cancelling a Home Sale Over Size
Published on 29 August 2022, 07:22:56 AM
The resale home looked spacious outside and in, but now you’re seriously contemplating cancelling a home sale over size. Your furniture won’t fit, and the rooms seem far smaller than you remembered them during the realtor’s open house. Could it be real?
Getting out a tape measure and the property survey confirms your suspicions. The home you made an offer on is not nearly as large as it appeared in the MLS listing, or based on your realtor’s verbal representations.
Now that you’re wondering about cancelling, we can pretty well guess your next question: can you pull out of a house sale in Ontario?
Questions you commonly ask Axess Law’s real estate lawyers.
How to Cancel a House Purchase Agreement (Ontario)
Unusual as it may seem, a buyer cancelling a home sale over size can back out of an offer to purchase agreement in Ontario. A first time buyer did just that in 2017, and won his case in Ontario Court of Appeal in November 2020 (Issa v Wilson, 2020 ONCA 756).
When a young home buyer thought he was paying for a 2,000 to 2,500 square foot home, but found out it was only 1,450 square feet in size, he withdrew his offer. He wrote to the real estate agent, querying the discrepancy between the MLS listing that showed it as significantly larger, and an appraiser’s report prepared for his mortgage lender.
How to write a legally valid agreement of purchase and sale.
With no explanation received, the buyer withdrew his $730,000 offer, and demanded return of a $50,000 deposit, plus accrued interest. The trial judge agreed both the real estate agent and homeowner had misrepresented the home’s size.
The agent’s subsequent appeal was dismissed. As the appeal court found, making a false statement about the size influenced the home buyer’s decision to purchase. Youth and inexperience aside, the misrepresentation induced the buyer to enter into the contract.
Fortunately, the contract was rescinded and deposit returned, with interest.
Cancelling a home sale over size — your buyer’s rights
Cancelling a Home Sale
How do you cancel a house sale agreement over size? While it’s true sellers can seek a penalty for buyers not closing on time in Ontario, including your desired home’s size in the agreement of purchase and sale makes a difference.
Axess Law reviews your draft or signed agreement to include essential clauses that can protect your rights, and prevent unnecessary penalties, when it comes to cancelling a home sale over size. You can cancel a home sale by notifying your Axess Law real estate lawyer. We negotiate with the seller’s lawyer to withdraw and, if they agree or your contract allows it, get your buyer’s deposit back.
Advice for first time home buyers.
Amending Home Buyer Contracts in Ontario
If you’re the seller wondering what happens if I cancel the sale of my house, we suggest you go back to your contract. Sellers and buyers can mutually agree to amend an agreement of purchase and sale, including cancelling a home sale altogether. It’s just best to have legal advice any time you make a change to a legally binding contract.
Changing your offer to purchase and Ontario real estate law.
Why You Need a Real Estate Lawyer
Buying your first home or selling one of many, Axess Law has a real estate lawyer nearby. We review your agreement of purchase and sale for home inspection clauses and subject-to conditions that allow you to exercise your buyer’s right to cancel if you have to, or protect your interests if you’re the seller.
Word a home inspection clause (Ontario) to ward off trouble.
We conduct searches to ensure construction liens, or other financial encumbrances, aren’t holding you back from transferring title to a property to your name. Our licensed real estate lawyers in Toronto, Greater Toronto Area or Ottawa can add a spouse to title to a property, or include family members on title when they plan to co-own a property with you.
What happens to the deposit when buying a house.
Current mortgages you may have require discharging before you can move on to a new property.
Axess Law’s virtual real estate lawyers can complete all the required paperwork from the comfort of your home or office. Whether you’re contemplating assuming the seller’s mortgage, or using a mortgage broker, Axess Law liaises with lenders to complete required legal steps to sign and witness new mortgage documents.
Your home purchase or sale is ready to go, on time and on budget when you use Axess Law Ontario.
Affordable Legal Services for Home Buyers and Sellers
Axess Law charges less than traditional lawyer services because you only pay for the legal services you actually need. Flat fee legal services are the affordable way to buy or sell your principal home or investment properties.
You could pay hundreds more to finalize your home purchase or sale. At Axess Law, we bill you just $999.99 and up plus HST to buy an Ontario home or $799.99 and up plus HST to sell. You can add a family member to a property title in Ontario for only $649.99 and up plus HST, or refinance mortgages for $799.99 and up plus HST.
Save thousands when you qualify for the Ontario land transfer tax rebate.
You receive a final statement of adjustments showing exactly what both you and the seller paid. Your Axess Law bill has no hidden fees or surprises, and we explain the bill in detail.
Make Appointments Quickly and Conveniently
Access lawyers anywhere in Ontario with Axess Law’s virtual real estate lawyers. Complete real estate transactions with ease when you use our remote video conference call services. Axess Law is a pioneer when it comes to virtual legal services. You can trust our virtual real estate lawyers for secure, confidential online real estate closures.
How virtual real estate closings work.
If quick, convenient legal services are what you’re looking for, use our easy, online booking form. Speak to a live operator if you need assistance finding dates and times that fit your schedule. Our 647-479-0118 lawyer line responds promptly to your request, or dial us toll free at 877-402-4207 anywhere in Ontario.
Axess Law has Greater Toronto Area and Ottawa law offices for your convenience. Ask us about day or evening appointments, 7 days a week. Axess Law’s onsite parking and easy transit access make dropping by a breeze.
