{"id":1743,"date":"2020-02-15T16:16:40","date_gmt":"2020-02-15T21:16:40","guid":{"rendered":"https:\/\/terrygetsmortgages.ca\/?p=1743"},"modified":"2020-02-15T16:16:40","modified_gmt":"2020-02-15T21:16:40","slug":"a-hard-lesson-learned","status":"publish","type":"post","link":"https:\/\/terrygetsmortgages.ca\/a-hard-lesson-learned\/","title":{"rendered":"A (Hard!) Lesson Learned!"},"content":{"rendered":"
\"\"An Ontario Court of Appeal delivered an expensive lesson to a GTA homebuyer who made an unconditional offer that was later retracted.<\/div>\n
Back in 2017, ‘Sammy’ \u00a0had made an unconditional offer\u00a0on an East GTA, Ontario, home for $1,871,000. Following the introduction of the province\u2019s 15% Non-Resident Speculation Tax (NRST), Sammy\u00a0 found herself in the midst of a market downturn and unable to sell her home to obtain mortgage financing for her new purchase.<\/div>\n

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After rescinding her offer, property owners Richard and Sylvia ‘J’ were forced to re-list their home for $1.251,888\u2013nearly $620,000 below the original offer.\u00a0A lower Ontario court ordered Sammy to pay damages of $619,112, despite pulling out of the purchase offer. She repealed the judgment and just last month an Ontario Court of Appeal sided with the lower court and ordered the original payment, plus $15,019 in legal costs.<\/div>\n
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\u201cIn this case, the appellant deliberately chose not to include a condition that she had to be able to sell her home and obtain mortgage financing before closing as a term of her offer to purchase,\u201d the court wrote in its judgment.<\/div>\n
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\u201cShe would reasonably have known that there was a risk her home would not sell at the price she sought but made an unconditional offer to purchase the respondents\u2019 home because she wanted her offer to be accepted (although she was not the highest bidder)\u2026The appellant\u2019s contract was not frustrated; it was breached by the appellant.\u201d<\/div>\n
<\/div>\n
Lesson Learned<\/strong><\/div>\n
It was an expensive lesson for this homebuyer, but one that other buyers should take into consideration when making unconditional offers.<\/div>\n
Buyers can\u2019t rely on \u201csupervening events\u201d like mortgage regulations or regional foreign homebuyer taxes to provide grounds for backing out of a mortgage contract,\u201d\u00a0noted<\/span><\/a> a lawyer involved <\/span>in a review of the case.<\/div>\n
\u201cHowever, because the appellant\u2019s offer was not subject to any conditions, the announcement of the NRST (Non-Resident Speculation Tax), however unexpected it may have been, did not force the appellant to do something different than what she agreed to.\u201d<\/div>\n
Caveat Emptor (let the buyer beware)!<\/strong><\/div>\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

An Ontario Court of Appeal delivered an expensive lesson to a GTA homebuyer who made an unconditional offer that was later retracted. Back in 2017, ‘Sammy’ \u00a0had made an unconditional offer\u00a0on an East GTA, Ontario, home for $1,871,000. Following the introduction of the province\u2019s 15% Non-Resident Speculation Tax (NRST), Sammy\u00a0 found herself in the midst […]<\/p>\n","protected":false},"author":2,"featured_media":1746,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/posts\/1743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/comments?post=1743"}],"version-history":[{"count":0,"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/posts\/1743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/media\/1746"}],"wp:attachment":[{"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/media?parent=1743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/categories?post=1743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/terrygetsmortgages.ca\/wp-json\/wp\/v2\/tags?post=1743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}