Buying a house is the most expensive purchase that you will ever make. There are many factors to consider when buying a home and, most importantly, it requires understanding the contract because buying a house is complicated.

When an offer is formally presented for making an offer on a home you want to buy, you will need to fill out a lot of paperwork specifying the terms of your offer. In addition to the obvious items, like the home’s address and purchase price of the property, there are additional items that you should consider adding to the purchase contract.

When people go to purchase a home, there is sometimes confusion concerning conditions and escape clauses in real estate agreements. Although there is some concern over the clarity of the conditions, it is rather straightforward and dependent on how the clause is initially written. A potential homeowner should keep in mind that closing the deal isn’t the biggest step in the transaction, but rather it’s the small steps in getting to the end result.

In technical terms, a condition is defined as “a requirement that is fundamental to the very existence of the offer.” If there is a break of a condition on the purchase agreement, the buyer is allowed to get out of the contract and the full amount of the deposit is returned.

According to Brian Madigan LL.B., read articles Ontario Real Estate Source, there are really just two categories for conditions:

1. Pending deals (those which require a confirmation)
2. Confirmed deals (those which include an escape)

He states that “pending deals are usually described by a condition precedent clause, and confirmed deals with a provision for escape are evidenced by the condition subsequent clause. The condition precedent clause begins with the words “this agreement is conditional upon….” and the condition subsequent clause begins with the words “the purchaser shall have the right to terminate…”

There are numerous types of conditions that might be included in the Offer to Purchase, but one of the most important clauses for a potential buyer to understand is the financing condition.

What happens if you’re selling your house during challenging situations or a tough market? The resources below can help you overcome anything:

• Can You Successfully Sell a House With a Stigma?
• Can You Sell a House When You Have Tenants?
• Why Sellers Hesitate to List Their Homes for Sale

Financing Condition:

The financing condition protects the buyer, which essentially tells the seller that the purchase is conditional on you obtaining financing. It will state that the financing that you obtain must be satisfactory to you in their sole and absolute discretion. This means that the terms and conditions must be satisfactory to you, the buyer. This condition is included because if you buy a property without the financing condition and you are unable to get the required funding, you are in trouble. A financing condition protects you from losing your deposit and being sued by the seller for non-completion of the transaction. If your offer is conditional upon financing, then you are obligated to seek financing in good faith. You can’t just back out of the potential deal simply because you changed your mind.

In addition to the Financing Condition, here are some other conditions that might be included in the Purchase & Sale Agreement and what they can mean for you:

Subject to Inspection:

The home inspection clause is standard and appears in almost every residential real estate transaction. This condition gives the buyer the right to have the home professionally inspected by a certified home inspector to evaluate the house that is being sold. The right for the home buyer to go on the property with the home inspector is granted by the owner of the property. This condition is the buyer’s way of being protected from the unknown deficiencies in the home. The house must pass the inspection for you to proceed with the purchase.

For more on home inspections check out:

• Your Home Inspection Report: 5 Things to Look Out For
• What To Look For In A Home Inspector

Subject To Legal Review:

This clause indicates that the buyer will proceed with the purchase of the home provided their lawyer can first review that all of the conditions have been met and approves the contract. This takes places within a specified time limit, such as 24 to 48 hours.

Do you need to sell a house before you can buy? The following resources will get you off to a great start:

• What’s Your House Really Worth?
• Minor Upgrades, Maximum Results
• Our Full-Service Real Estate Team’s Guide to Marketing Your Home

Subject To Survey:

A subject to survey is another part of a solicitor’s review in determining if there are any defects in the title. It will determine if the building(s) on the land comply with zoning by-laws or if there are any encroachments by building(s) onto adjacent lands. The survey will also determine whether any building(s) from neighbouring lands encroach upon the subject’s property. A recent survey can disclose the location of fences to the property boundary and if there have been recent additions to the property. Lastly, the survey helps to determine whether anyone else may have a claim against the subject property or if any rights of way or easements exist.

Subject To Appraisal:

This clause represents a request for a written, formal, impartial estimate or opinion of value that adequately describes the property as of a specific date. It is supported by the analysis of relevant data for the home. The report is conducted by an official appraiser to determine if the purchase price that your offer represents is reasonable and fair market value. The report includes such items as general information, legal description, taxes, assessed value and age of the dwelling. It also describes the neighbourhood, nearby schools, shopping centres, common types of dwellings, services, and utilities.

Making Your Own Conditions:

You can add any additional conditions that you feel are important for the seller to consider you offer, like removal of garbage from the back yard, leaving window treatments, appliances, special lighting, etc. While the conditions are meant to protect you and you should take advantage of them, beware of including too many in the offer because you may lose the deal and the seller will reject your offer.

How can you evaluate offers when they come in? Read more about about what offer you should accept here.

Buyer Beware:

Even though conditions are standard in purchase agreements and a good real estate agent is watching out for your best interest in the contract, it’s still well worth your while to educate yourself about the key components of a purchase agreement. This is a huge investment and probably your home for many years to come, so be an educated buyer and do not leave anything to chance.

For more real estate fundamentals be sure to read:

• What Happens When a Buyer Breaches Their Contract?
• What Real Estate Lawyers Do
• How To Negotiate A Real Estate Contract
• Fact Vs Fiction About Working With A Real Estate Agent
• What’s in Your Listing Agreement?

Whether you’re ready to buy right now or just researching, Woolcott Real Estate is here to help. Feel free to reach out with any questions you may have!

With the real estate market moving at an unprecedented pace for so long, unconditional offers have become the norm. Historically, offers typically had at least one to three conditions that had to be met before the sale could go through. However, buyers have needed every advantage they could get in the current competitive market. Dropping all contingencies is one way to make their bids more attractive to a seller. How does this help? 

While every homeowner wants to earn as much as possible from their sale, the highest amount isn’t always everything. The chance to skip a time-consuming and potentially deal-breaking home inspection can be appealing, even if it is a few thousand dollars less. Of course, all things being equal, a seller will accept the highest amount with the fewest contingencies possible. 

The Spring market is underway and houses are still commanding unprecedented high prices. Is the time right for you to sell? Here are some articles to guide you:

• How To Sell An Investment Property
• Can A Local Agent Sell Your House for More Money?
• What is a Home Market Evaluation?

However, there has been a recent change in the market, which seems to be slightly less competitive than it was just a few months ago.

What is Driving the Change?

The real estate market is complex, and there are natural fluctuations throughout the year. We won’t know if what is happening is the beginning of a long-term trend or just a brief hiccup. However, we can make our best guess based on what has happened in the past and the current information we have now. 

Rising Inflation Costs

Housing prices have soared to unprecedented highs all over the country. In addition, gas prices have also increased significantly, which drives up the cost of many other goods and services. As the cost of living increases, some buyers have withdrawn from the market due to a lack of funds. Others are watching with a hopeful eye to see if things will shift in their favour.

The Recent Interest Rate Increase

Earlier in April, the Bank of Canada raised the target interest rate by 50 points, the most significant overnight change in decades. This follows the 25-point increase that took place earlier in March. In addition, they have announced that another hike is likely to come in June. As a result, many homeowners are selling now, while buyers are motivated to take advantage of the still relatively low interest rates.

The Busy Spring Market

The real estate market never slowed down during the pandemic, but Spring is traditionally the busiest time of year. Things are slowly getting back to normal, and the past month has seen slightly more available listings. It will be interesting to see if this slight cooling of the frantic seller’s market continues after the busy season is over.

Potential Anti-Speculation Legislation

Ontario has already imposed a foreign buyer tax on non-residents, raising it from 15% to 20%. And both the provincial and federal governments are considering additional legislation to discourage speculation, foreign investors and house flipping. If this happens, the market might become less competitive for buyers.

Real estate is still one of the safest investments, even in a changing market. Here’s How To Grow Your Portfolio in 2022.

The Surprising Return of Conditional Offers

Some sellers have been surprised to receive conditional offers for their homes. However, these have always been the norm. It’s only in the last few years that the situation has become very unbalanced. The market hasn’t changed significantly and still strongly favours sellers. Even though conditions seem to be making a comeback, many listings still receive multiple offers that are well over the asking price. 

The Most Common Conditions

What kind of conditions can sellers expect if the market continues to rebalance? There are many contingencies, but we see these three most frequently:

1. Conditional on sale of the buyer’s current home. A buyer rarely has enough cash available to pay for a new home outright. Most people rely on the funds from selling their existing property before committing to purchasing another. As the market got more competitive, many potential buyers took the calculated risk and placed offers without this condition. It paid off most of the time because every listing was almost guaranteed to sell.
2. Conditional upon home inspection. Buying a house with a host of expensive problems is everyone’s worst nightmare. After coming up with enough money to purchase the home, many people don’t have a lot left over for extensive renovations. This condition protects the buyer from committing to a purchase that is unsafe or unsuitable.
3. Conditional on finance approval. Before a buyer commits, they want to ensure that they will get enough financing to cover the purchase. There are few things worse than signing on the dotted line only to find out the bank won’t lend you enough to buy the home. In the current market, most buyers get a pre-approval before submitting offers. As a result, many buyers drop the financing condition to make their offer as compelling as possible.

How To Respond To Conditional Offers

You can respond to any kind of offer in three ways:

1. You can meet the condition and accept the offer.
2. You can make a counteroffer, either for more money or to drop the condition (or both).
3. You can reject the offer and move on to the next one.

Some sellers may feel discouraged when conditional offers come in, but there is no cause for alarm. It is better to receive a conditional offer that proceeds than an unconditional offer that fails because a buyer got in over their head. How do you know if you should accept or reject an offer? Real estate can get complicated, especially in competitive markets. 

An experienced Realtor® can guide you and help you make the best decision for your situation.

Do you have questions about buying or selling in the current market? You can book a free call with our team right here.

Is it time to purchase a new home?

What an exciting experience buying a new home can be. You’re creating a new and fresh future for you and your family. Regardless if you’re looking for something bigger, a little more modern, or with an open concept design, you might need a little help getting started. A real estate agent can help you determine exactly what you’re looking for, in what price range, and then truly bring your dream home to light.

Let’s take a look at 7 benefits of working with a real estate agent:

1. Better Access to Homes

Real estate agents know the local market inside and out. Although most homes are listed online for buyers to explore, many sellers want to keep their sale rather private. There are many reasons for this, including nosey neighbours, divorce, financial struggle, health, or just family and friends in general that they might not want to know that they are selling their house.

In these instances, a real estate agent can prove to be quite helpful. They can provide you with exclusive access to a home that otherwise, you may have missed.

On the flip side of the transaction, a real estate agent can help you maximize the value of your home when selling. Find out more in the posts below:

• Our Full-Service Real Estate Team’s Guide to Marketing Your Home
• FSBO vs Real Estate Agent Assisted Sales: What’s Better?
• Should You Use the Same Agent to Sell and Buy a House?

2. Negotiation

An experienced real estate agent can detect issues with a potential home that otherwise, may have gone unnoticed. They will review a home evaluation in great detail, while observing the house for themselves as well.

In instances where there are some areas that require improvement, your real estate agent can help to negotiate. This negotiation process includes having the seller repair the issue as a part of the agreement, or lowering the price to accommodate future renovations.
Without the assistance of an experienced realtor, these problems may go undetected, or your negotiating skills may not result in the outcome you were hoping for. When it comes to your potential future home, it can get emotional.

No matter how level-headed you usually are, buying a home is a very overwhelming and exciting process. Allowing an unbiased realtor with no emotional attachment to the home make the negotiations can prove to be your saving grace when it comes to getting what you want, and most importantly, what you deserve.

3. Paperwork, Paperwork, Paperwork

There’s no doubt about it, along with the sale of a home comes a copious amount of paperwork. Some of these documents can include the:

• Deed
• Bill of sale
• Affidavit of title
• Seller’s affidavit
• Transfer tax declarations
• Written offer
• Repairs

When it’s all said and done, you’ll probably have an entire shelf dedicated to the purchase of your new home. With all this paperwork comes signatures, records, and multiple copies. A real estate agent can help you track the paperwork, and most importantly, ensure that everything is signed and complete.

Not only that, but most real estate agents will keep your paperwork on file for many years following the sale. Although you should most definitely keep all this paperwork, if you have any questions or concerns down the road, your real estate agent is only a call away.

Most transactions proceed seamlessly, but it pays to be ready for anything. Here’s some of what you can expect to be dealing with:

• What Real Estate Lawyers Do
• How To Negotiate A Real Estate Contract
• The Deal Fell Through. What Happens Now?

4. Save Money

An experienced real estate agent has been around the block once or twice. This means that they will most often bring quite a bit of knowledge to the table when it comes to the value of certain neighbourhoods and homes. In fact, most experienced realtors can estimate the value of a home from the moment that they walk into the door.

They can guide you to the listings that offer the most opportunity to provide you with what you want, and at the price you want, too. In saying that, they can also avoid the listings that most likely won’t provide you with what you’re looking for, saving you both time and money.

5. Guidance and Support

As exciting as purchasing a home can be, it can also prove to be quite emotional and overwhelming as well. A real estate agent can provide you with guidance and support through each step. They will be at your side throughout each home viewing, helping you understand why the design of the home might work for you and your family, or why a home just isn’t worth investing in – due to costly repairs.

Your realtor can help you feel confident and at ease throughout the process, ultimately helping you make a decision that will benefit both you and your family for many years to come.

6. Finding the Right Homes

Is there something unique that you were looking for in your future home? From customized pet bedrooms and backyard landscape designs, to open concept kitchens and elaborate vintage-style fireplaces, if there is something specific that you are looking for in a home, your real estate agent will know where to find it.

Real estate agents don’t want to waste your time or money. They are very attentive when it comes to finding you exactly what you’re looking for in a home.

Are you selling a home to buy a new one? Here are some other helpful resources:

• • What’s in Your Listing Agreement?
  • Should You Sell Your House or Rent It?

7. Avoid Closing Issues

In the final hours before the home is officially yours, you don’t want any bumps in the road. An experienced realtor can foresee any issues from miles away, helping you overcome obstacles or resolve them before it’s too late.
Some closing issues can include:

• Document errors
• Mortgage delays
• Last-minute requests
• Unclear titles
• Issues during the final walkthrough

An experienced realtor can help you resolve these issues, and so much more. Especially when your real estate agent is part of a reputable, strategic, and knowledgeable team. Such as Woolcott Real Estate.

Our team of tactical and highly-qualified real estate agents are truly experts when it comes to the local real estate market. They can help you find the perfect home, and at the perfect price too. Contact our specialists at Woolcott Real Estate if you’re looking for houses for sale in Ancaster, Dundas, Waterdown, Hamilton, and more!

There’s no question that Toronto is an incredible place. Whether you’re a foodie, a music fan, an art lover, or simply an appreciator of thriving urban landscapes, you’re bound to enjoy Canada’s largest city. So why are many diehard Torontonians migrating west to Hamilton?

The fact is, Hamilton has always had a lot to offer. But recently, the city has been receiving its due. Many home buyers are looking at it as far more than an affordable alternative to Toronto. Instead, they’re viewing Hamilton as an exciting urban centre in its own right.

Looking to put down roots in the perfect Ontario city? Check out our comparison of Hamilton vs. Toronto to decide which place is right for you…

Hamilton is growing in size and popularity. A home in Hamilton is in high demand these days. If you currently live in Hamilton, read our blog to see why now is a great time to sell your Hamilton home. Read more here!

Overall quality of life

First up, let’s talk about the labour market. Hamilton has a low unemployment rate, and wages are generally high. Residents also find that their dollars stretch pretty far in the city—both when it comes time to purchase a home, and in terms of the costs of living. Of course, Toronto also has a strong job market. But it’s notoriously pricey when it comes to housing and day-to-day expenses.

Wherever you decide to live, your daily commute is bound to have a major impact on your quality of life. It’s worth mentioning that Hamilton isn’t affected by heavy traffic the way that Toronto and many other cities in the region are. Fortunately, both cities are well served by transit—Toronto by the TTC, and Hamilton by the HSR.

The real estate market is changing fast! Read some of our recent posts to stay updated:

• A Back to Basics Guide to Maximizing Your Sale
• Minor Upgrades, Maximum Results
• Why Sellers Hesitate to List Their Homes for Sale

Amenities

Next up in the Hamilton vs. Toronto debate: amenities. Let’s start with restaurants. Simply put, we couldn’t be more excited by the food renaissance that’s happening in Hamilton. Eateries like Quatrefoil (which serves up incredible French-inspired fare) and Born and Raised (where you’ll find exquisite Italian dishes) have helped put the city on the culinary map.

Of course, Toronto has an amazingly diverse restaurant landscape—from the multiple-course meals at Edulis to the perfectly-prepared rolls at Sushi Kaji. That said, Hamilton’s food scene has evolved to the point where many of Toronto’s top chefs are setting up shop there.

If it’s a day of shopping you’re after, both cities are a great bet. In Hamilton, we recommend Lime Ridge Mall for a full-fledged shopping experience. For unique local shops, check out quaint districts such as Locke Street and James Street North. In Toronto, the Eaton Centre is the most popular shopping centre, while West Queen West is one of the best areas for smaller boutiques.

If you’re thinking about buying a home in Hamilton, you need to know these top 5 things. Read more here.

Culture

Interested in music and art? If so, you’ll never get bored in Hamilton. The city is home to one of the most exciting music scenes in Canada. Music venues range from large-scale options (like FirstOntario Centre) to intimate clubs (Like the Corktown Pub). You’ll also find a ton of places to check out great art in the city, from the prestigious Art Gallery of Hamilton to the funky Redchurch Café and Gallery.

Of course, Toronto is a major arts and cultural hub. The city is home to the impressive Danforth Music Hall, the legendary Horseshoe Tavern and the eccentric Lee’s Palace (among others). You’ll also find the AGO there, along with a multitude of smaller galleries spread around the city—from West Queen West to the Distillery District. In short, there are many tried-and-true spots to immerse yourself in the arts in Toronto (though we’re partial to exploring the exciting, up-and-coming scene in Hamilton).

Green space

If you ask us, access to green space is a major part of having a great quality of life. Fortunately, the City of Hamilton maintains thousands of acres of parkland. One of our favourite places to enjoy the great outdoors is Gage Park. This 29-acre space is perfect for outdoor recreation. Other great parks in the area include Pier 4 Park and Bayfront Park. The city also offers trails galore, and its conservation areas can’t be beat (Confederation Park is a great one).

While sprawling Toronto may not be steeped in natural beauty, it’s got its fair share of great green spaces too. High Park (which is almost 400 acres and bursting with greenery) and Trinity Bellwoods Park (known for its tennis, volleyball and skating facilities) are just two examples.

Hamilton has a lot going for it! Read more about why you should choose Hamilton for your next move here:

• Hamilton’s Top 5 Up-and-Coming Neighbourhoods
• Our Complete Guide to Central Hamilton
• 5 Things to Know About Hamilton Real Estate

Real estate

Generally speaking, home prices are more affordable in Hamilton than they are in Toronto. Of course, what you’ll pay for property in the city will depend on the neighbourhood and type of home you’re seeking. That said, average prices tend to sit somewhere between $500K and $600K for single-family homes. For condos, they’re closer to the $300K mark.

While you’ll also find a wide range of price points in Toronto, many home buyers are able to find comparable homes for several hundred-thousand dollars less in Hamilton. Both cities offer a diverse selection of housing types, from pre-war houses to sleek modern condos and everything in between.

Are you ready to learn more about moving to Hamilton? We have the local market knowledge and experience to help. Contact us to discuss your needs today.

Thinking about moving to Burlington?

Our experts at Woolcott Real Estate don’t blame you! There are so many life-changing reasons to live in this beautiful and quaint waterfront city. Burlington lands right in the middle of vibrant city life and rural country living, providing residents with a well-balanced lifestyle. We’re going to walk you through some note-worthy things to know about Burlington, especially if you’re planning to move there, courtesy of our friends at Blue Whale, the friendliest moving company we’ve had the pleasure of knowing.

1. Family-Friendly Neighbourhoods

Burlington offers a balanced combination of urban fun and quiet family living. The downtown core has its fair share of restaurants, nightlife, and various activities, with many chain restaurants, malls and local businesses stemming through the city. Weaving through the main streets are many quiet, residential neighbourhoods that are home to families, retirees, young professionals and everyone else in between.

If you have a family or are planning to start one soon, Burlington can provide the perfect home for you to grow. With many elementary and secondary schools, your children will have a plethora of opportunities when it comes to education. Our experts at Woolcott Real Estate can help you find the perfect home for you and your growing family, and at the right price too!

Burlington is home to some exciting new developments! Read our blog to see our top 6 new Burlington condo developments here.

2. Waterfront, Parks & Recreation

Burlington has a beautiful and spacious waterfront, right along Lake Ontario. Directly between Hamilton and Oakville, the waterfront stretches along the most southern and southeastern sides of Burlington. Spencer Smith Park is arguably the most popular lakefront entertainment area, complete with waterfront restaurants, parks for children, greenery, walkways and a boardwalk.

Other parks, waterfront areas and recreational hot spots include:

• LaSalle Park
• Paletta Lakefront Park
• Nelson Park
• Sherwood Forest Park
• Mount Nemo Conservation Area
• Lowville Park

If you’re looking for something fun to do with the family, why not check out the Royal Botanical Gardens (RBG)? Right on the cusp of the Hamilton-Burlington border, the RBG is home to beautiful gardens, wildlife, activities, events and more!

3. Malls & Amenities

Burlington is home to two malls: Mapleview Mall and Burlington Mall. These elite shopping centres bring some of the most popular and enticing retail stores to Burlington, including Sephora, Forever 21, H&M, The Bay, Indigo, Winners, and Apple, among many others!

Burlington offers residents a number of big-city amenities, including recreational swimming pools, hockey rinks, restaurants, banks, libraries, coffee shops, health and wellness centres, home and garden stores and so much more! For more information about the amenities available in Burlington, speak with one of our local realtors. They have a virtually unlimited wealth of information about living in bright and bold Burlington.

4. Festivals

Have you heard about the Sound of Music Festival?

It’s one of Burlington’s most popular festivals that takes place at Spencer Smith Park around the beginning of summer. Experience art and culture from resident artists, products and services from local businesses, food trucks, vendors and vibrant music.

Burlington also hosts an annual Ribfest and is right around the corner from neighbouring cities who host festivals, such as Supercrawl in Hamilton. Not to mention the many festivals that Toronto hosts, including the Toronto Jazz Festival, North by Northeast (NXNE), VELD, Digital Dreams, Caribana and Canadian Music Week.

We can’t count the number of reasons why Burlington is great, if you’re thinking about buying a home in Burlington, read some of our other resources here:

• Toronto Vs. Burlington: Where Should Home Be?
• 5 Top-Notch Schools in Burlington
• How to Spend the Perfect Day in Burlington

5. Travel

Enjoy easy and convenient access to many major GTA highways, including the 403, 401 and 407. Burlington also has three GO Transit stations, including Aldershot GO, Burlington GO, and Appleby GO, where travelers can board GO trains, GO buses and city buses. Burlington is within an hour of both Toronto Pearson International Airport and John C. Munro Hamilton International Airport if you plan to travel for business and/or leisure.

Houses for Sale in Burlington

Well, there you have it! Just about everything you need to know about Burlington if you’re thinking about moving there.

If you have any questions or inquiries about Burlington, please feel free to get in touch with the City of Burlington. On the other hand, if you’re looking for a real estate agent or Burlington realtors, contact our experts at Woolcott Real Estate.

In any real estate transaction, a smooth process and successful result are the goals. Unfortunately, it doesn’t always work out that way—even when there’s a legally binding contract in place. Although it’s far from the most common outcome, there are times when a buyer can’t live up to their obligations. When that happens, it’s important to know what you can do about it—whichever side of the transaction you’re on.

Here’s what sellers and buyers should know about real estate contract breaches…

How buyer contract breaches happen

There are many ways that a buyer can breach their purchase agreement. One of the most common occurs when their mortgage financing falls through, leaving them unable to afford their prospective home. Of course, a buyer who has included a financing condition in their offer will be protected under these circumstances.

In some cases, a buyer is unable to sell their property before closing. Again, under these circumstances, they may find themselves suddenly unable to afford their new home. There are many situations that could prevent buyers from fulfilling their contract requirements—but a bit of planning can help prevent this outcome.

Buying a home can be a complicated process with a lot of paperwork. Here are a few fundamentals you should learn about before taking the plunge:

• Should You Use the Same Agent to Sell and Buy a House?
• How to Win in a Multiple Offer Scenario
• 7 Amazing Benefits of Working with a Real Estate Agent

What sellers should know

When you accept a buyer’s bid, they’ll provide you with their earnest money deposit within 24 hours. This amount will be set out in their offer, but it’s typically around 5 per cent of their purchase price. If the buyer breaches your shared agreement, you may be able to walk away and hold onto this money. The circumstances under which you can do this will be specified in your contract (which is one of many reasons to ensure you fully understand what you’re signing).

If you believe you’re entitled to the deposit and the buyer disagrees, you have the option of taking legal action. Depending on the situation, you may also be able to sue a purchaser who breaches your contract for damages. An experienced real estate lawyer can help you understand what this entails.

Of course, legal action should be a last resort. Your best bet is to maximize the chances that any deal you strike will close smoothly. To help ensure that happens, due diligence is key—and it could help keep you out of a sticky situation.

Recently, we’ve seen scenarios where buyers make firm offers on multiple properties. They’re obligated to drop off their deposit cheques within 24 hours—but only do so for one of the home they’ve bid on. No seller wants to find themselves on the losing end of a situation like this (especially since pursuing legal action isn’t always worthwhile). Fortunately, an experienced listing agent can help you look out for red flags and take the right precautions.

Looking for more resources for sellers? Check out some of these blogs about how to sell your home:

• What’s Your House Really Worth?
• Minor Upgrades, Maximum Results
• Our Full-Service Real Estate Team’s Guide to Marketing Your Home

What buyers should know

Needless to say, if you breach your real estate contract, you may not get your deposit back. It can be a hard pill to swallow. For this reason—and because it’s the right thing to do—you should only enter into a real estate contract in good faith.

Know that the home you’re bidding on is the one you want. Carefully select the conditions you want to include (if any). For example, a financing condition will allow you to avoid losing your deposit if your mortgage falls through. Lastly, understand the consequences of defaulting on your purchase—and be sure to ask your agent for clarity when need be.

Of course, while it’s less common, there are also circumstances where sellers breach real estate contracts. If this happens, you’ll very likely be able to get your deposit back. There may be other legal remedies available to help you recoup expenses—and, in some cases, compel the seller to go through with your original agreement.

Ready to buy or sell your next home? We’ll help you tackle every detail—and ensure you know what to expect. Get in touch to get started!