A buyer walking away from a firm deal can be very costly for them. Here is what happens to the deposit, and the seller's further claim.

Once an agreement of purchase and sale is firm (any conditions have been met or waived), a buyer who fails to close is in breach of contract.
The seller can usually keep the deposit and sue the buyer for further losses, such as a lower resale price and extra carrying costs. Sellers must try to resell at a reasonable price to keep their losses down.

If the seller resells for less, they can claim the difference, plus reasonable costs such as:
The deposit is credited against those damages.
The seller must make reasonable efforts to resell, for example by relisting promptly at a market price.
If a seller fails to close, the buyer can also sue, and sometimes ask the court to order the sale (specific performance).
Buying, selling and title matters need a real estate lawyer. NEO can help with related money disputes in Small Claims Court and refer you for the rest. Call 647-200-3526 or toll-free 888-519-2435, email info@neolegalservices.com, or book a free consultation.
Read next: Joint Tenancy or Tenancy in Common? How You Own Property Together
General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.
Photos from Unsplash: black framed eyeglasses on white book page · Hands holding a pen and signing a formal document on a dark surface.
This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
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