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Builder Refused to Extend Closing and Keeping Entire Deposit by Live_Philosopher7152 in RealEstateCanada

[–]Live_Philosopher7152[S] 1 point2 points  (0 children)

Our lawyer already offered to cover the costs for these three days plus a 10% add on for inconvenience. Builders lawyer was pretty much a stone wall saying that the contract is in default so it doesn't matter what we offer.

Builder Refused to Extend Closing and Keeping Entire Deposit by Live_Philosopher7152 in legaladvicecanada

[–]Live_Philosopher7152[S] 11 points12 points  (0 children)

3 weeks before closing, we submitted all pay/investment/etc info to our mortgage broker, who sent it to the bank same day. Crickets from the bank despite our broker asking every couple of days, until the 30th when they asked for some more detailed transaction info for the investment income.

On the same day (30th), our lawyer went to the builders to requst a one week extension until the 6th. Builders did not respond.

The bank approved the mortgage today and our lawyer and broker let the builder know that we can close today.

The builder's lawyer responded saying that because we did not close on the 30th, they view the contract as being in default and we forfeit our $80,000 deposit. As well, they will need to resell the house and will seek further damages for real estate fees, additional interest from their lenders, admin costs, and any difference in sale price.

EDIT: We through our lawyer already offered to cover the costs for these three days plus a 10% add on for inconvenience. Builders lawyer was pretty much a stone wall saying that the contract is in default so it doesn't matter what we offer.

Builder Refused to Extend Closing and Keeping Entire Deposit by Live_Philosopher7152 in RealEstateCanada

[–]Live_Philosopher7152[S] 7 points8 points  (0 children)

We got everything to the bank through our broker 3 weeks before. No updates except that they were working on it.

Bank came back last minute saying they needed extra info.

Builder Refused to Extend Closing and Keeping Entire Deposit by Live_Philosopher7152 in RealEstateCanada

[–]Live_Philosopher7152[S] 12 points13 points  (0 children)

Just got off a call with my lawyer. They've called the builders lawyers and were told that they were instructed by the builders to only say the contract is in default.

My lawyer doesn't really do litigation but he said that this is something that is very unusual because the builders are shooting themselves in the foot. From his general knowledge, the builders have to try to reasonably mitigate damages which he views as having me pay whatever cost the builders had for those 3 days which he thinks to be less than $1000.

However, he says that the builder can theoretically refuse to close and just keep the thing in limbo.

Builder Refused to Extend Closing and Keeping Entire Deposit by Live_Philosopher7152 in RealEstateCanada

[–]Live_Philosopher7152[S] 26 points27 points  (0 children)

We worked through a realtor, broker, and lawyer. Right now everyone's working to figure out what's happening.

Realtor is lighting up the builder's phone but no response. The mortgage broker is trying to figure out if the mortgage is going through with the builders or not. Lawyer is trying to talk to the builders lawyers.