A recent Ontario court case highlights the legal complexities surrounding real estate price abatements. The case, Zoleta v. Singh and RE/MAX Twin City Realty, involved a dispute where the purchaser attempted to demand a price reduction based on a lower appraisal value. The vendor refused, leading to a breakdown in the agreement and a subsequent sale at a lower price. The court ultimately ruled in favor of the vendor, finding no bad faith or obligation to renegotiate the terms.
The volatility of real estate values can cause anxiety among purchasers, sometimes causing them to re-think closing the deal. They might even seek a reduction in the purchase price, known as abatement, at the last minute.
The vendor even offered a closing extension if the purchaser paid an additional $50,000 deposit on top of the $50,000 already held in trust. In the meantime, the vendor advised the purchaser that they had relisted the property but had not entered into any new sale agreement. The court disagreed with the purchaser’s claims, finding “the vendor did not act in bad faith, nor had an obligation to agree to change the terms of the agreement.”
Real Estate Abatement Purchase Agreement Breach Of Contract Legal Dispute
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