Anticipatory Breach in Ontario Real Estate: What Buyers and Sellers Need to Know

Anticipatory breach in Ontario real estate occurs when one party indicates they cannot close on the scheduled date set out in the agreement of purchase and sale. This situation most often arises on the buyer’s side, typically due to financing issues, and it has significant legal and financial consequences. When this happens, legal counsel for the breaching party will usually request an extension, but that request often comes with demands from the innocent party—such as covering utilities, property taxes, insurance, mortgage-related costs, and sometimes an additional non-refundable deposit.

If an extension is not granted, or if the breaching party fails to close again, the innocent party is entitled to mitigate their losses, commonly by relisting and reselling the property. In these circumstances, sellers frequently seek damages for the difference between the original purchase price and the resale price, particularly where the resale results in a shortfall caused by the breach.

Real estate lawyer Jaimin Panesar explains how Ontario courts address anticipatory breach in real estate transactions, what options are available to both buyers and sellers, and how damages are calculated when deals fall through.

Whitby real estate lawyer Jaimin Panesar, of Devry Smith Frank LLP and Woitzik Polsinelli LLP, focuses on residential and commercial real estate transactions, as well as estate planning and administration. Jaimin brings a practical, detail-oriented approach to each matter, supporting clients through every stage of a transaction with clarity and confidence.

For legal advice when purchasing a condo unit, contact Jaimin at 289-220-3281 or [email protected].

Disclaimer: This video is not legal advice. Consult with a qualified legal professional for advice tailored to your circumstances.

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