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  • Writer's pictureNatalia Werhun-Popowicz

Failing to deliver a deposit after an offer is accepted may result in a claim against the buyer

In the recent case of Gagliardi v. Al-Karawi, 2023 ONSC 6853, the buyer accepted the sellers’ counter-offer but backed away from the deal shortly thereafter without paying the agreed upon deposit of $40,000. The sellers subsequently sold the property to another buyer for $12,473 less than the purchase price under the original Agreement of Purchase and Sale, and brought a summary judgement against the defendant buyer seeking damages for loss and forfeiture of the deposit - even though the deposit was never actually paid. 


Ultimately, the defendant buyer was ordered to pay the $40,000 deposit plus interest and costs. 


Before submitting an offer on behalf of buyer clients, agents should always make sure that the buyers are aware of their obligations if the offer is accepted and that they may be held liable if they fail to deliver the deposit as agreed to in the accepted offer.


Werhun Law is a law firm located in Etobicoke serving the Greater Toronto Area. Werhun Law provides services primarily in residential and commercial real estate, mortgages, commercial leasing, and wills and estates. If you have any questions or are in need of legal services you can contact us at

The information in this post is for general informational purposes only. It does not constitute legal advice and does not create a solicitor-client relationship.


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