09/30/2026
Thinking of possibly selling in the spring? This quick 1 minute is an important read to help you with important knowledge to make a stressful time a little less stressful-
Client A sold their home to Party B
Party B sold their home to Party C
Party C sold their home to Party D
All these transactions were set to close simultaneously, with the flow of money in this chain of events dependent on Party D's purchase of Party C's home.🏠
The primary issue was that Party D's lender had unmet conditions on the closing day, leading to the non-disbursement of funds and a breach of agreements in all the deals.
Additional costs 💲were incurred by all parties involved- extra legal fees, problems with lender funds that were advanced but not utilized, homes packed up for moving but no destination, and movers awaiting instructions. The delays caused uncertainties, such as where to sleep and whether movers could reschedule for the next day.🛏
The situation was exacerbated because it took Party D a week to secure mortgage funds, causing a domino effect on the entire chain of deals. Other parties faced increased expenses due to the breach.
At Mason Bennett Johncox, we have decades of experience in Real Estate transactions to help you and your family- we often advise clients to consider bridge financing for same-day closings, as the potential savings of a few hundred dollars may not outweigh the significant risks and costs associated with such delays.
~ Mason Bennett Johncox Lawyers
Brooklin 905-620-4499 & Port Perry 905-985-4141
www.mbjlawyers.com
Licensed in Ontario, Canada
