Merovitz Potechin LLP
Menu Contact

The Referred to Law Firm

877-612-1123

Does a Seller Have to Wait for a Better Market to Sell their Property in Order to Mitigate Their Damages Where the Buyer has Failed to Close?

MP Blog Photos

In Briscoe-Montgomery v. Kelly, 2014 CarswellOnt 9707 (S.C.J.), the plaintiffs sold their hobby farm to the defendant for the sum of $458,000.  The closing was scheduled for September 14, 2012.  The defendant failed to close because of lack of financing.  The plaintiffs then immediately relisted the home for sale at a price of $449,000.  They were unable to sell their property in September, October and November.  On the advice of their real estate agent, the plaintiffs reduced their selling price to $429,000.  They ultimately accepted an offer at $415,000 in January 2013 and the sale closed on March 1, 2013.

The defendant alleged that the plaintiffs could have obtained a higher selling price by waiting to relist their property the following spring since it is generally better to sell in the spring.  As a result, the defendant argued that the plaintiffs failed to mitigate their damages.

The court held that the plaintiffs did not fail to mitigate their damages by not waiting until the spring to relist their property just because it is generally better to sell in the spring. It was reasonable for the plaintiffs to promptly return their property to the market and to accept the first reasonable offer that they received.

Email us for a response

Request A Consultation

Request A Free Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an lawyer-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Merovitz Potechin LLP
300-1565 Carling Avenue
Ottawa, ON K1Z 8R1

Toll Free: 877-612-1123
Ottawa Law Office Map