Real estate transactions involve significant sums of money and complex legal obligations. When something goes wrong, the consequences can be severe. Here are the most common real estate disputes in Ontario and how they're resolved.
Failed Closings
When one party fails to complete on the agreed closing date, the consequences depend on who defaulted and why:
- Buyer fails to close: Seller may forfeit the deposit, resell the property, and sue for any additional losses (e.g., if the resale price is lower)
- Seller fails to close: Buyer may seek specific performance (court order to complete the sale), damages, or return of the deposit plus interest
Disclosure Issues
Sellers in Ontario must disclose known material latent defects — hidden problems that make the property unsafe or unfit for its intended use. Failure to disclose can result in:
- Damages for repair costs
- Rescission of the Agreement of Purchase and Sale
- Claims for misrepresentation against seller and their agent
Neighbour Disputes
Property line disputes, encroachments, and easement issues are common. Options include:
- Survey to establish boundaries
- Negotiated agreement or land swap
- Injunction to stop ongoing trespass or encroachment
- Quiet title application
Condominium Disputes
Disputes with condo corporations about maintenance, special assessments, or rule enforcement can be addressed through the Condominium Authority Tribunal (CAT) or the court.