In the current chaotic residential real estate market, buyers are frequently submitting offers well in excess of either the listing price or the realistic market value.

But transactions like this sometimes go off the rails when the buyers are unable to obtain financing or sell their existing houses. The courts, in an increasing number of recently reported decisions, have shown little empathy for defaulting buyers.

This was the case in a recent decision involving a home on East Humber Dr., in King City, Ont. In March, 2017, Brian and Pamela Prowse decided to list the house for sale.

On the day it was listed for $2.6 million, Samir Noroozi presented an offer at $2.45 million, with staged deposits of $20,000, $80,000 and two final deposits of $50,000 each. The offer was accepted and the first deposit was paid.

But Noroozi breached the agreement when he failed to pay the second deposit.

Between April, 2017, and March, 2019, further negotiations led to what a judge later called “a bewildering series of events.” Further deposits totalling $120,000 were made. As well, there were numerous extensions of closing and amendments to the agreement.

For the full report continue to read on: TheStar.com