Would-be buyer ordered to pay the difference after house ultimately sells for 28% less
The B.C. Supreme Court has ordered a buyer who walked away from a Surrey, B.C., real estate deal last summer to pay the sellers more than $360,000, or six times his original deposit.
The ruling puts the would-be buyer on the hook for the difference between the contract he signed — for $1,260,000 — and what it eventually sold for after the homeowners failed to find another buyer to match the initial high offer.
The original deal was struck in May 2016, a month that saw record-breaking frenzy in the Vancouver-area real estate market.
The sellers, who were downsizing to a condo, accepted a no-subjects offer with a $60,000 deposit to buy their single-storey rancher in Surrey’s Newton neighbourhood, according to the court ruling.
But by the closing date, Sept. 1, 2016, the buyer walked away.
Court documents don’t say why the deal wasn’t completed, and the buyer’s lawyer won’t comment on his client’s reasons.
But that summer a key factor changed in Metro Vancouver’s real estate market: the B.C. government brought in a 15 per cent property transfer tax on foreign nationals buying real estate in the region, and the seller’s realtor blames that for the lower sale price.