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Ontario real estate · Court case explained

Mississauga Buyer Ordered to Pay Over $2.4 Million After a Failed Home Purchase

A firm offer to buy an Ontario home can create obligations far beyond the deposit. A Mississauga court case illustrates the potential cost of failing to close when a seller later resells for less.

Key takeaway: once an Ontario Agreement of Purchase and Sale becomes firm, a buyer generally cannot walk away without risking a breach-of-contract claim. Depending on the terms and proven losses, liability may exceed the deposit.

The original video is in Russian. This English companion explains the reported figures and the legal lesson from Menon v. Simpson, 2025 ONSC 6720.

What happened in the Mississauga transaction?

On May 13, 2023, the buyer agreed to purchase a home for $8,385,000. Despite repeated closing extensions, the buyer failed to complete the transaction by the final October 16, 2023 deadline. The seller subsequently resold the property for $6,550,000.

How did the judgment exceed $2.4 million?

$1,835,000Difference between the contract price and the eventual resale price

$550,000Carrying costs agreed upon by the parties

$20,693.85Court-awarded legal costs, in addition to interest

In its December 1, 2025 decision, the Ontario Superior Court ordered $2,385,000 in damages plus $20,693.85 in costs—a combined $2,405,693.85, before interest. This is a case-specific outcome, not a standard cancellation penalty.

Why did the court reject the buyer’s defence?

The buyer claimed the seller had not done enough to reduce the loss. The court found the seller relisted the home within about two weeks, made several price reductions and pursued marketing efforts. The buyer did not submit an appraisal or expert evidence showing those efforts were unreasonable. The court found the seller had reasonably mitigated the loss.

What should Ontario buyers do before making a firm offer?

Discuss financing with your lender or mortgage broker before committing.
Understand financing, inspection and other conditions, including their deadlines and when they are waived or fulfilled.
Do not assume the deposit is the maximum possible loss if the purchase fails to close.
If closing is in jeopardy, consult an Ontario real estate lawyer immediately rather than waiting until the closing date.

Case source: Menon v. Simpson, 2025 ONSC 6720 — full court decision.

General information only; not legal or financial advice. Contract terms and the facts of each case determine the outcome. Consult a qualified Ontario real estate lawyer before signing, amending or terminating a purchase agreement.

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