A GUIDE FOR CANADIAN HOME SELLERS
Your Offer is Firm. Here's Why That Might Not Matter.
What most sellers don't know about buyer default, and the financial exposure that starts the moment your deal goes firm.
A "firm" offer isn't the guarantee most sellers think it is.
Every year, Canadian home sellers lose tens of thousands of dollars when buyers fail to close. Not because of fraud. Not because of bad luck. Because the system doesn't protect the seller the way most people assume it does.
The Risk Nobody Talks About
The gap between what sellers expect and what actually happens
scenario
A seller accepts a firm offer on their home for $925,000. They sign a purchase agreement on their next home for $870,000, schedule movers, and notify their kids' school. Three weeks before closing, the buyer's financing falls through. The deal collapses. The seller relists, eventually sells for $838,000, and spends four months carrying two mortgages. Total loss: $87,000+
This isn't rare. Buyers can still walk away from a firm offer. When they do, the financial damage lands entirely on the seller.
Lost financing
Refused to close
Failed to deliver funds
Requested extensions
Walked away entirely
And the deposit? It's held in trust. Recovering it can take months, sometimes over a year, if it happens at all. It rarely covers the actual losses.
10
Your window to act is exactly 10 days.
From the date your offer goes firm, you have 10 days to secure closing protection. After that, coverage is no longer available for your transaction.
What Buyer Default Actually Costs
THE NUMBERS MOST SELLERS DON'T SEE UNTIL IT'S TOO LATE
When a buyer defaults, the seller absorbs losses from multiple directions at once. Here's what a failed closing on a $750,000 home can look like:
EXPENSE
ESTIMATED COST
Carrying costs (3-6 months of mortgage, tax, insurance)
$12,000 - $24,000
Bridge financing or second mortgage
$3,000 - $8,000
Legal fees (pursuit of buyer + relist)
$5,000 - $15,000
Additional real estate commissions
$15,000 - $30,000
Equity loss on relist (5-12% lower sale price)
$37,500 - $90,000
Total potential exposure
$72,500 - $167,000
ASK YOURSELF
Can you absorb that financial exposure and still complete your next purchase?
68%
of sellers have already committed to their next home before closing
$0
amount of immediate financial protection most sellers carry
Explore Seller Protection Options
Learn how sellers protect themselves from these risks. Explore the solutions available to help safeguard your transaction and move forward with confidence.