The case in detail
What happened
A buyer agreed to purchase a home in Thornhill, Ontario and paid a $75,000 deposit, then failed to close. The seller resold the home for $160,000 less than the agreed price.
What the seller lost
On top of the resale shortfall, the seller paid $56,291.43 more in mortgage interest, renewal penalties, repairs and other costs while the home sat unsold. The buyer's $75,000 deposit stayed in trust until the court ordered its release.
What the court decided
The court awarded the seller $218,138.93 in damages.
How Home Closing Insurance could have helped
- All plans: legal costs to pursue the buyer, and an advance of the deposit instead of waiting for the court, if the claim is covered.
- Essentials Plus and up: mortgage interest and other carrying costs, plus relisting costs, within the $50,000 combined limit.
- Comprehensive: the resale shortfall, up to the Home Value Protection limit of $100,000, $150,000 or $200,000. A $160,000 shortfall would exceed the two lower limits.
$1,311.12A Comprehensive policy with $200,000 Home Value Protection on a home valued $1.25M–$2.5M, including the policy fee and tax. Under 1% of the damages in this case.
| Loss | Amount |
|---|---|
| Resale shortfall (lower second sale price) | $160,000.00 |
| Additional mortgage interest while unsold | $19,223.50 |
| Mortgage renewal penalties and charges | $13,088.27 |
| Repairs and preparation for resale | $10,124.49 |
| Other awarded expenses | $13,855.17 |
| Total | $218,138.93 |
Based on a public court decision. Example only. Coverage depends on your policy, limits, exclusions and conditions, and would not necessarily cover every amount awarded.
