ARTICLE · 17 FEBRUARY 2026

Collapsed Or Collapsing Real Estate Sales: What Went Wrong And What Comes Next

Watson Goepel LLP

Explore more from Watson Goepel LLP

Real estate transactions can fall apart even after a contract is signed. Collapsed or collapsing sales are becoming increasingly common, often leading to financial loss, legal disputes...

CanadaReal Estate and Construction

Author LinkedIn connections

Real estate transactions can fall apart even after a contract is signed. Collapsed or collapsing sales are becoming increasingly common, often leading to financial loss, legal disputes, and missed opportunities for both buyers and sellers. Understanding why these deals fail—and how early legal planning can reduce risk—is essential in today's volatile real estate market.

A real estate sale can fall apart even after a contract is signed. These collapsed or collapsing real estate transactions are increasingly common and often result in financial loss, legal disputes, and missed opportunities for both buyers and sellers.

When a real estate deal falls through, understanding the legal risks early can prevent a manageable problem from becoming significantly worse.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

Lots Volumétriques, Cadastre Vertical Et Conversion Des Immeubles Locatifs : Une Alternative À La Copropriété Divise?

CanadaReal Estate and Construction

Volumetric Lots, Vertical Cadastre, And The Conversion Of Rental Buildings: An Alternative To Divided Co-ownership?

CanadaReal Estate and Construction

Is Your Construction Manager Your Fiduciary?

CanadaReal Estate and Construction

Buying Or Selling A Tenanted Property: What You Need To Know (Video)

CanadaReal Estate and Construction

Devry Smith Frank LLP

Mortgage Delayed On Closing Day? Risks For Ontario Homebuyers (Video)

CanadaReal Estate and Construction

Devry Smith Frank LLP

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Real Estate and Construction
- Real Estate

Related Comparative Guides

Comparative Guide

Construction

Comparative Guide

Real Estate

See more popular content from

Real Estate and Construction

Bill 20: Prompt Payment Legislation Introduced In British Columbia

On October 7, the Government of British Columbia introduced Bill 20 in the B.C. legislature. Bill 20 implements long-anticipated reforms aimed at providing greater payment and cash-flow certainty for stakeholders...

CanadaReal Estate and Construction

Blake, Cassels & Graydon LLP

Canada Extends Ban On Foreign Home Buyers To 2027

The Government of Canada has announced a two-year extension to an existing ban on foreign ownership of Canadian housing.

CanadaReal Estate and Construction

Bennett Jones LLP

Social, Family, And Affordable Housing: Montréal’s New Real Estate Development Rules

Since April 1, 2021, residential projects of at least 450 m² (about 5 units or more) in Montréal have been subject to the By-law for a Diverse Metropolis (the BDM).

CanadaReal Estate and Construction

Borden Ladner Gervais LLP

No Personal Guarantee? Professionals May Still Be Personally Liable

Many professionals (accountants, engineers, lawyers, dentists and other health professionals) operate through professional corporations believing this structure protects their personal assets from business liabilities. A recent Alberta Court of King's Bench decision serves as a reminder that this assumption can be wrong, and costly.

CanadaReal Estate and Construction

Scott Venturo Rudakoff LLP

Tenant-Caused Property Damage In Ontario: How Landlords Can Claim Compensation

Discovering that your rental property has been damaged by a tenant can be a frustrating and costly experience. Landlords often wonder what their rights are and how they can legally recover the costs of repairs.

CanadaReal Estate and Construction

Ontario’s Mandatory Annual Holdback Release Starts In 2027: What Owners And Contractors Need To Know

Starting in 2027, all Ontario project owners with contracts entered into on or after January 1, 2026, and most owners with contracts dating back to July 1, 2018, must start releasing statutory holdback to their contractors on an annual basis. This requirement is the latest in a series of construction payment reforms under Ontario’s Construction Act. It replaces the traditional model of retaining holdback until substantial performance. Owners and contractors who fail to comply with the notice and payment timelines face exposure to interest claims, payment disputes, and adjudication proceedings.

CanadaReal Estate and Construction

REDMA Disclosure Obligations: When Can Presale Purchase Contracts Become Unenforceable?

In KingSett Mortgage Corporation v Lumina Eclipse Limited Partnership, 2026 BCSC 1598, the Supreme Court of British Columbia confirmed that a developer’s failure to disclose material facts...

CanadaReal Estate and Construction

McCarthy Tétrault

Show Me The Money – British Columbia Introduces Prompt Payment

On October 7, 2025, British Columbia introduced Bill 20 – 2025 Construction Prompt Payment Act. On November 27, 2025, Bill 20 received Royal Assent. Bill 20 however has not yet come into force.

CanadaReal Estate and Construction

Holdback Deficiencies And Mortgage Priority: Court Of Appeal For Ontario Clarifies S. 78(2) Of The Construction Act

The Court of Appeal for Ontario has resolved a critical uncertainty in construction law regarding how holdback deficiencies should be calculated when owners fail to retain statutory holdbacks. The decision addresses whether contractors who have already been paid can claim additional priority over construction mortgages, and establishes important boundaries to prevent double recovery while balancing the interests of all parties in the construction pyramid.

CanadaReal Estate and Construction

Aird & Berlis LLP

Bill 20: Prompt Payments, Fast-Tracked Dispute Resolution, And The End Of Shimco Liens

In early October 2025, the British Columbia provincial government introduced Bill 20: Construction Prompt Payment Act ("Bill 20") in an effort to streamline payments across the construction industry...

CanadaReal Estate and Construction

McCarthy Tétrault