A buyer and seller have a firm Promise to Purchase for a property in Gatineau with a total purchase price of $400,000. On the agreed-upon closing date at the notary's office, the buyer only has $350,000 available to complete the purchase, stating they unexpectedly lost a portion of their down payment. The seller is present and ready to sign. What is the most appropriate action for the seller's real estate broker to advise her client?

Question: A buyer and seller have a firm Promise to Purchase for a property in Gatineau with a total purchase price of $400,000. On the agreed-upon closing date at the notary's office, the buyer only has $350,000 available to complete the purchase, stating they unexpectedly lost a portion of their down payment. The seller is present and ready to sign. What is the most appropriate action for the seller's real estate broker to advise her client?

Answer options: ✅ Advise the seller that the buyer is in default of their obligations under the Promise to Purchase, and the seller has legal recourses, such as claiming damages, keeping the deposit, or suing for specific performance, and should consult with the notary and potentially legal counsel.

• Suggest the seller accept the $350,000 and offer a private loan for the remaining $50,000 to complete the transaction.
• Recommend the seller agree to extend the closing date indefinitely until the buyer can secure the full amount.
• Inform the seller that they are legally obligated to sell for the amount the buyer has, as part of a good-faith negotiation.

Correct answer: Advise the seller that the buyer is in default of their obligations under the Promise to Purchase, and the seller has legal recourses, such as claiming damages, keeping the deposit, or suing for specific performance, and should consult with the notary and potentially legal counsel.

Explanation: When a buyer fails to fulfill their fundamental obligation (paying the purchase price) on the closing date, they are in default of the Promise to Purchase (Civil Code of Québec, Articles 1590, 1710). The seller's broker must advise the seller of their potential recourses and recommend consulting legal counsel and the notary, as per Article 10 of the Regulation respecting brokerage requirements, professional ethics of brokers and the advertising of services.