What happens if the seller leaves garbage or damage in the house on closing day in Ottawa?

Getting the keys to your new home in Ottawa should be a joyful moment. 🏠 Unfortunately, some buyers arrive at their new property only to find that the seller has left piles of garbage in the basement, ripped appliances out of the wall, or caused severe damage while moving their furniture. Discovering a mess on closing day is one of the most stressful situations a homebuyer can face under Ontario real estate law.

The fundamental rule in Ontario real estate is that a buyer is entitled to receive the property in the same condition it was in when the Agreement of Purchase and Sale was signed. Normal wear and tear is expected, but malicious damage or leaving behind hazardous waste is a breach of contract. Knowing how to handle this quickly with your real estate lawyer is crucial to avoid paying out of pocket for someone else’s mess.

Step-by-Step Process for Handling Closing Day Damage

Timing is everything. Once the funds are transferred and the keys are released, getting money back from a seller becomes significantly harder. ⏰ Here is how to protect yourself.

Step 1: The Vital Final Walkthrough

Never skip your final buyer’s visit. Your real estate contract should include a clause allowing you to inspect the property 24 to 48 hours before the official closing day. Walk through the home in Kanata, Gloucester, or wherever it is located, and check every room. Test the appliances, flush the toilets, and check the garage for abandoned junk. Take clear, timestamped photos of any damage or garbage.

Step 2: Immediate Legal Notification

If you find a major issue, call your Ottawa real estate lawyer immediately. 📞 Do not wait until the day of closing. Your lawyer will immediately contact the seller’s lawyer in writing, providing the photographic evidence and stating that the seller is in breach of the contract’s “broom swept condition” clause.

Step 3: Negotiating a Holdback

The best solution is a legal mechanism called a “holdback.” Your lawyer and the seller’s lawyer will agree to hold a specific amount of the purchase money (for example, $3,000 CAD) in the seller’s lawyer’s trust account. The deal closes, you get the keys, and the seller has a set time (e.g., 7 days) to fix the damage or remove the garbage. If they fail, that held-back money is released directly to you to cover your repair or disposal costs.

How Much Does it Cost in Ottawa?

Dealing with post-closing issues can result in unexpected expenses. 💰

• Holdback Amounts: Typically range from $1,000 to $5,000+ CAD, depending on the severity of the damage or the cost of renting a disposal bin in Ottawa.
• Junk Removal Services: Hiring a professional Ottawa junk removal company to clear out an abandoned basement usually costs between $300 and $800 CAD.
• Small Claims Court: If the deal has closed and the seller refuses to pay, filing a claim at the Ottawa Small Claims Court on Elgin Street costs exactly $108 CAD in government filing fees.

How Long Does the Process Take?

If caught during the final walkthrough, a holdback agreement can be negotiated by the lawyers in a matter of hours to ensure the deal still closes on time. 📅 However, if you only discover the garbage or broken appliances after you get the keys, and the seller’s lawyer has already released the funds to the seller, you must resort to the court system. Suing a seller in Ontario Small Claims Court can take anywhere from six to twelve months to reach a settlement conference or trial.

Frequently Asked Questions (FAQ)

Author: lawyerinfo.ca