So… imagine this. You finally find a buyer for your property after weeks (or months) of open houses, endless phone calls, and maybe even a few awkward lowball offers. You agree on the price, sign the paperwork, and breathe a long, overdue sigh of relief.

And then—boom—the buyer backs out. Just like that.
Frustrating? Oh, absolutely.

But here’s the part most sellers don’t realize: once that agreement is signed, it’s not just a friendly promise or a handshake moment. It’s a legally binding contract. And that means you do have rights if the buyer suddenly changes their mind.

This is where speaking with a Montreal real estate lawyer becomes incredibly valuable. They can explain what remedies are available, what compensation you may be entitled to, and what steps you can take to protect yourself from being left in the lurch. So let’s break it down—what actually happens when a buyer backs out, what the law says about it, and what you can realistically do next.

First off… can a buyer really walk away?

Technically, yes—but not without consequences. In Montreal, like anywhere in Quebec, a real estate purchase agreement is a legal document. Once both parties sign, they are bound by the terms in it. A buyer can only withdraw under certain legal conditions… for example, if a financing clause was not met, or if the inspection revealed serious hidden defects.

But if the buyer backs out for no valid reason, that is considered a breach of contract. And this is where things get interesting (and sometimes messy).

What happens when a buyer breaches the agreement?

When a buyer breaks the deal without a legitimate reason, you, as the seller, can pursue legal remedies. Usually, this comes down to two main options:

1. Keep the deposit (if there is one).
2. Sue for damages if you suffered financial loss.

Most real estate agreements include a deposit, which serves as a kind of security. If the buyer bails, that deposit can often be forfeited to you. But if your losses are more than the deposit—say you had to sell at a lower price later—you can actually take legal action to recover those damages.

And here is where having an experienced Montreal real estate lawyer really makes a difference. They can review your contract, calculate potential damages, and represent you if things move toward litigation.

Real-life example: when deals collapse

We have seen cases where sellers were left hanging after buyers suddenly changed their minds. One couple in Montreal lost months waiting for a buyer who simply decided they found a “better deal.” They ended up having to relist their property at a slower time of year—and the sale price dropped by almost $25,000. With the help of their lawyer, they were able to claim part of that loss from the buyer.

It is not about being aggressive… it is about being fair. You held up your end of the bargain, and the law recognizes that.

What can you do right away?

If a buyer backs out after signing, do not panic. Instead:

1. Review the agreement carefully. Look for any clauses that mention cancellation, deposits, or conditions.
2. Gather all communications. Emails, texts, and notes from your agent can be key evidence.
3. Contact a real estate lawyer. A quick consultation with a Montreal real estate lawyer can save you from a lot of stress and confusion.
4. Do not rush to resell immediately. Your lawyer may advise waiting before taking new offers, depending on your legal position.

Why having the right legal team matters

Real estate law in Quebec can be tricky. The rules about contracts, deposits, and damages are a little different here than in other provinces. That is why it helps to work with someone who knows the system inside out. Many of the top law firms in Montreal have dedicated real estate teams who deal with these exact situations every day.

A good lawyer will not just throw legal jargon at you—they will explain your options in plain language, negotiate with the buyer’s side if needed, and protect your interests if the matter goes to court.

The Bottom Line

A buyer backing out after signing can feel like the rug’s been pulled out from under you. But you are not powerless. With the right legal help, you can recover your losses and move forward confidently.

If you ever find yourself in that situation, do not wait. Reach out to a trusted Montreal real estate lawyer—someone who will fight for your rights and guide you through the process. Because sometimes, standing firm is the best way to close the deal… even when the deal has already fallen apart.