06/11/2026
One in three Ontario homes purchased during the 2022 market peak reportedly resold at a loss.
As REALTORS®️, this is a reminder to look beyond the list price and understand your seller’s financial position before going to market.
A title search is a great start, but remember: what’s registered on title is not always what is actually owed. Mortgage balances, penalties, interest, private loans, and other charges can quickly impact a seller’s net proceeds.
If a shortfall appears possible, have the conversation early and consider speaking with lenders before listing. In many cases, a successful MLS sale is a far better outcome than a lengthy and costly Power of Sale process.
Most importantly, ensure there is a realistic path for all parties to be paid on closing, including lenders, lawyers, and both brokerages. A shortfall on closing could cost everyone and ultimately could become the responsibility of the listing brokerage to ensure the coop brokerage is fully paid.
The best time to identify a shortfall is before the property hits the market, not after an offer is accepted.
