When a purchaser of a real estate property fails to close and the vendor takes reasonable steps to sell the property at arm’s length, the measure of damages is usually the difference between the contract price and the resale price. However, as in Eyelet Investments, this is not always the case. A vendor of a pre-construction house has an obligation to mitigate their damages after a failed closing of the purchase agreement. If a purchaser intends to challenge the mitigation efforts and that the vendor failed to mitigate, it is the purchaser’s burden to prove the failure. Summary Judgment motion in Eyelet Investments Corp. v. Lin Zhou, 2025 ONSC 4434 In Eyelet Investments Corp. v. Lin Zhou, 2025 ONSC 4434 (CanLII), the purchaser requested supporting evidence from the vendor of their efforts to mitigate, which the vendor could not provide. At summary judgment, the motion judge found an adverse … Read More