Caivan (Renaud) Inc. (Plaintiff) filed a default judgment motion against Maroof Khan and Mujahid Khan (Defendants) for failing to close a real estate transaction.
The Plaintiff sought $101,382.10 in damages plus interests for the Defendants’ breach of the purchase agreement of a property in Ottawa.
Key Points:
The Defendants agreed to purchase a townhome for $739,936.99, including HST, but failed to close the deal, leading to the legal action.
Despite extensions and communications, the Defendants did not fulfill their closing obligations, resulting in the Plaintiff terminating the agreement and relisting the property.
The property was later sold for $600,000, lower than the original sale price.
The court awarded damages based on the shortfall between the contract price and the resale price, including additional costs incurred due to the breach.
Default judgment was granted in favor of the Plaintiff, affirming their efforts to mitigate damages and resale the property at fair market value.
Outcome:
The Plaintiff was awarded $101,382.10 plus prejudgment interest from August 24, 2023, and additional legal costs of $2,500, underlining the Defendants’ breach of contract and the financial losses incurred by the Plaintiff.
