What Happens If a Seller Leaves Damage Behind Before Closing in Ontario?

Buying a home in Ontario is a major financial and legal commitment. By the time closing approaches, most buyers are focused on moving arrangements, mortgage funding, insurance, and getting the keys. However, one issue that can create serious stress near the end of a transaction is discovering that the seller has left damage behind before closing.

This may involve broken fixtures, damaged walls, removed items that were supposed to stay, water damage, missing appliances, careless moving damage, or a property that is not in the condition the buyer expected. When this happens, buyers often wonder whether they have to accept the property as-is, whether they can delay closing, or whether they have legal remedies.

At Mayfair Law Group, we help buyers and sellers across Ontario navigate real estate closing issues with clarity and practical legal advice. If damage is discovered before closing, the next steps depend on the Agreement of Purchase and Sale, the type of damage, the evidence available, and whether the issue affects the seller’s ability to complete the transaction properly.

The Agreement of Purchase and Sale Matters

The first place to look is the Agreement of Purchase and Sale, often called the APS. This contract sets out the rights and obligations of both the buyer and the seller. It may include clauses about the condition of the property, included fixtures and chattels, access for inspections, vacant possession, and what must happen before closing.

In many residential transactions, the buyer expects the property to be in substantially the same condition on closing as it was when the offer was accepted, except for normal wear and tear. If the seller causes damage while moving out, removes items that were included in the agreement, or fails to maintain the property before closing, the buyer may have grounds to raise the issue.

However, not every problem gives a buyer the right to refuse to close. Real estate contracts are legally binding, and failing to close without proper legal grounds can expose a buyer to serious consequences. That is why legal advice is important before making decisions based on damage discovered shortly before closing.

Common Types of Damage Found Before Closing

Damage before closing can take many forms. Some issues are minor and can be resolved through repair or compensation, while others may be more serious.

Buyers may discover holes in walls after mounted televisions are removed, scratched floors from moving furniture, broken doors, damaged countertops, missing light fixtures, cracked windows, appliance damage, plumbing leaks, or garbage and debris left behind. In some cases, there may be more significant damage such as flooding, fire damage, roof leaks, or vandalism before the transaction is completed.

There can also be disputes over what counts as damage. A seller may argue that an issue already existed or that it is ordinary wear and tear. A buyer may believe the condition changed significantly after the offer was accepted. These disputes often come down to evidence and the wording of the APS.

Fixtures, Chattels, and Removed Items

One common source of conflict is the difference between fixtures and chattels. Fixtures are generally items attached to the property, such as built-in shelving, light fixtures, bathroom mirrors, or certain built-in appliances. Chattels are movable items, such as furniture or appliances, unless they are specifically included in the agreement.

If the APS states that certain appliances, window coverings, light fixtures, or other items are included in the sale, the seller is generally expected to leave those items behind in the condition required by the agreement. If the seller removes them, replaces them with lower-quality items, or damages the property while removing them, the buyer may have a valid concern.

This is why buyers should ensure that important items are clearly listed in the APS. Vague assumptions can create avoidable disputes. If a buyer expects something to stay with the property, it should be written into the agreement.

Why the Final Walkthrough Is Important

A final walkthrough can be very helpful before closing. It allows the buyer to confirm that the property is still in acceptable condition, that included items remain in place, and that no obvious damage has occurred since the offer was accepted.

Not every APS automatically gives a buyer unlimited access before closing, so any right to revisit the property should be included in the agreement. When possible, buyers should use the final visit to take photos, test appliances if permitted, check for visible damage, confirm that agreed items remain, and note any concerns right away.

If damage is discovered during a walkthrough, the buyer should immediately contact their real estate lawyer and real estate agent. Timing matters. The closer the issue arises to closing, the more urgent it becomes to determine whether the matter can be resolved before funds are released and title is transferred.

Can a Buyer Refuse to Close Because of Damage?

This depends on the seriousness of the damage and the terms of the APS. Minor damage may not justify refusing to close. A buyer who refuses to close over a relatively small issue may risk being treated as the party in default.

More serious damage may create different legal considerations. If the property has been substantially damaged or is no longer in the condition required by the agreement, the buyer may have stronger options. In some cases, the parties may negotiate a repair, price adjustment, holdback, credit, or other solution.

A holdback is an amount of money held back from the seller’s closing proceeds until the issue is resolved. However, a holdback generally requires agreement between the parties and their lawyers. A buyer should not assume they can unilaterally deduct money from the purchase price without proper legal support.

What If the Seller Agrees to Fix the Damage?

If the seller agrees to repair the damage before closing, the agreement should be documented clearly. The buyer should know what repairs will be completed, who will perform them, when they will be completed, and whether proof of repair will be provided.

For larger repairs, buyers should be cautious about vague promises. A rushed repair may not fully address the issue, especially if the damage involves water, electrical systems, structural concerns, or hidden problems. In some situations, it may be better to negotiate a financial adjustment or holdback rather than rely on last-minute repairs.

The right approach depends on the nature of the damage and how close the parties are to closing.

What Evidence Should Buyers Gather?

Evidence is important in any dispute about property damage before closing. Buyers should keep copies of the APS, listing photos, inspection reports, walkthrough photos, videos, emails, text messages, and any communications with the seller or real estate representatives.

Photos from the original listing can be especially useful if they show the condition of floors, walls, fixtures, appliances, or other areas before the damage occurred. Home inspection photos may also help show what was present and intact earlier in the transaction.

Buyers should avoid making emotional demands or threatening not to close before speaking with their lawyer. A calm, documented approach is usually more effective and helps preserve legal options.

What Can Sellers Do to Avoid Disputes?

Sellers should take care when moving out and ensure the property is left in the condition required by the APS. If accidental damage occurs, it is usually better to disclose the issue promptly rather than leave the buyer to discover it at the final walkthrough or after closing.

Sellers should also be clear about what is included or excluded from the sale. If they plan to remove a fixture, replace an item, or take something that may appear attached to the property, this should be addressed in the agreement from the beginning.

Good communication and proper documentation can help avoid last-minute closing problems.

Why Legal Advice Matters Before Closing

Damage discovered before closing can quickly become a legal and financial issue. Buyers may feel pressure to close despite concerns, while sellers may feel accused of causing problems they believe are minor or pre-existing. Real estate agents can help with communication, but legal rights and obligations should be reviewed by a lawyer.

A real estate lawyer can review the APS, assess the seriousness of the damage, communicate with the other lawyer, request repairs or compensation, negotiate a holdback, and advise whether the issue affects closing. Getting advice early can prevent a small dispute from becoming a costly legal problem.

Speak With Mayfair Law Group About Real Estate Closing Issues in Ontario

If a seller leaves damage behind before closing, it is important to act quickly and carefully. The right response depends on the agreement, the condition of the property, the type of damage, and the available evidence.

At Mayfair Law Group, we help Ontario buyers and sellers navigate real estate transactions, closing issues, and last-minute disputes with practical legal guidance. If you are concerned about property damage before closing, our team can review your situation, explain your options, and help protect your interests.

Contact Mayfair Law Group today to speak with an Ontario real estate lawyer before your closing date.

FAQ

What should I do if I find damage during the final walkthrough?

Take photos and videos, document the issue, avoid making threats or assumptions, and contact your real estate lawyer immediately. Your lawyer can review the Agreement of Purchase and Sale and advise on the best next steps.

Can I refuse to close if the seller damaged the property?

It depends on the seriousness of the damage and the terms of the agreement. Refusing to close without proper legal grounds can be risky, so you should speak with a real estate lawyer before taking that position.

Can money be held back from the seller on closing?

A holdback may be possible if both parties agree. It is usually negotiated by the lawyers and should be documented clearly. Buyers should not assume they can deduct money from the purchase price without legal agreement.

What if the seller removed something that was supposed to stay?

If the item was included in the Agreement of Purchase and Sale, the buyer may have a valid claim. This can involve appliances, light fixtures, window coverings, or other items specifically listed in the agreement.

Does normal wear and tear count as damage?

Normal wear and tear is usually treated differently from new or significant damage. The issue is whether the property’s condition changed in a meaningful way after the agreement was signed or whether the seller failed to meet their contractual obligations.