Question regarding a broken contract

[Deelow]

First I will point out that the selling deal is taking place in SK, the buying deal is in AB.

I'm hoping someone here can help me with some advice. I'm also working with a lawyer but I'm curious to get some opinions on this situation.

I sold my house in March with a May 1 possession date. The buyer put down a 10K deposit. Shortly after selling my home I began the process of looking for a new home in a new city (work transfer). I found the home I want, also put down a 10K deposit and am slated to take possession May 6.

Early last week I went through the paperwork process as a seller with my lawyer. When we reached out to the buyer's lawyer we got some disturbing news. The buyers are in China and wouldn't be in Canada in time to take possession on May 1st. They are unreachable and there is no way to get the documents to them. They plan on being back in Canada May 5 or 6th.

Now I need the money from this transaction to fund the purchase of my new home. I purposely gave it a week between the closing of the deals thinking that would be plenty of time. I've explored bridge financing, but no lender will allow it unless my selling contract is amended with a new possession date, but it can't be because the buyers are unreachable in China and cannot sign any documents.

This has left me absolutely scrambling, I'm supposed to take possession in less than 48 hours and have no sign of the money. In Sask land title transfers take a couple days, so even if they sign on Tuesday, I'm probably looking at Thursday before the cash comes through. I am on the verge of losing this new house and the 10k deposit I've put down. I'm currently negotiating to buy myself some extra days before I take possession but they aren't thrilled about that. Additionally, all my belongs are on a moving truck and were scheduled to be delivered May 6. That won't be happening and I will be charged a minimum of $1000 for my stuff to be unloaded and stored in the warehouse. My girlfriend and I will also be forced to stay in a hotel between May 6th and the day this is resolved..if it's resolved.

So is there any recourse here? I know I can walk away from the deal and take their 10K, but if I do that I will have to re-list the house and will lose my new house. They have to pay be interest for every day they're late. Something in the range of $40 a day, not enough to even make a dent in the expenses I'm incurring. Do I have a right to go after them for other damages? Can I change my contract with them, say I want an extra $5000 or I walk with the deposit? Do I send a bill to their realtor (who by the way, didn't feel it was necessary to tell us they were in China)? Curious to get some professional opinions...

Thanks.

[Sliver]

Wow, that blows dude.

[photon]

Are the sellers of your new place that willing to have the deal fall through based on a few days? They may not be thrilled, but they're still choosing between waiting an extra few days or having the whole deal fall through and going back to the market. Even with an extra $10,000, that's a lot of hassle, assuming they'd even be able to get the same price. (Or of course maybe they think they can get a better price so are more than willing to let it fall through).

I was going to say maybe try and find a high interest short term lender, I remember having to do that once (it was actually my lender who gave us a personal loan), but that might be even more risky; if you get enough to close, but then the Chinese people actually disappear completely, then you'll have a place you still have to sell AND a loan shark.

[troutman]

Are they back in Canada today?

It they are in breach you can keep the deposit, and sue for damages. You may also renegotiate with them, and add some kind of a penalty on to the purchase price.

[Travis Munroe]

^ exactly what Troutman said. Technically your realtor should be helping you through much of this and in contact with your lawyer to come up with the best game plan for you.