One For The Record Books!

I read an article today detailing the sale of the most expensive home in the world.
In 2008 a Russian billionaire, allegedly the wealthiest man in Russia entered into an agreement to purchase a villa on the French Riviera that was originally built for the late King Leopold II of the Belgians. The property was valued at $750 million U.S. which was the highest price ever paid for a residence anywhere in the world. The purchase agreement included a $53 million deposit. Subsequent to entering into the agreement, the buyer's fortunes like a lot of others was impacted by the global recession and he backed out of the deal. French law does not stipulate that a buyer's deposit needs to be refunded in the event the sale is aborted. The issue went to the courts and as expected, the courts awarded the deposit to the seller. Ouch! The seller, not needing the money plans to distribute the money amongst 10 charities.
In Ontario, aborted sales can become a complex issue. A seller may want to retain a buyer's deposit for a sale that was not completed however it's not always that easy. Should the buyer or seller wish to contest the aborted purchase in court is going to cost time and money. In the meantime, the property remains tied up with the seller unable to secure another sale unless a mutual release is signed by both parties and the buyer is unlikely to do so without getting their deposit refunded. It can become a tenuous situation with neither the seller nor the buyer winning. In the case outlined above, French law clearly favours the seller and in this case, 10 charities are the one that are going to come out on top of this aborted purchase.