Condo Sale Fell Through 2 days before notary signing. What can I do?

Hello everyone,

I'm in a challenging situation with the sale of my condo in Quebec, and I’d appreciate some advice. Here’s a brief overview:

I accepted a buyer’s offer to purchase my condo, contingent upon them securing financing. We received final approval for a mortgage from Scotiabank on December 23, 2024. With assurance that the sale would proceed, I moved forward with purchasing a new home and finalized all necessary preparations for the move.

However, just two days before the scheduled notary date, on January 28, 2025, I received a notice from Scotiabank stating that the buyer's mortgage application had actually been denied due to their total debt servicing ratios not meeting the bank's requirements. This abrupt withdrawal left me with significant financial burdens as I now have to maintain the unsold property while also managing my new home expenses.

A lawyer advised me to obtain confirmation of the buyer's withdrawal in writing, which could be useful for potential recourse. Meanwhile, my real estate agent has indicated we could start seeking other buyers.

I’m wondering if there’s any avenue to seek compensation for these unexpected expenses, whether from the buyer or even the bank, and how best to proceed. Any insights or advice would be greatly appreciated.

Thank you in advance!