Real Estate Law. Real-World Lessons.

Every week, Ontario courts deliver decisions that reshape how real estate deals play out - impacting your closings, commissions, and client relationships. But who has time to sift through 50+ pages of legalese?

We do.

Clause & Effect breaks down Ontario’s biggest real estate cases into clear, practical takeaways for realtors, mortgage advisors, and investors. No fluff. No Latin. Just sharp lessons you can actually use.

Let’s dive in!

What happens when a licensed realtor signs an APS he never intends to close - just to take a competing unit off the market?

Can the seller still recover damages and legal costs?

In Aliasi-Sini v. Arora, the court sent a strong message: brokers who abuse their license for personal gain will pay the price.

The Case: A Fake Offer, A Real Motive

In November 2022, seller Izhak Aliasi-Sini agreed to sell his North York condo for $2,350,000 to Samir Arora, a licensed realtor and principal of Equinox Arora Realty. The APS called for a $50,000 deposit, another $50,000 later, and a January 31, 2023 closing.

Arora never paid a dime.

Izhak tried to salvage the deal. In January, they signed an Amended APS with smaller staged deposits and a March closing.

Still, Arora paid nothing.

Why did he even sign? According to the court, Arora entered into the deal in bad faith — just to have Izhak’s unit marked “sold” so that he could sell his own unit across the hall.

Izhak ultimately sold to someone else for $510,000 less and sued Arora and his brokerage.

The Court Showdown: Bad Faith, Broker Misconduct, and a Pattern of Abuse

The plaintiff argued:

• Arora acted in bad faith, signing deals he knew he couldn’t close 

• The goal was to take Izhak’s listing off the market to boost Arora’s own sale 

• Equinox and Arora abused their status as broker and co-operating brokerage 

• Izhak reasonably relied on Arora’s brokerage involvement and credentials 

The defendants didn’t respond - they were noted in default. But the court still reviewed the facts carefully before granting judgment

The Decision: Realtor Misconduct — Buyer in Breach, Damages Awarded

Justice Merritt found:

• Liability was clear: Arora never intended to close, never paid deposits, and misused his brokerage position 

• The resale was properly handled: Izhak made reasonable efforts to mitigate, listing the property multiple times and adjusting price based on market feedback 

• Equinox was also liable: As the brokerage of record, it was tied to Arora’s conduct 

Key Takeaways (Without the Legalese)

1/ Punitive damages are rare - but bad faith will trigger them.

The court was blunt: Arora’s actions were outrageous.

Lesson: Misusing an APS to manipulate market dynamics can carry serious legal and financial consequences.

2/ Efforts to resell matter - especially in damages claims.

Izhak’s step-by-step price reductions showed the court he tried to mitigate.

Lesson: If a deal collapses, list quickly, document marketing efforts, and follow professional advice.

Questions or advice needed on your next closing? Reach out at [email protected] or call 519-997-3775.

Solid contracts ensure seamless closings.

Until next time.

-Christian