Occasionally however, an unscrupulous vendor may receive a second higher or more favorable offer in the interim period between acceptance of the first offer and the closing date. Despite the fact that the first agreement constitutes a valid and binding contract, the vendor may simply attempt to ignore the first contract and attempt to proceed with a sale to the second purchaser on the basis of the second offer.

While there are remedies available in these circumstances to the initial purchaser, often the costs of enforcing the agreement are prohibitive, and the initial purchaser is in reality left with no other option but to continue the search for another home.

One inexpensive way in which a purchaser can significantly protect his interest in the lands to be purchased, pending actual closing, is by registration of a purchaser's lien against the title thereto.

Assuming that the purchase agreement has been properly completed, an interest in the lands in favor of the purchaser arises at that time, which can be protected by registration of a caveat against the title. Once the caveat has been registered, the purchaser's "security" is significantly increased, as it will be extremely difficult for a vendor to proceed with a sale to a subsequent purchaser in the face of the registered caveat on title to the home.

In one case in which I was involved, after accepting my client's offer, the vendor purported to accept a second significantly higher offer received later that same day. The vendor advised my client that he did not intend to proceed with the sale to my client, despite the contractual obligation to do so, and that he would be proceeding on the basis of the second offer, and refunding my client’s deposit.

Rather than giving up, however, my client filed a caveat against title, claiming a purchaser's lien thereagainst as a result of the interest he had obtained in the lands through his purchase agreement.

As the purchase agreement was valid and binding, the vendor was left with no choice but to complete the sale in accordance with the terms of the initial agreement.

In any situation where closing date is delayed, or where a purchaser of property simply wishes additional assurance that the purchase will be completed in accordance with the contract, the purchaser should discuss the possibility of a purchaser's lien caveat with his lawyer.