Here's what happened to me,I have a excavation/contracting business in northern ontaro.It was for sale and I had a buyer,the bank approved his loan and all that was left was for him to sigh the loan agreement.This was on a Friday at 2 pm and they dident have the papers ready for him and he was leaveing for 2 weeks to go out of town for a shut down in a mill,he's a welder by trade.He said he would get his wife to sign the papers the following Tuesday seeing has the mondat was labour day long week end and the bank would be closed.I went to the bank on Tuesday and no money in my acct,no biggy I think,it will be there on the next day, next day till no money.Buddy calls me on a Thursday and askes if I got the money ,I say no and he said he would call the bank and see what's up.He dident call back and then on the following Sunday I find out his wife has packed up and left him while he's out of town working:eek: .Someone finally gets a hold of him on Monday morning where he's working out of town and he drives back to town(5hr drive) to see what's going on.I see him the next day and tell him I'm sorry that his wife left him but I need to get this deal done,we've been waiting three weeks and I'm selling the business to get into another business,I need the money to start and the fellow I'm buying the business from is getting impatiant as I am to.There is 2 other people looking at this other business so time is the essence here.He said he will go to the bank and sign the papers at 1pm.I go back to his place at 2pm and he says they now won't lend him the money because his wife left him, I forgot to add he got a hold of his wife and she is comeing back on Friday,she realized she jumped the gun,lol.Any how the bank says they have to get councilling be4 the will give him the money:confused: .Im thinking is this a marriage counclling place or a bank?She has no right to do that, he has more then nough collateral to support the loan.OK, with all this said this is what I did, after the bank said it was a done deal I cancelled my insurance on my trucks and equipment and turned down a job to excavate a septic system,I told the guy the business was sold and I cancelled the insurance,you no how it go's, I would have rented the backhoe and that's when someone would have damaged it.I lost 4500.00 on this job and now that I cancelled my insurace I have to pay to get mechanical fitness's done on all the vehicals,it's the law in ontario.So I'm out about 5k because of this,I made a bill out to give to the bank,dident give it yet ,that's why I'm asking if I can reclain my lose of income and fitness money to get my equipmt back on the road.They said it was a done deal,I feel I have the righ seeing as they backed out,thanks for ny help,sorry about being long winded but I needed to get all the facts in.

Hello M:

I wish you'd learn to use paragraphs. It's VERY hard to read your stuff.

The bottom line is they SAID it was a done deal, but they didn't SIGN anything. I think you're out of gas.

excon

And, if I am reading this right, you definitely can't sue the bank about it! You'd have to sue the person who backed out of the deal And, if he backed out because his wife's leaving altered his financial standing such that he can't get the loan (and you don't know what he told the bank about how his finances are), it would depend on whether your contract to buy has a contingency clause on his getting financing.

For future reference, you don't change anything about your business until you have a signed contract. If anything, you put in the contract that they get the business after you finish the current job.

Thank you froggy:).The problem with deal is it's a friend that was buying the business,cant sue a friend.He had more than enough security for the loan,that I no.Another thing I forgot to mention is the bank manager wanted to make sure all my snow removal contracts would go with the business,she needed proof that they could be trasfered to him.
(paragraphing,lol)


I called all my contacts to let them no the business was sold as she asked,they were all willing to let him take over.Now I have to call them all back and explain the deal fell threw,they don't need the details but it's a pain.