In Ontario, what is the standard remedy for a buyer who defaults on an Agreement of Purchase and Sale?

Option B: The seller must pursue specific performance through the courts

While specific performance is a possible remedy, it's not the standard or primary remedy. Specific performance requires court action and is typically pursued only when monetary damages are inadequate or when the property is unique. The seller must choose between retaining the deposit or pursuing specific performance - they cannot do both. Most sellers prefer the certainty and immediacy of retaining the deposit rather than engaging in costly and time-consuming litigation.

Option C: The buyer forfeits 10% of the purchase price

There is no automatic 10% forfeiture rule in Ontario real estate contracts. The amount forfeited depends on the actual deposit amount paid by the buyer, which is typically negotiated between the parties and can vary significantly. The deposit amount is not standardized at 10% of the purchase price, and the remedy is based on the specific deposit amount held in trust, not a predetermined percentage of the purchase price.

Option D: The transaction is automatically void with no penalties

A buyer's default does not automatically void the transaction without penalties. The contract remains valid, and the seller has remedies available, primarily retaining the deposit. The transaction only becomes void if both parties agree to terminate or if the seller chooses to accept the buyer's repudiation and treat the contract as terminated. Even then, the seller typically retains the deposit as compensation for the breach.