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In a more drastic case, if in a Sale and Purchase Agreement, the vendor authorizes the purchaser's solicitor as the escrow/stakeholder to receive not just the deposit but the purchase price on his behalf (required by law), and the contract states that if it is voided when neither parties at fault, the seller should refund the purchaser all money paid to the seller while the purchaser returns the seller's documents/property: but the stakeholder steals the money paid, is the seller still obligated to refund it? Or is it the job of a compensation fund to refund the purchaser?

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The purchaser’s solicitor is the purchaser’s agent

That means, vis-a-vis the vendor, the solicitor is the purchaser. An act or omission of the agent is an act or omission of the purchaser. Therefore, its the purchaser’s fault the money went missing and the vendor can do whatever the contract says they can do - probably require the purchaser to complete and, if the don’t sell the property to someone else and sue for any shortfall in excess of the deposit.

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  • Thanks! To clarify, is there grey area if stated: Any receipt of the Solicitor(s) acting for the Vendor or the Purchaser if the Vendor is unrepresented for any monies paid by the Purchaser under or pursuant to this agreement shall be a good and sufficient discharge to the Purchaser and to the Solicitor(s) acting for the Purchaser, and the Vendor hereby warrants that the Solicitor(s) acting for the Vendor or for the Purchaser if the Vendor is unrepresented shall have full authority to receive on behalf of the Vendor all monies payable by the Purchaser to the Vendor under this Agreement.
    – Ryan
    Commented Mar 6, 2021 at 9:22

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