The wave of buyer's remorse has begun to take shape in many real estate markets, after home prices started to decline and the number of sales slowed down over the past two months.

Brokers and lawyers in Toronto and Vancouver say they have noticed buyers looking at their options to back out of the purchase process, and sellers hoping to ensure the completion of a deal because conditions have changed significantly from the previous high levels and the frenzied pace.

The Canadian Real Estate Association said on Monday that the country saw a 25.7 percent decrease in the number of homes sold over the past year and a 3.8 percent drop in home prices between March and April, with the average home price last month being $741,517.

These figures have prompted some sellers to explore legal proceedings to ensure transactions go through, while other buyers are concerned about the value of pre-sale properties they bought years ago but have not yet taken possession of.

Mark Morris, a real estate lawyer in Toronto, said, "In recent weeks, I have witnessed nine cases where buyers want to pull out of deals," but on Monday three sellers contacted him eager to use legal methods to prevent buyers from backing out.

Phil Soper, CEO of Royal LePage, said people "panic" every time the market turns and look into what should be done about the deals they signed, but few end up backing out because it is difficult to get out of such transactions except during the two-year pandemic when buyers found an outlet to cancel the purchase.

Morris said most buyers trying to cancel a deal this year will not succeed because there is no legal way out.

Morris mentioned that in cases where the buyer places money in the seller's trust account, these funds cannot be released except through legal proceedings, either by closing the deal or by mutual agreement not to proceed with the sale.

In the event the deal ends, brokers can file a lawsuit for their lost commission, but many do not explore this path because "it is not good" to take legal action against a client who may continue to turn to you when trying to sell the home.