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Relief from forfeiture not granted where buyer claimed lack of capacity to enter into real estate purchase agreement
Friday, June 24, 2022James R.G. CookLitigationAgreement of Purchase and Sale, Real Estate, Courts of Justice Act
As real estate markets fall, buyers are sometimes left scrambling to find alternate sources of financing when the available mortgage funds turn out...
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Lawyer not vicariously liable to opposite party in failed real estate transaction
Thursday, June 23, 2022Stephen A. Thiele, James R.G. Cook, Daria RisteskaLitigationRules of Civil Procedure, Agreement of Purchase and Sale, Real Estate
There appears to be a growing propensity on the part of litigants to sue the opposite party’s lawyer when a transaction fails or something else...
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Buyer breached duty of good faith in failing to complete assignment agreement
Tuesday, June 21, 2022James R.G. CookLitigationAgreement of Purchase and Sale, Town of Caledon, GTA Real Estate
Buyers of pre-construction properties in Ontario sometimes enter into an assignment agreement with another buyer before the completion...
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Neighbour’s “management plan” did not improperly divert equity from plaintiff’s property
Wednesday, June 15, 2022James R.G. CookLitigationAgreement of Purchase and Sale
The case of Rivas v. Anobile, 2022 ONSC 3446 (CanLII), demonstrates the issues that may arise when all the terms and objectives of an...
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Environmental assessment firm not liable to buyer who did not commission their report
Tuesday, June 14, 2022James R.G. CookLitigationAgreement of Purchase and Sale
Buyers should be wary about relying on inspections, appraisals or other reports prepared by a company with whom they have not directly...
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No “waiver by conduct” of financing condition in agreement of purchase and sale
Monday, June 6, 2022James R.G. CookLitigationCondominium, Agreement of Purchase and Sale, Real Estate
With the cooling of the real estate markets, buyers may be in a position to negotiate a limited time period to have a home inspection, arrange financing, or complete other due diligence before...
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Property developer awarded $11 million in lost profits against seller who refused to complete transaction
Thursday, March 17, 2022James R.G. CookLitigationAgreement of Purchase and Sale, Real Estate
When a seller breaches an Agreement of Purchase and Sale (APS) by refusing to complete the sale of a property to a buyer, the buyer is generally entitled to the return of...
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Court refuses to impose 5 pm deadline for delivery of real estate closing proceeds
Tuesday, March 8, 2022James R.G. CookLitigationAgreement of Purchase and Sale, Real Estate, GTA Real Estate
Real estate transactions may be scheduled to be completed by a certain time of day, depending on the wording of the Agreement of Purchase and Sale (APS). In some cases,...
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Sellers not allowed to rely on “escape clause” to accept a better offer
Monday, November 29, 2021James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale, GTA Real Estate
In some cases, sellers may wish to ‘hedge their bets’ by accepting a conditional offer that contains a term allowing them to continue to market the property for sale until...
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Buyers bound to agreement of purchase and sale negotiated by family friend
Tuesday, October 26, 2021James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale, GTA Real Estate
Buyers who rely on real estate services provided by a family friend would do well to ensure that they are fully aware of the consequences of entering into a...
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Buyer entitled to repudiate agreement after discovering water damage
Wednesday, August 11, 2021James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale, GTA Real Estate
During the period between the time an Agreement of Purchase and Sale (APS) is signed and the completion date, a property being purchased usually remains in...
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Buyers lose right to recover deposit after seller breaches agreement
Tuesday, August 3, 2021James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale
After an Agreement of Purchase and Sale (APS) is signed and a deposit is paid it may be weeks or months before the scheduled completion date. In the case of new properties under construction, it could be...
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Seller entitled to repossess townhouse after buyer fails to complete purchase
Friday, July 2, 2021James R.G. CookLitigationAgreement of Purchase and Sale, Real Estate, GTA Real Estate
Sales of new condominiums and townhouses may sometimes allow a buyer to move into a unit on an “interim occupancy date” which may be several months before the purchase is scheduled to be finally...
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Buyer’s failure to waive conditions nullifies agreement of purchase and sale
Friday, June 4, 2021James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale, Land Title Act, GTA Real Estate
While conditional offers may be rare in the Greater Toronto Area, where multiple bidders compete for most properties, buyers in less heated markets may...
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Buyer loses $100,000 deposit after refusing to purchase condominium
Tuesday, May 25, 2021James R.G. CookLitigationAgreement of Purchase and Sale, Ontario Court of Appeal , Real Estate
It is settled law in Ontario that when a buyer fails to complete an agreement of purchase and sale, the seller is entitled to retain the deposit without having to prove any loss. This means that...
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Buyers’ liability to sellers in aborted real estate transactions - Part 2
Monday, May 3, 2021James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale, GTA Real Estate
We have previously addressed a number of circumstances in which buyers unsuccessfully attempted to back out of a binding Agreement of Purchase and Sale (APS) for the purchase...
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Owner of corporation personally liable for litigation misfeasance
Wednesday, April 7, 2021James R.G. CookLitigation, Real EstateOntario, Agreement of Purchase and Sale, Personal Liability
One of the perceived benefits of using a corporation for real estate or other business transactions is to shield the individual owner from personal liability for costs and other...
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Seller Not Responsible for Zoning or Future Use Limitations of a Property
Tuesday, December 22, 2020James R.G. CookLitigation, Real EstateOntario, Agreement of Purchase and Sale, Zoning By-Law
A recent decision of the Ontario Superior Court of Justice affirmed that preliminary discussions between a buyer and seller regarding the potential zoning or...
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Misrepresentation in Square Footage leads to Rescission of Agreement of Purchase and Sale
Wednesday, December 2, 2020James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale, Ontario Court of Appeal , Stouffville, Misrepresentation
A misrepresentation by the seller and real estate agent as to the square footage of a residential property in Stouffville, Ontario resulted in the rescission of the Agreement of Purchase and Sale...
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Discovery of Water Damage Insufficient to Terminate Real Estate Purchase Transaction
Friday, October 23, 2020James R.G. CookLitigation, Real EstateFlooding, Insurance Policy, Agreement of Purchase and Sale, Damages
In Bilotta v. Booth, 2020 ONCA 522, the Ontario Court of Appeal determined that the buyer of a residential property did not have the right to...
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Real Estate Investor’s Claim for Lost Opportunity Damages Rejected
Tuesday, October 20, 2020James R.G. CookLitigation, Real EstateAgreement of Purchase and Sale, Damages
In Akelius Canada Inc. v. 2436196 Ontario Inc., 2020 ONSC 6182 (CanLII), the Ontario Superior Court of Justice...
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Buyer’s Claim for Lost Value Damages of a Residential Subdivision Home
Wednesday, September 2, 2020James R.G. CookLitigation, Real EstateContract Law, Agreement of Purchase and Sale, Damages
The party seeking damages arising from a failed real estate transaction is often the seller, who seeks to recover the agreed-upon sale price from a buyer. Conversely, when a seller breaches the agreement...
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