The appellant agreed to sell her home at 45 Moore Avenue, Toronto to the respondents.
Between execution of the Agreement of Purchase and Sale and closing, neighbouring property owners asserted ownership of a two-foot-wide strip of the driveway.
The respondents refused to close, claiming the appellant could not convey clear title to the entire driveway.
The appellant sued for damages; the respondents counterclaimed for return of their deposit.
The motion judge found in favour of the respondents, determining that the APS represented the appellant owned all of what visually appeared to be the functioning private driveway, and that the title defect was significant enough to justify refusing to close.
The appellant appealed, arguing the APS only required sale of a seven-foot-wide driveway (per the 1987 survey) and that any defect was not significant.
The Court of Appeal dismissed the appeal.