The appellant purchased land from the respondents with a vendor take-back mortgage.
The purchase agreement and mortgage provided that if the official plan was not amended to change the zoning designation to "Business Commercial" prior to June 17, 2018, the principal amount would be reduced by $600,000.
The mortgage also contained a standard charge term providing that if the lands were sold without the respondents' consent, all amounts owing plus a three-month interest bonus would immediately become due.
The appellant sold the property in February 2017 without consent and paid $600,000 into court, arguing the price reduction applied.
The application judge dismissed the application, and the Court of Appeal upheld the dismissal, finding that the plain language of the mortgage clearly stipulated the June 17, 2018 deadline and that the appellant's sale triggered the obligation to pay all monies owing including the interest bonus.