A vendor brought an application arising from a real estate transaction involving multiple holdbacks secured by lawyers’ undertakings.
The dispute concerned entitlement to a construction lien holdback, a building permit holdback, and a construction work holdback following closing of the property sale.
The court held that the purchasers could not refuse release of the construction lien holdback where no liens were registered and a solicitor had given a clear undertaking.
The vendor was also granted equitable relief from forfeiture in respect of the building permit holdback, as the permit closure had been obtained and the delay in notification caused no prejudice.
The remaining construction work holdback was ordered paid into court pending resolution of related civil claims.
