The purchasers of a new home terminated their agreement of purchase and sale after the builder failed to complete construction by the outside closing date.
The builder disputed the termination, claiming the purchasers had verbally agreed to an extension, and brought an application for specific performance.
The purchasers brought a motion to stay the application and refer the dispute to arbitration pursuant to the Tarion Addendum.
The court applied the competence-competence principle and found it was at least arguable that the dispute fell within the scope of the arbitration clause.
The builder's application was stayed and the matter referred to arbitration.
