This summary judgment motion concerned a failed real estate transaction where the vendor (Hastings Local Housing Corporation) terminated the Agreement of Purchase and Sale (APS) due to an inability or unwillingness to obtain severance for two properties that had merged titles.
The plaintiff-purchaser sought specific performance or damages.
The court found that the vendor had a contractual obligation and a duty to act in good faith to apply for severance under the terms of the APS (clauses 10 and 15) and the Planning Act.
The vendor's failure to apply for severance constituted a breach of contract.
While specific performance (transfer of property) could not be ordered without severance, the court declared the contract binding and ordered the vendor to pursue a bona fide application for severance within 60 days.
