Informal agreements to extend closing dates are voidable if they violate the Tarion Addendum.
This application concerned the interpretation of an agreement of purchase and sale (APS) and its Tarion Addendum after a residential property transaction failed to close.
The court found that the vendor breached the APS by failing to deliver an Occupancy Permit by the firm closing date and by purporting to terminate the agreement based on invalid interim closing dates.
The court emphasized the consumer protection objectives of the Tarion Addendum, requiring strict adherence to its provisions for changing critical dates and setting delayed closing dates.
Attempts by counsel to informally extend closing dates were deemed voidable by the purchaser and ineffective against the statutory framework.
The purchaser was declared not in breach, and the vendor's termination was invalid.
Remedies for specific performance or damages were deferred to a later proceeding.
SCJSuperior Court of JusticeMay 30, 2019