The appellant agreed to purchase a property from the respondents for $106,000, paying an $8,000 down payment and assuming the monthly mortgage payments.
When the appellant sought to pay off the mortgage and obtain the deed, the mortgage balance had been reduced to $71,000.
The respondents argued the appellant still owed the original $98,000 balance, with the difference going to them.
The motions judge agreed with the respondents.
On appeal, the Court of Appeal found the motions judge erred, as his interpretation would result in the appellant receiving no credit for the mortgage payments made and paying substantially more than the agreed $106,000 purchase price.
The appeal was allowed, and the court declared the appellant was only required to pay the amount owing on the mortgage on the closing date.
