Purchasers of a hotel condominium unit sought return of a $228,250 deposit after the transaction failed to close by the contractual deadline.
The developer argued the purchasers breached the agreement by failing to close and forfeited the deposit.
The court found the developer’s solicitor had effectively extended the closing date through assurances that the parties need not close while concerns about increased common expenses were addressed.
No revised disclosure statement or statutory notice under the Condominium Act, 1998 was delivered despite a significant increase in common expenses.
Because the transaction failed to close through no fault of the purchasers, the agreement was terminated and the purchasers were entitled to the return of their deposits with prejudgment interest.
