This case concerns a dispute over a $50,000 deposit in a failed residential real estate transaction.
The purchasers refused to close due to the vendor's inability to deliver free and clear title, specifically the discharge of a private mortgage on or before the closing date.
The vendor counterclaimed for damages, arguing the purchasers were unreasonable.
The court found the vendor's failure to discharge the private mortgage constituted a fundamental breach of the Agreement of Purchase and Sale, entitling the purchasers to the return of their deposit.
The vendor's counterclaim was dismissed.
