Shida Azari

The Ontario Land Tribunal held a seventh Case Management Conference regarding a land compensation claim under the Expropriations Act.

The parties advised they were continuing discussions, exchanging reports, and intended to seek Tribunal-assisted mediation.

The Tribunal declined to schedule another CMC or hearing date at this time, directing the parties to provide a written progress report or a draft Procedural Order by December 3, 2021.

The appellants (sellers) appealed a decision granting the respondent (purchaser) rescission of an agreement of purchase and sale and return of the deposit.

The dispute concerned the interpretation of an illegal substances clause in a standard form Ontario Real Estate Association/Toronto Real Estate Board Agreement of Purchase and Sale.

The purchaser discovered after execution that the property had previously been used as a marijuana grow-operation and sought to terminate the agreement.

The application judge found the sellers had breached their representation and warranty in the clause.

The Court of Appeal reversed, holding that the sellers' representation and warranty regarding the property's prior use was limited to their knowledge and belief as it existed at the time of execution of the agreement, not at closing.

Since the sellers did not know about the prior use at execution, no breach occurred.