The Plaintiff, Reza Hassim Zadeh Tabrizi, sued Majesty Development Group Inc. for breach of an Agreement of Purchase and Sale (APS) for a property, seeking the return of his $150,000 deposit.
He alleged Majesty breached the APS by refusing to consent to a severance application, which he claimed was a fundamental term.
Majesty counterclaimed for damages due to the Plaintiff's failure to close, including loss of bargain, carrying costs, and financing costs for another property.
The Plaintiff also brought a third-party claim against his real estate agents for negligence, alleging they failed to include the severance condition in the APS.
The court found that the Plaintiff breached the APS by refusing to close, primarily due to a decline in the real estate market, and that severance was not a term of the original agreement.
Majesty's refusal to cooperate with severance was not a breach.
The court awarded Majesty damages for the difference in sale price and carrying costs, but denied claims for financing costs of another property and property improvements, finding them too remote or unnecessary.
The Plaintiff's action against Majesty and the third-party action against the real estate agents were dismissed.