The purchaser applied under the Vendors and Purchasers Act regarding a requisition or question related to a real estate purchase contract. In this case, the respondent, a home builder, had sold a house to the applicants, with
the agreement mandating the provision of a Tarion warranty.
The builder sought to increase the purchase price by $152,640 due to alleged increased construction costs related to COVID-19. The applicants disputed the adjustment, arguing it only applied to costs directly resulting from changes in legislation or government requirements.
The court interpreted the contract, finding that the adjustment clause applied only to costs directly caused by changes in legislation or government requirements related to building. The court ruled that the adjustment claimed by the respondent was not justified under the contract, as it did not result from changes in legislation or government requirements.
The Tarion warranty, forming part of the agreement, did not support the respondent's claim for the adjustment. Therefore, the court declared that the respondents were not entitled to the adjustment claimed on closing.
Comments