Understanding Seller Warranties and the Timing of Disclosure Obligations The Ontario Superior Court’s recent decision in Coppendale v. Mills, 2025 ONSC 5192, provides important guidance for transactional real estate lawyers about the interpretation of standard warranty clauses in agreements of purchase and sale. This case serves as a stark reminder that the precise wording of these clauses matters and that assumptions about their operation can prove costly for buyers and sellers alike. The Facts Adam and Tracey Mills listed their 1958-built Hamilton home for $1,089,000 in May 2023. After viewing the property, prospective buyers Cole Coppendale and Jordanna Cvitkovic noticed…
Osajie v. Alile, 2025 ONSC 1209, offers transactional real estate lawyers valuable insights into how Ontario courts handle failed purchase transactions, misrepresentation claims, and the importance of well-drafted contractual protections. This summary judgment decision demonstrates how proper documentation and clear contractual language can protect vendors when buyers attempt to rescind agreements based on dubious claims. Case Background The case involved a straightforward real estate transaction gone wrong. Benny and Joy Osajie (vendors) entered into an Agreement of Purchase and Sale (APS) with Eevine Alile (purchaser) for $960,000. When the defendant refused to close, the vendors brought a summary judgment motion…
Nedaneg Financial Corporation v. Talebzadeh, 2025 ONSC 848, offers important guidance for real estate lawyers on when courts will grant certificates of pending litigation (CPLs) in cases involving alleged fraudulent conveyances. The decision highlights how judges must balance traditional equitable factors against evidence of schemes to defeat creditors. Background: A Pattern of Strategic Asset Placement Following a mortgage default on a Toronto property, Nedaneg Financial Corporation obtained a consent judgment against Pedram Talebzadeh for approximately $3.7 million. After commencing power of sale proceedings, a shortfall of $536,807 remained. What happened next illustrates a common creditor avoidance strategy that real estate…
Madison Homes Cornell Rouge Limited v. Jia Lin Huang and Pingkai Wu, 2025 ONSC 657, serves as a stark reminder of the risks inherent in preconstruction home purchases and the limited grounds available to buyers seeking to escape their contractual obligations. For transactional real estate lawyers, this decision reinforces several key principles while highlighting common pitfalls that can ensnare unwary purchasers. The Facts: A $1.6 Million Mistake The case involved a preconstruction purchase of a $1,559,000 home in Madison Homes’ Cornell Rouge development. The purchasers, Jia Lin Huang and her mother Pingkai Wu, signed the agreement of purchase and sale…
Kelian v. Trafford, 2025 ONSC 734, serves as a crucial reminder for real estate practitioners about the importance of proper easement documentation and the risks that arise when property rights remain unclear. This recent Ontario Superior Court decision demonstrates how seemingly settled arrangements can unravel when properties change hands, leaving new owners exposed to significant liability. The Facts Vatcho Kelian owned a property in Gorrie, Ontario, with multiple residential buildings served by a septic system located underneath his neighbor Paul Trafford’s property. When the aging septic system failed and was permanently decommissioned, Kelian sought a court order requiring Trafford to…
Mari v. Sanjer, 2025 ONSC 1787 As transactional real estate lawyers, we draft agreements anticipating smooth closings. But what happens when your client agrees to reduce the purchase price to help a struggling buyer, only to have the deal fall through anyway? The recent Ontario Superior Court decision in Mari v. Sanjer offers important lessons about contract amendments, consideration, and the duty to mitigate in failed real estate transactions. The Facts In February 2022, the defendants agreed to purchase the plaintiff’s Hamilton property for $1,450,000, with a $100,000 deposit and an August 15, 2022 closing date. By August, the real…
In the high-stakes world of commercial real estate transactions, the phrase “time is of the essence” is more than boilerplate language—it’s a contractual cornerstone that can make or break a deal. The recent Ontario Superior Court decision in Goncalves v. 958041 Ontario Limited, 2025 ONSC 1813, offers transactional real estate lawyers a stark reminder of how strictly courts will enforce these provisions, even when parties continue to communicate after a deadline passes. The Facts This dispute arose from an Agreement of Purchase and Sale (APS) dated February 28, 2023, for an industrial property in Stoney Creek, Ontario, with a purchase…
Real estate transactional lawyers often assist clients with mortgage financing, but what happens when those transactions go sideways? A recent Ontario Superior Court decision offers important lessons about mortgage enforceability, the limits of creative defenses, and the high bar for obtaining injunctive relief against power of sale proceedings. The Players and the Problem In Condoman Developments v. Cannect International Mortgage, Justice Morgan confronted a situation where an experienced real estate developer, Howard Youhanan, owed over $46 million to lender Marcus Tzaferis and his companies, Cannect International Mortgage Corporation and Cannect Mortgage Investment Corporation. The loans had been in default since…
Esther Gerstel Inc. v. Scott, 2025 ONSC 1448 In a decision that should interest real estate lawyers drafting or reviewing private mortgage documents, Justice Vermette of the Ontario Superior Court recently clarified important limits on a lender’s ability to unilaterally impose mortgage renewal fees—even when the mortgage appears to grant “absolute discretion” to do so. Background In August 2021, Esther Gerstel Inc. (“EGI”) advanced a loan of $815,000 to Denise Michelle Scott, secured by a mortgage on her Toronto residence. The mortgage had an interest rate of 22% per annum, with a one-year term maturing on August 12, 2022. The…
Correa v. Valstar Homes (Oakville Sixth Line) Inc., 2025 ONCA 156 The Ontario Court of Appeal’s recent decision in Correa v. Valstar Homes serves as a stark reminder to transactional real estate lawyers about the unforgiving nature of “time is of the essence” clauses. This case demonstrates how a mere eight-minute delay in closing can cost purchasers over $100,000 and highlights critical considerations for drafting and advising on purchase agreements. The Facts: A Costly Eight Minutes The Correas entered into an Agreement of Purchase and Sale (APS) with Valstar Homes in February 2020 to purchase a newly built home in…