Buyer deposit at risk in new home construction
Image by: unsplash
The case of Howard v. 1880485 Ontario Inc. highlights the risk for homebuyers who enter into an Agreement of Purchase and Sale (APS) with a builder/developer who does not yet own the underlying land. In this case, the buyers paid a deposit to the builder, Above All Building, for a home to be constructed on a lot owned by Magenta Waterfront Development Corporation and a numbered company. Above All did not complete the home by the scheduled Outside Occupancy Date, and the buyers terminated the APS, demanding a full refund. However, the buyers were unable to recover the balance of their deposit through a "purchaser's lien" because they did not pay their deposit to the owners of the property.
Read the full article on: REAL ESTATE MAGAZINE
