Neither purchaser nor vendor of a new home was ready to close on the closing date. They agreed to postpone it for 4 days and then an additional two days. The purchaser was still not ready to close and the vendor, who was ready to close, terminated the agreement and claimed the deposit. The purchaser relied on the Tarion Addendum, which called for an extension of 90 days, but allowed the parties, if they wished, to decide on their own closing date, as they did. The addendum stated, however, that the parties’ decision as to a new closing date was voidable by the purchaser – if the purchaser gave notice before the new set closing date. In this case, the purchaser did not notify the vendor that he was voiding the new closing date. Accordingly, the agreed closing date was still operative and the vendor terminated properly. The court then savaged the Tarion Addendum as a trap for the unwary.
Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.