An Agreement of Purchase and Sale requires title free of registered restrictions, except registered restrictions or covenants that run with the land, provided they are complied with. Before the requisition date, the buyer's lawyer finds a registered covenant, fully complied with, that prevents the buyer's planned use. Can the buyer terminate the agreement?
Correct Answer
C) No, the agreement accepts complied-with covenants running with the land
The buyer agreed to take title subject to registered restrictions or covenants that run with the land, as long as they are complied with. The covenant here is registered and complied with, so it is an accepted encumbrance and not a valid title objection, even though it blocks the buyer's intended use. A buyer who needs a particular use should protect it with a condition or a specific term in the agreement.
Why This Is the Correct Answer
This is correct because the agreement itself lists complied-with covenants that run with the land as acceptable. A covenant that fits that description cannot be used to terminate, whatever its effect on the buyer's intended use, because the buyer contracted to take title subject to it.
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Previous Question
In an Alberta commercial purchase, the buyer's offer includes the condition 'subject to the buyer's lawyer's approval of all documentation' by a set date. Before that date, the lawyer raises environmental concerns and states in writing that the documentation is not approved. The buyer has not waived the condition. Can the buyer rely on the condition to end the agreement?
Next Question
A buyer's offer has a home inspection condition (7 days) and a financing condition (10 days) requiring a mortgage satisfactory to the buyer in the buyer's sole discretion; unless the buyer gives written notice by day 10 that financing is arranged, the agreement is void. The inspection finds major issues, but the buyer waives the inspection condition on day 6. On day 9 the lender approves the mortgage only if repairs are finished before closing. What is the buyer's position?