An Ontario Agreement of Purchase and Sale makes time of the essence and allows time limits to be extended only by written agreement of the seller and buyer or their lawyers. It also says that if the seller is unable or unwilling to remove a valid title objection that the buyer will not waive, the agreement is at an end and the deposit is returned. The buyer's lawyer delivers a valid title requisition on time, and the day before closing the seller's lawyer admits the defect cannot be cleared by then. Which statement is correct?
Correct Answer
D) An extension needs the buyer's written agreement; otherwise the deal ends and the deposit is returned
Because time is of the essence and the closing date can be changed only by written agreement, the seller cannot extend it alone. If the buyer will not agree to an extension and will not waive the valid objection, the agreement's title clause applies: the agreement is at an end and the deposit is returned to the buyer.
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