A seller owns a 40-hectare farm that is not in a registered plan of subdivision. He wants to sell a 1-hectare building lot from it and keep the rest, and no consent has been granted yet. How should the buyer's agreement of purchase and sale be drafted?

Correct Answer

D) As conditional on compliance with s. 50 of the Planning Act, such as obtaining consent

Section 50(3) of the Planning Act bars entering into an agreement of sale and purchase of part of a parcel when the seller keeps abutting land, unless an exception such as a consent under s. 53 applies. Under s. 50(21), an agreement made in contravention creates no interest in land, but the section does not affect an agreement made subject to an express condition that it is effective only if s. 50 is complied with.