Case information

Property — Real property — Condominiums — Agreement of purchase and sale — Anticipatory breach — Condominium Act — Statutory interpretation — Did the Court of Appeal err in law by declaring that the Notice of Rescission was invalid — Did the Court of Appeal err by declaring that the Notice of Rescission constituted an “anticipatory breach of the Agreement that entitled Brookfield to terminate the Agreement” on the basis that it was not made in “good faith”? — Did the Court of Appeal err by refusing to address the ten-day limitations period set out in the Condominium Act?

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

The applicant, Mr. Chen, agreed to purchase a luxury detached single-family home, structured as a condominium, from the respondent Brookfield. On January 19, 2017, the parties entered into an Agreement of Purchase and Sale (“Agreement”). On November 24, 2017, Mr. Chen notified Brookfield that it wanted either a mutual release from the transaction or a postponement. After Brookfield offered a brief extension, Mr. Chen advised Brookfield that he wanted a “cancellation of the deal”. On December 7, 2017, Mr. Chen provided a written notice of rescission, claiming that the amenities (the parkette and entry/exit gates) had not been completed as set out in the disclosure statement, which justified rescission. Brookfield advised Mr. Chen that it was terminating the Agreement due to his anticipatory breach, his deposit would be forfeited, and it was reserving its right to recover losses. Mr. Chen issued a Statement of Claim seeking a return of his deposit and damages. Brookfield filed a statement of defence and counterclaimed for damages. Brookfield’s motion for summary judgment was granted, and Mr. Chen’s claim was dismissed with costs. The Court of Appeal dismissed the appeal with costs.