Assignments Can Cause Difficulties Over Closing Dates (Ontario)

Assignment stock vector. Illustration of notice, flat - 124340542

Question:

I represent assignees in an assignment for a detached home. The assignment states that other than the deposit for the assignment (25k) all payments and the deposit for the original APS are to be paid upon closing of the original Agreement of Purchase and Sale.

Solicitors reviewed and approved condition for both parties, as well as developers consent.

The Buyers (assignees) and the developer agreed to extend the closing.

The Assignor is upset as they want to get their money according to the previous closing date that was in the original APS. It has been delayed numerous times by the way (between assignor and builder prior to this assignment).

Does the Assignor have any recourse to claim the money now?

Answer

There is a problem here. The Standard Form OREA Assignment Agreement does not contain a specific provision that deal with this. This should indeed be covered. The Assignor has a vested interest in an early closing date. Consequently, a provision to require the Assignor Consent should be added to every agreement to protect the Assignor.

Unfortunately, the clause the Assignor needs is simply not there.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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