Good Faith and Time is of the Essence

There have been some real estate cases which cite the good faith Bhasin case.

Consider the following for closing-failures (or “time is of the essence” / good-faith) cases that engage the duty of honest performance, good faith from Bhasin v. Hrynew (2014 SCC 71),


CaseCitation / YearShort summary & link
Deangelis v. Weldan Properties Inc.2017 ONSC 4155Buyer requested a 3-day extension; seller refused under a “time is of the essence” clause. The court held that absent bad-faith conduct by the seller, the vendor was entitled to rely on the clause. Good-faith analysis invoked.
801Assets Inc. v. 605446 Ontario Ltd.2016 ONSC 2772Seller found not ready, willing and able to close; court found seller acted in bad faith and thus could not rely on strict termination. Discussed in the context of good-faith duty.
Fortress Carlyle Peter St. Inc. v. Ricki’s Construction & Painting Inc.2019 ONCA 866 (motion summary referenced in 2019 ONSC 1507)Seller delayed estoppel certificate, delivered it late/incorrectly, then insisted on deadline — court held seller’s bad-faith conduct precluded strict reliance on time-is-of-the-essence clause.
More v. 1362279 Ontario Ltd. (Seiko Homes)2023 ONCA 527Vendor terminated after purchasers’ funds delayed by minor time; court found vendor acted in ‘bad faith’ and was not ready/willing to close, therefore vendor couldn’t rely on “time is of the essence”.
Mehta v. Drag2022 ONSC 4574Buyer’s waiver late by one day owing to seller’s mis-representations; court found seller’s conduct breached duty of honest performance (citing Bhasin) and ordered relief.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

Leave a Reply

Your email address will not be published. Required fields are marked *