Planning Act Consent is a True Condition Precedent

Planning Primer 1: The Legislative Background for Planning in Ontario



My understanding is that Land Severance is a True Condition Precedent – and no agreement exists if severance is rejected. I found the below two options in the material- 

1. – Agreement of Purchase and Sale will become Null and Void if the severance is not approved by municipality before completion date 

2 – The Planning Act clause in Agreement of Purchase and Sale requires the municipality to approve the severance before agreement become binding 

Not sure which is correct.


Compliance with the Planning Act is a True Condition Precedent, it cannot be waived by either party. So, if there’s no approval by the municipality, then, there’s no deal, it is null and void. That’s answer #1.

The Agreement between the parties is already binding. We are just waiting for the decision of the municipality to see what happens. So, #2 is incorrect.

Brian Madigan LL.B., Broker

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