Root of Title Example

(Ontario)

Let’s assume that A grants the right to B to sell his property. That right is evidenced by a Power of Attorney.

A dies, and the POS is no longer valid.

B sells A’s property to C, using the invalid POS.

On closing, this is discovered and there is no solution.

C is not obligated to close the deal. B cannot make good title. This is a matter which goes to the root of the contract. A requisition need not have been sent. The search period does not apply.

The fact that B has no title at all and not right to convey whatsoever is an example of a matter going to the “root” of title.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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