In these times of heightened interest rates and inflation, certain purchasers of pre-sale or pre-construction condominiums may well be wrestling with buyer’s remorse as the closing date looms closer. The regret can be even stronger for those who may have signed contracts of purchase and sale several years previously, during a different economic climate.
According to Blake, Cassels & Graydon LLP, some buyers, presumably looking for a way out, might be inclined to argue that the condominium developers failed to meet their contractual obligations.
However, it is important to note that making an argument of contract breach towards a developer is not an easy route. The threshold to demonstrate that the developer breached the contract which allows the purchaser to walk away is high.
In general, a contractual commitment requires all parties involved to fulfil their obligations stipulated in the contract. A party that believes another party hasn’t met their obligation, or breached the contract, must meet specific conditions to prove this claim.
The contract’s terms, context, and the conduct of the parties are significant factors that determine whether there has been a contract breach. Therefore, before jumping to conclusion of a contract breach, the purchaser must investigate and establish the ground for their claims. It’s most advisable to engage legal professionals before initiating such claims.
In conclusion, purchasers considering this line of action should be aware that the onus of proof lies on them. They must be able to sufficiently substantiate their allegations and this task is not trivial. A significant amount of legal and factual groundwork must be carried out to meet what’s often termed a ‘high bar’ in this context.