Purchasers often expect construction dates to change, but that does not mean every agreement allows unlimited extensions. In Schneeberg, the Ontario Court of Appeal considered whether a developer could postpone occupancy and closing beyond the specified date.

The purchaser agreed to buy a condominium unit in the Trump International Towers development and paid substantial deposits. The unit was not ready for occupancy by the contractual closing date.

The developer argued that the agreement, interpreted as a whole, permitted extensions until the unit was substantially complete.

The Court of Appeal rejected that interpretation. The agreement did not give the developer an unlimited unilateral right to delay closing. On its wording, the missed date entitled the purchaser to terminate and recover the deposits. The purchaser had not waived that right.

The result depended on the particular agreement. It should not be read as establishing that every missed occupancy date creates a cancellation right under today’s purchase agreements and addenda.

What this could look like in practice

Imagine receiving several notices moving your expected occupancy date. You have extended a lease twice and now want to know whether you must continue waiting.

A practical first step would be a timeline showing the original dates, each notice, the delivery method, and any amendments you signed. Keep the full notices, including attachments and emails.

That timeline would help distinguish an extension expressly permitted by the agreement from a possible failure to follow the required process. It would also identify communications that might affect the parties’ positions.

The takeaway

The relevant question is not simply how long construction has taken. It is whether the agreement and applicable framework permit the particular extension and whether the required steps were followed. Review the documents before accepting an amendment or sending a termination notice.

Contact JY Law to discuss your circumstances and how we may assist you.

The information on this page is provided for general educational purposes only and does not constitute legal advice. These summaries highlight selected principles and do not address every issue or subsequent legal development. Examples are hypothetical and do not predict outcomes. Rights and obligations depend on the agreement, applicable legislation, relevant dates, and particular circumstances. Reading this page or contacting our firm does not, by itself, create a lawyer-client relationship. If you have further questions or require advice about your situation, please contact us.