Can You Refuse to Close Because Amenities Are Unfinished?

Lin v. Brookfield Homes (Ontario) Limited, 2019 ONCA 706

An unfinished development can look very different from the completed community shown during the sales process. In Lin, the court considered whether incomplete common elements justified a purchaser’s refusal to close.

The purchaser bought a pre-construction detached home structured as a condominium unit. At closing, a parkette and entrance and exit gates had not been built.

She relied on those unfinished features to challenge the transaction and sought the return of her deposit.

The Court of Appeal upheld the decision against her. The unfinished amenities did not amount to a material change under section 74 of the Condominium Act, 1998. The agreement also expressly stated that failure to complete common elements by occupancy would not constitute failure to complete the unit.

The court noted that the gates and parkette were subsequently constructed. It dismissed the appeal, leaving the purchaser unsuccessful in recovering her deposit.

The decision distinguishes a purchaser’s expectations about completed amenities from the legal conditions governing the obligation to close.

What this could look like in practice

Suppose your unit is approaching closing, but landscaping and shared recreation areas remain unfinished. You feel that the development is not what you agreed to purchase.

A useful review would identify exactly what is incomplete, what the agreement says about completion, and whether the concern involves timing, permanent removal, or a different feature altogether.

Photographs, dated marketing materials, the disclosure statement, and written updates would help organize the issue. Those documents allow a more precise discussion than describing the entire project as unfinished.

The takeaway

Before withholding closing funds, distinguish concerns about outstanding work from a legally supported right to refuse completion. A dispute about amenities requires careful attention to both the statutory provisions and the agreement’s treatment of common elements.

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.

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If a Buyer Cannot Close, Is Losing the Deposit the Only Consequence?