Key Facts

• In 2018, the parties entered into a Deferred Purchase Agreement for a property in Spruce Grove, with a purchase price of $540,700, closing on May 31, 2021.
• Defendants paid a $15,000 non-refundable holding fee, to be credited toward the purchase price.
• Rent was not credited to the purchase price despite references to a "rent-to-own" arrangement.
• Defendants occupied the property, initially paying $3,190/month, but began paying reduced rent in April 2020 due to COVID-19.
• In December 2020, defendants notified Homeowners they would not purchase the property.

Procedural History & Legal Issues

• Homeowners sought $122,309.15 in damages for rental arrears and breach of contract.
• The Applications Judge dismissed summary judgment, citing a triable issue on whether section 40 of the Law of Property Act (LPA) barred damages.
• Appeal Allowed: The Court held section 40 did not apply because the agreement was not a financing arrangement, rent was not credited, and the holding fee did not create an equitable interest.

Decision & Damages

• $18,433.57 awarded for rental arrears.
• $4,196.27 for out-of-pocket costs (repairs, marketing, and appraisal).
• No additional damages for breach, as the resale price offset the claim.
• Parties may submit cost arguments within 21-30 days.