Can a vendor’s lien be used as security for the remainder of a purchase price?
Ontario, Canada
The following excerpt is from King Lofts Toronto I Ltd. v. Emmons, 2013 ONSC 6113 (CanLII):
For example, in Major v. Buchanan, supra, the client sold his small residential property to the developer of an apartment and had only a vendor’s lien as security for the balance of the purchase price. The agreement of sale allowed the purchaser to demolish the residence. However, as a parcel of vacant land, the property was too small for a new building permit. The solicitor who was involved in the negotiation of the agreement was found negligent for his failure to warn the client that the demolition of the property jeopardized the client’s security.
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