In what circumstances will a purchaser receive an abatement of the purchase price of a house where the area was estimated to be less than he supposed?
Ontario, Canada
The following excerpt is from 1261687 Ontario Inc. v. DiVincenzo, 2005 CanLII 7669 (ON SC):
In Ainsley v Hicke Real Estate Limited [1975] A.J. No. 27 the court stated at paragrah 9: “in the absence of warranty or collateral agreement, where a sale is of specified property for a lump sum and there is no evidence that the purchaser and vendor bargained on a price per unit of measurement, the purchaser is not entitled to an abatement of purchase price, where the actual area is less than he supposed…this subject has recently been reviewed by Lieff J. in Rexhill Holdings Limited v. Maybird Investments Limited (1973) 1 O.R. 285. In this case a statement as to the area of the house did not amount to a warranty and did not establish a collateral agreement to that effect”.
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