What is the importance of providing an occupancy certificate and a home sufficiently completed for occupancy?

Ontario, Canada


The following excerpt is from Khomovych v. Bomar 2 Inc. o/a Colony Park Homes, 2019 ONSC 3982 (CanLII):

The plaintiffs state that courts have considered the importance of providing an occupancy certificate and a home sufficiently completed for occupancy. In Aitken v. Regency Homes Inc. 1989 CarswellOnt 3271, in para 19, the court stated, While the failure to obtain an occupancy permit by itself would not permit the plaintiffs to refuse close the transaction, I find as a fact that the house was not finished to the degree that will permit substantial occupancy on March 30, 1986. Accordingly, the plaintiffs were not obliged in law to complete the sale.

In Ashcroft v. Fuller, 2003 CarswellOnt 10468, the court stated in para 10, In our view, the obligation was upon the vendor to provide an occupancy permit on or before closing or an explanation as to why such a permit was not necessary. This was not done, which justified the purchasers, then, on the advice of their lawyer, not closing.

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