Navigating the complexities of caveats under S.89 of the Transfer of Land Act

Nominating a new purchaser under a contract of sale of land is fraught with risk. LPLC continues to see claims where purchaser clients enter into a contract (or option) to purchase land and then nominate a substitute or new purchaser after applying for a planning permit, building permit or undertaking other land development activities.

Many contracts for the sale of land include a ‘subject to finance’ clause giving the purchaser the right to end the contract if they cannot get loan approval. The clause imposes a number of things that the purchaser must do, usually within a tight time frame, before they can use the clause to end the contract.