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ARTICLE · 16 MAY 2025

Commercial Litigation Insights: Developers Beware: Courts Curb Developer Overreach On Closing Adjustments

A recent Ontario Superior Court decision offers a cautionary tale for developers – and a significant win for residential purchasers.

CanadaCorporate/Commercial Law

A recent Ontario Superior Court decision offers a cautionary tale for developers – and a significant win for residential purchasers.

In Bellisario v. 2200 Bromsgrove Development Inc., 2025 ONSC 2456, a group of purchasers of pre-construction units in a townhouse complex challenged surprise closing adjustments totalling tens of thousands of dollars, imposed on them shortly before the scheduled closing date. The developer claimed the right to recover all of the adjustments imposed under the purchase agreement ("APS"). The purchasers challenged the validity of the adjustments, arguing that the charges were not authorized under the APS and that the developer had acted in bad faith.

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