Pitfalls Of Early Termination Conditions – And How To Avoid Them

Two recent court decisions have rekindled the focus on the hot real estate marketplace and escalating costs, and their impact on termination of low- and highrise preconstruction contracts. There is both good and bad flowing from both of those decisions. Builders need to take care when drafting their agreements both in completing the Tarion addendum and also protecting themselves from potential damage claims and actions for a specific performance by insertion of certain provisions.

Green Urban case

The recent case of Green Urban People Ltd. and Lucas Berthault et al., highlights the dangers of builders taking advantage of early termination conditions in order to cover escalating costs and increased prices in the rising market.