If you`re confused by Ontario`s real estate forms, read these OREA plain language forms. Some of the most important safeguards for suppliers affected by the use of the term „promise“ relate to compliance with construction law. These warranties have increased attention in recent years due to the predominance of weather-sealing problems in newly constructed buildings, particularly those using a construction technique known as monolithic cladding. The warranty in the existing form was designed to protect buyers from the risk of illegal and therefore potentially shabby work. It ensures that at the time of possession, when the work was done by the seller, the necessary consents were obtained, the work was carried out in accordance with the authorizations and a certificate of compliance from the board was issued for the work. A recent case confirmed that this guarantee is only a guarantee of compliance and not a guarantee of quality. (1) The case centred on the standard warranty of the seller, who had issued a code compliance certificate for the job. This guarantee proved to be incorrect. The Tribunal objected to an application to convert the warranty into an obligation to complete the work to a particular standard, as the parties had not entered into a contract to that effect. Instead, the court found that the correct amount of the damage was the amount of money needed to put the complainants in the position they would have been in had the offence not occurred – that is, the difference in the value of the house at the time of sale with a code certificate of compliance and without such a certificate. In the absence of evidence of this difference before the Tribunal, the applicants remained without a remedy. Clause 19.6 contains the seller`s commitment to have a certificate of compliance with the council code for all the seller`s work (or by comparison) that requires such a certificate.
This promise includes both a guarantee and an obligation, and if there are doubts as to whether section 19.6 will require the seller to obtain a code certificate of compliance, allegedly as a condition of billing, this doubt is dispelled by Article 19.1, which states that all commitments must be kept or corrected.