In the Context of an Application for Resolution of a Sale, the Court Must Not Consider the Effect of Depreciation in the Assessment of the Costs of the Corrective Work Required to Correct the Defect


November 16, 2016 Real Estate and Construction

This post, published on Éditions Yvon Blais’ blog on latent defects on November 14, 2016 (FR), discusses the judgment in Martin v. Brière (Full Text | Fiche Quantum), in which the Superior Court, in a judgment from the Honourable Gary D.D. Morrison, reminded us that the court must not consider the effect of depreciation when the buyer requests the resolution of the sale.

The Superior Court reminds us that depreciation may be useful for guiding the court in the calculation of damages to be paid by a debtor in order to prevent a creditor from benefitting, as the owner of the property, from an added-value. However, with respect to the resolution of the sale, the court reminds us that what must be evaluated is the significance of the amounts to be paid by the buyer to correct the defects in relation to the purchase price paid, in order to determine whether the buyer should remain the owner of the property.

This bulletin provides general comments on recent developments in the law. It does not constitute and should not viewed as legal advice. No legal action should be taken on the basis of the information contained herein.

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