In 2014, the Supreme Court of Canada in Bhasin v. Hrynew formally recognized the “organizing principle of good faith” in Canadian contract law. Since then, many Canadian courts have had occasion to interpret and apply this principle in the context of real estate transactions. A recent decision of the B.C. Supreme Court, Zhang v. Amaral-Gurgel, adds to this line of authority, offering insight into the application of the principle of good faith in the context of lawyer’s approval clauses.… Continue Reading
The “time is of the essence” clause in a standard purchase contract is often treated as “boilerplate”, but this short, simple statement can be critically important, as it makes it “essential” that the parties perform their obligations by the relevant dates and times specified in the contract (e.g., the date by which a deposit must be paid or closing must occur). What is not well understood is that, if the parties subsequently agree to extend a date specified in the contract, they may lose their ability to rely on the “time is of the essence” clause. This somewhat … Continue Reading
Prospective purchasers of private managed forest land in British Columbia (land classified as “Class 7 Private Managed Forest Land”) should be aware that:
- future property assessments for the land may be higher than the purchaser is expecting on account of timber previously harvested on the land; and
- the purchaser may incur exit fees if the purchaser removes the property from the Private Managed Forest Land class.
BC Assessment values private managed forest land based on the land’s bare land value, but also on the added value of the timber situated on the land. Importantly for a prospective purchaser, the timber … Continue Reading