Designing a holdback clause
Real estate transactions often include holdbacks to deal with environmental issues. Unfortunately, the holdback clauses are often poorly worded, which can lead to unnecessary disputes. A recent case in the Ontario Superior Court illustrates the problem:
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An enthusiastic study on Water Quality Trading recommends using “cap and trade” to control phosphorus levels in the Lake Simcoe watershed. Lake Simcoe needs a major reduction in phosphorus loadings, even as population and climate change increase. The Lake Simcoe Protection Plan c…
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