TRENDING: After Two Years, Canada's Rental Market Is Turning A Corner

Clawback Provision

Understand clawback provisions in Canadian real estate — what they are, how they work, and their role in protecting parties in agreements.

Clawback Provision

August 07, 2025


What is a Clawback Provision?

A clawback provision is a contractual clause that allows a party to recover previously granted money, benefits, or rights under certain conditions.

Why Clawback Provisions Matter in Real Estate

In Canadian real estate and development agreements, clawback provisions protect parties if expectations or obligations are not met.



Examples:
  • Recovering development incentives if performance targets aren’t met
  • Reclaiming funds from a partner in breach of contract
  • Adjusting land purchase prices based on future rezoning



Understanding clawback provisions helps developers and investors mitigate risk.

Example of a Clawback Provision in Action

The municipality included a clawback provision to recover tax incentives if the developer did not complete the project by the deadline.

Key Takeaways

  • Allows recovery of money or benefits under conditions
  • Protects parties in development and financial agreements
  • Common in incentive and partnership deals
  • Helps manage performance and compliance risk
  • Should be clearly defined in contracts

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Hale Muskoka Is Going All-Season With Multi-Pronged Expansion

Hale Muskoka Is Going All-Season With Multi-Pronged Expansion
Hale Muskoka at 1160 Bethune Drive North/Hale Corporation

On any given weekend from summer through early fall, Hale Muskoka has something unique to do, eat, and see. You might find yourself building a charcuterie board under the watch of Michelin-recognized chefs, grabbing a bite from a food truck to enjoy at the fireside lounge, or perusing the open-air market with live music as your soundtrack. And that’s only a small taste of what Hale currently is — and what Founder Eric Abugov wants it to be.

“It's built for you to experience,” says Abugov, a development sector veteran who soft-launched the market and events hub with his wife last summer. Today, locals, cottagers, and tourists can flock to their five-acre farm in Gravenhurst, home to a mix of food and retail vendors, a weekly open-air market, and a revolving door of events and activities. More than that, Hale offers the benefits of a “third space” — something Abugov and his wife felt was missing after moving to the area post-pandemic.

Keep ReadingShow less

Burquitlam Rising: What Developers Saw (And See) In The Burgeoning Neighbourhood

Burquitlam Rising: What Developers Saw (And See) In The Burgeoning Neighbourhood

A rendering of Alina, Komo, and Kora, on the right side of the SkyTrain guideway. (Strand)

Throughout history there have been many famous portmanteaus. Combining breakfast and lunch into one meal? Brunch. Getting angry because you’re hungry? You’re hangry. Ben Affleck and Jennifer Lopez are back together? Congrats, Bennifer.

In British Columbia, our most famous portmanteau is Burquitlam, the neighbourhood located on the Coquitlam side of the Burnaby-Coquitlam boundary. The neighbourhood is situated south of the City of Port Moody, and has become its own burgeoning neighbourhood that stands alone from the bustling Lougheed neighbourhood located immediately to the south.

Keep ReadingShow less

OpenForm Redesigns Burnaby OpenRoad Honda Redevelopment, Shifts To Rental

OpenForm Redesigns Burnaby OpenRoad Honda Redevelopment, Shifts To Rental

The market downturn is forcing developers big and small to adapt and revise their projects, and the latest example is Vancouver-based OpenForm Properties and their project set for the Edmonds neighbourhood of Burnaby.

OpenForm is the residential real estate division of OpenRoad Auto Group, which operated what was formerly the OpenRoad Honda Burnaby car dealership before the dealership relocated to 5723 Marine Way in Burnaby in 2023, making way for the site to be redeveloped.

Keep ReadingShow less

GTA Low-Rise Sales Outpace Historic Average For Third Straight Month

GTA Low-Rise Sales Outpace Historic Average For Third Straight Month

Low-rise new home sales in the Greater Toronto Area outperformed their historic average for a third consecutive month in June, even as benchmark prices kept sliding, according to the latest figures from the Building Industry and Land Development Association (BILD).

There were 1,175 total new home sales in June — up significantly from the record low set in June 2025, but still 52% below the 10-year average of 2,456 units, according to Altus Group, BILD's official source for new home market intelligence.

Keep ReadingShow less

Canadian Home Prices Stopped Falling In June (And Buyers Were Already Moving)

Canadian Home Prices Stopped Falling In June (And Buyers Were Already Moving)
Shutterstock

Canadian home prices did something unremarkable in June: nothing.

The National Composite MLS Home Price Index was unchanged from May, according to the Canadian Real Estate Association's July 15 release. That flat reading ended a monthly decline that had run since January 2025.

Keep ReadingShow less

In Canada's West, This Developer Is Building More Than Houses

In Canada's West, This Developer Is Building More Than Houses

Carrington, Calgary (Mattamy Homes)

There's a version of new home construction that most buyers know well: a patchwork of builders, a streetscape that never quite coheres, a construction zone that lingers years after move-in.

Mattamy Homes has spent decades building something different. And in Calgary and Airdrie, that difference is on full display across four communities where the builder controls every stage of development, from land through to the homes, parks, and pathways that help define daily life.

Keep ReadingShow less

Mixed-Use 31-Storey Tower Proposed Near Future 152nd Street Station In Surrey

Mixed-Use 31-Storey Tower Proposed Near Future 152nd Street Station In Surrey

New development proposals continue to pop up along the Fraser Highway corridor, as the Surrey-Langley SkyTrain currently under construction is expected to bring forth waves of new development.

On Monday, Surrey City Council considered a new rezoning application submitted by 1098261 BC Ltd. for a land assembly consisting of 15284 and 15296 Fleetwood Drive, located near the intersection of Fraser Highway and Fleetwood Way.

Keep ReadingShow less

Minto Pivots To Purpose-Built Rental For Five-Tower Mimico Proposal

Minto Pivots To Purpose-Built Rental For Five-Tower Mimico Proposal

Rendering of Grand Park Village in Mimico/Wallman Architects

It’s been around a decade since plans were put in motion for Grand Park Village: a multi-block, mixed-use community proposed for 2 and 10 Audley Street and 29, 31, 39, 59, and 71 Portland Street. The series of addresses are a five-minute walk from Mimico GO, which has drawn plenty of development focus in recent years. (Think: Grand Central Mimico, which was at one point on track to be Ontario’s first transit-oriented community.)

The most recent iteration of the plans come from Minto Communities and call for 42-, 54-, 52-, 39-, and 34-storey towers that would sit in a triangular cluster around an interior courtyard, the GO Transit Rail Corridor running past the south side of the site. True to its name, the community is set to be a contemporary urban village that’s not only a hub for residents, but draws in the public with new retail, daycare, roads, and parkland dedication occupying around 10% of the site.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.