Accelerated Completion Date Entitles Purchasers to Rescission

Oct 20 2009

In a recent decision of the British Columbia Supreme Court, an acceleration of the estimated completion date was sufficient to justify the remedy of rescission for two purchasers of condominium units.

The Plaintiffs, two real estate agents, entered into agreements of purchase and sale for three units in a development in Vancouver.  The disclosure statement provided an estimated completion date of December 31, 2009.  The agreement provided the purchaser with a contractual right of rescission if any change was made which “materially affects the offering”.  The Plaintiffs received an amendment to the disclosure statement which sought to accelerate the estimated completion date to April 30, 2009.  The Plaintiffs provided written notice to the developer of termination and asked to have their deposits returned.

 
The question before the Court was whether the agreement permitted the acceleration of the completion date.  While the agreement contemplated a delay in the completion date, the Court found that an eight month acceleration was a material change which provided the Plaintiffs with the ability to terminate the agreement and have their deposit returned.
 
The full text of the decision can be found at http://www.courts.gov.bc.ca/jdb-txt/SC/09/12/2009BCSC1290.htm. If you have any questions on this topic, or any other real estate matter, contact Una Gabie at (250)869-1230 or gabie@pushormitchell.com
These items are intended for general informational purposes only and should not be construed or relied upon as legal advice. The legal issues addressed in these items are subject to changes in the applicable law. You should always seek legal advice concerning any specific issues affecting you or your business.