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ARTICLE · 08 SEPTEMBER 2026

B.C. Presale Contracts Declared Unenforceable Due To REDMA Disclosure Failures

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Developers in British Columbia face significant legal consequences for failing to disclose material developments during presale condominium projects, even if construction is eventually completed. A landmark Supreme Court decision examines when post-contract disclosure failures can render purchase agreements unenforceable and whether insolvency proceedings can override consumer protection obligations under REDMA.

CanadaReal Estate and Construction
Matthew Swanson
Matthew Swanson
Matthew Tolan
Matthew Tolan
Ryan Laity
Ryan Laity
Serge Lakatos
Serge Lakatos
Sukhpreet Sandhu
Sukhpreet Sandhu
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Developers marketing presale units in British Columbia must continue to disclose material developments throughout the life of a project or risk losing the ability to enforce their purchase agreements.

In KingSett Mortgage Corporation v. Lumina Eclipse Limited Partnership, 2026 BCSC 1598 (Lumina Eclipse), the British Columbia Supreme Court held that a developer's failure to disclose material developments affecting a condominium project rendered 39 presale agreements unenforceable against the purchasers, notwithstanding that the project was subsequently completed over the course of a Companies' Creditors Arrangement Act (CCAA) proceeding.

The decision provides important guidance on the scope of a developer's continuing disclosure obligations under the Real Estate Development Marketing Act (REDMA), the circumstances in which post-contract disclosure failures can engage s. 23 of REDMA and the interaction between REDMA and the CCAA. It also confirms that subsequent project completion

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