BCCA Clarifies ‘Materiality’ Threshold For Purchaser’s Right To Rescind Under REDMA

A recent decision of the British Columbia Court of Appeal (BCCA) reaffirms the need to balance the interests of developers and purchasers under the B.C. Real Estate Development Marketing Act (REDMA) by clarifying the "materiality" threshold underlying a developer's obligation to disclose facts and the concomitant right of a purchaser to rescind a purchase agreement for inadequate disclosure. In finding for the developer, the BCCA held that a developer's failure to provide purchasers with an amendment to a disclosure statement did not give rise to a purchaser's right of rescission under REDMA where such amendment did not contain objectively material facts or relate to adverse effects on the purchaser.