Back in April, we looked at a Court of Appeal decision
addressing
disclosure to purchasers of proposed units in condominium
developments. It was a cautionary tale for the risk associated
with inconsistent or confusing disclosure or omitting to disclose
where appropriate. It was this author's view that, had the
disclosure been more specific and clear, the Court would have been
more likely to find the relevant provisions to be valid and
enforceable.
In the recent case of Lin v. Brookfield Homes (Ontario) Ltd.
(the "Lin Case") from the Court of
Appeal, the Court again looked at the builder's Disclosure
Statement, this time with regard to the notion of "material
change" under the Condominium Act, 1998 (the
"Condo Act") and whether the
builder's disclosure was adequate. Under the Condo Act,
whenever there has been a material change in the information
contained in the builder's disclosure to purchasers, those
purchasers may, within 10 days of becoming aware of the
