Post Closing Rescission Rights Under REDMA – When Closing Does Not Necessarily Mean Closed

A recent decision of the Supreme Court of British Columbia, released May 23, 2012, has held that under the Real Estate Development Marketing Act ("REDMA"), purchasers may have the right to rescind their contract, even after their sale has been completed and title has passed to the purchaser.

In Woo v ONNI Ioco Road Five Development Limited Partnership,¹ five plaintiffs claimed rescission rights under their purchase contracts. The plaintiffs entered into contracts of purchase and sale with the developer in 2006 and 2007. Each plaintiff received a copy of the original disclosure statement before entering into the contract for purchase sale for their respective unit. While the developer filed the first amendment to the disclosure statement, none of the plaintiffs were provided with copies. The plaintiffs first became aware of the amendment several months after they had completed the purchase of their respective units. Of the five plaintiffs, four did receive copies of