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ARTICLE · 07 NOVEMBER 2024

REDMA-Based Claim By Strata Corporation Overturned

Lawson Lundell LLP
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The B.C. Court of Appeal recently released its decision in Findlay v The Owner, Strata ESP401 ("Findlay") where it states, for the first time, that strata corporations...

CanadaReal Estate and Construction
Lisa Frey
Lisa Frey
Nazanin Khoshnoudian
Nazanin Khoshnoudian
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The B.C. Court of Appeal recently released its decision in Findlay v The Owner, Strata ESP401 ("Findlay") where it states, for the first time, that strata corporations do not have standing to bring a claim against developers on behalf of individual strata unit purchasers for misrepresentation in the developer's disclosure statements. This case involves an issue of statutory interpretation of section 22(3) of the Real Estate Development Marketing Act ("REDMA") and section 171 of the Strata Property Act ("SPA").

In Findlay, a developer corporation of a residential property (the "Developer") converted an apartment building into a strata development. Following the deposit of a strata plan in the Land Title Office, the Developer provided prospective purchasers with brochures detailing information on the development, including the Developer's promise to contribute a specific amount of funds to the contingency reserve fund and to replace the plumbing supply lines, the

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