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ARTICLE · 23 SEPTEMBER 2026

REDMA Disclosure Obligations: When Can Presale Purchase Contracts Become Unenforceable?

McCarthy Tétrault
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In KingSett Mortgage Corporation v Lumina Eclipse Limited Partnership, 2026 BCSC 1598, the Supreme Court of British Columbia confirmed that a developer’s failure to disclose material facts...

CanadaReal Estate and Construction
The Lay Of The Land
The Lay Of The Land
Craig Shirreff
Craig Shirreff
Lance Williams
Lance Williams
Ashley Bowron
Ashley Bowron
Kathy Tran
Kathy Tran
Saneea Tanvir
Saneea Tanvir
Lauren Praill
Lauren Praill
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In KingSett Mortgage Corporation v Lumina Eclipse Limited Partnership, 2026 BCSC 1598, the Supreme Court of British Columbia confirmed that a developer’s failure to disclose material facts arising after presale purchase contracts are executed can render those contracts unenforceable pursuant to section 23 of the Real Estate Development Marketing Act (REDMA).

The decision is significant for developers, lenders, insolvency professionals and presale purchasers because the court also held that purchasers may rely on this defence even if the developer is under court-supervised protection pursuant to the Companies’ Creditors Arrangement Act (CCAA).

Background: The Lumina Eclipse development

This case related to Lumina Eclipse (the “Development”), a 329-unit condo development near Brentwood Mall in Burnaby, BC developed by Thind Properties (the “Developer”).

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