Change of completion date in new condo development: When a Purchaser was able to Cancel the Deal


Blog by Arnold Shuchat | December 13th, 2012


REAL PROPERTY: CONDO DISCLOSURE STATEMENTS
The Respondent agreed to purchase a strata title apartment unit in Vancouver pursuant to an agreement of purchase and sale which was signed long before the unit was built.  In accordance with the requirements of the Real Estate Development Marketing Act, the Applicant developer filed a disclosure statement, which stated that the estimated date of completion of construction for the development was September 2009.  The development was not fully completed until April 2010.  However, the City of Vancouver issued an occupancy permit for the unit on January 25, 2010.  The Respondent refused to close the purchase of the unit on the stipulated closing date of January 27, 2010.  The Applicant then began proceedings seeking forfeiture of the full deposit that the Respondent had agreed to pay. The trial judge held that the agreement to purchase was enforceable, notwithstanding the incorrect completion date in the disclosure statement.  The C.A. allowed the Respondent’s appeal.
299 Burrard Residential Limited Partnership v. Soroor Essalat (B.C.C.A., June 21, 2012) (34968) "The application for leave to appeal... is dismissed with costs."
Link to C.A. decision
REAL PROPERTY: CONDO DISCLOSURE STATEMENTS

Below is a summary of a recent BC Court of Appeal case involving the failure of a developer to provide to a condo purchaser an Amended Disclosure Statement in writing on account of a changed completion date, notwithstanding the fact that the City of Vancouver issued an occupancy permit prior to the completion date.  This may be relevant to those of you who have purchased new units.... The purchaser got out of this one....


"The Respondent agreed to purchase a strata title apartment unit in Vancouver pursuant to an agreement of purchase and sale which was signed long before the unit was built.  In accordance with the requirements of the Real Estate Development Marketing Act, the Applicant developer filed a disclosure statement, which stated that the estimated date of completion of construction for the development was September 2009.  The development was not fully completed until April 2010.  However, the City of Vancouver issued an occupancy permit for the unit on January 25, 2010.  The Respondent refused to close the purchase of the unit on the stipulated closing date of January 27, 2010.  The Applicant then began proceedings seeking forfeiture of the full deposit that the Respondent had agreed to pay. The trial judge held that the agreement to purchase was enforceable, notwithstanding the incorrect completion date in the disclosure statement.  The C.A. allowed the Respondent’s appeal.299 Burrard Residential Limited Partnership v. Soroor Essalat (B.C.C.A., June 21, 2012) (34968) "The application for leave to appeal... is dismissed with costs."