Buyers cancelling contracts?

Apparently the courts in BC are doing buyers of real estate justice. A recent Supreme Court ruling decided that a buyer was allowed to walk away from his purchase with his $350,000 deposit and this was consistent with the consumer protection laws in the Real Estate Development Marketing Act (REDMA).

The REDMA states that if a buyer of condo that has not yet been built does not receive notice of changes in the development, she has the option to rescind or walk away with the deposit. Of course, it is a little more complicated then that, but the point is that the laws to protect buyers, are being enforced and supported by the courts.

During the past year or so, I have reviewed many contracts of buyers wanting to get out of their obligation to complete their purchase. Most of the time, they had no recourse. In some cases, they walked away from their deposit. Most sellers know their obligation to keep the buyers informed, but it's worth exploring to make sure all disclosure has been properly given to the buyer.


If your lawyer is not helping you, ask yourself why not.