Large Pillar Obstructing Storefront is NOT a Material Change

The Court of Appeal upheld a trial judge’s decision that a “large pillar blocking part of a storefront in a constructed condominium unit” was not a material change from the disclosure statement provided to the prospective purchaser. As a result, the purchaser was not entitled to rescission under sections 73 and 74 of the Condominium Act, 1998. 

The Act defines a material change as a change that a reasonable purchaser, on an objective basis, would have regarded as sufficiently important to the decision to purchase a unit that it is likely that he would not have entered into an agreement of purchase and sale for the unit or would have exercised his right to rescind.

The Court of Appeal was not satisfied that the presence of a large pillar in the storefront was a material change. The Court said:

The Act requires that the disclosure statement provide that the plan is “intended to give purchasers an overview of the units in the Condominium and the location of the Condominium.” It was not intended to provide structural details.

I am left wondering if there are any changes in structural details that would provide rescission rights under the Act. I some in some circumstances the purchaser would have other legal remedies against the developer, either because of the terms of the agreement or with Tarion for unauthorized substitutions.