BC Court Voids $30.5M of Burnaby Presale Contracts: What Buyers Must Check

A BC Supreme Court judge ruled in August 2026 that presale contracts at the Lumina Eclipse tower in Burnaby are unenforceable against the buyers, because the developer never disclosed a $12 million CRA judgment, a suspended building permit and suspended warranty insurance. Media reports put the contracts at roughly $30.5 million. The ruling is a big deal for every presale buyer, and it was won on disclosure, not on luck. What the court actually decided The decision 2026 BCSC 1598 concerns buyers who signed presale contracts between 2021 and 2023 for a Burnaby condo project whose developer later entered CCAA insolvency proceedings in early 2025. According to a summary from Queenstone Law, the buyers argued that the developer failed to tell them about material problems as they happened, and the court agreed. Issue What was reportedly not disclosed CRA debt A $12 million judgment registered on title Loan funds $9.7 million used in breach of the loan agreement Warranty New home warranty insurance suspended Permit and build Building permit suspended, construction stopped, major completion delay Key legal point: under section 23 of the Real Estate Development Marketing Act REDMA , a contract made without proper disclosure cannot be enforced against the buyer. Unenforceable is not the same as cancelled, and the court has not yet ruled on who gets deposits back. That is reportedly being dealt with separately. Why insolvency did not wipe out buyer rights The lenders and the court-appointed Monitor argued that buyers could not rely on REDMA inside a CCAA process. The court rejected that. REDMA gives buyers a defence, not a claim, so insolvency stay orders do not block it. For buyers, that means a developer going insolvent does not automatically erase your rights. What it means for you if you hold a presale If you already hold a contract Keep every disclosure statement amendment, email and project update. Check your deposit sits in a lawyer's trust account. If the developer goes quiet, ask for written updates on the permit, financing and warranty status. If you are about to sign Read the disclosure statement for the project's financing, legal claims and liens. Search title for registered judgments before you commit a dollar. Our disclosure statement checklist walks through it. Reality check: winning on paper is not…

This article is part of the PresaleProperties.com BC real estate guide library. It is intended for buyers comparing presale condos, townhomes, assignments, deposits, completion timelines, neighbourhoods and developer incentives across Metro Vancouver and the Fraser Valley.

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