Purchasing condominium units from developers: a critical analysis of purchaser vulnerability in the unregulated market and British Columbia's legislative response

Abstract

Purchasers of unconstructed condominium units face a number of challenges in an unregulated market. Buying a property sight unseen, a purchaser is completely reliant on the developer’s description of the property. Moreover, the disappointed purchaser is profoundly disadvantaged in seeking legal recourse. Common law and equitable remedies leave the purchaser with either limited remedies for being wronged, or even no remedy in some circumstances. Arguing that regulation of the unconstructed condominium market is required, this thesis explores the theoretical foundations for regulation. Specifically, this thesis considers three protectionist measures in the British Columbia Real Estate Development and Marketing Act, providing suggestions for law reform where appropriate. Overall, this thesis demonstrates that regulation favouring either the developer or purchaser results in an unbalanced, unfair marketplace. By choosing a middle ground, the aims of the legislative intervention in the undeveloped condominium market can be met while addressing the needs of all stakeholders.