The recent decision of CIBC Mortgages Inc. (c.o.b. Firstline Mortgages) v. Computershare Trust Co. of Canada,  ONSC 543 provides a fact scenario that sounds like it was dreamt up by a law school professor, but for the three innocent lenders involved, the situation was a nightmare. A homeowner granted a first mortgage to Computershare which was later fraudulently discharged from title. After the Computershare mortgage was discharged from title, the homeowner granted further mortgages to Firstline and Secure Capital. Firstline and Secure Capital had no knowledge of the fraudulently discharged Computershare mortgage, so based on their review of … Continue Reading
Lawyers representing strata lot purchasers in British Columbia have, to date, made considerable hay by emphasizing that the Real Estate Development Marketing Act (British Columbia) is “consumer protection” legislation to be interpreted in favour of purchasers. The bias in favour of the consumer has arguably lost some of its lustre in the past year or so (see, for example, the decision in Woo v. Onni, discussed here), but there is still concern that, when in doubt, the courts will invoke the consumer protection nature of the legislation to justify a decision in favour of the proverbial “little guy”, … Continue Reading
In Chaisson v. Avra Developments Corp. 2014 BCSC 925, the B.C. Supreme Court considered the argument that a developer’s failure to disclose a specific calendar date for the effective date of a deposit protection contract was a breach of the Real Estate Development Marketing Act (“REDMA”) entitling a purchaser to rescind their contract.
The developer had disclosed in the original disclosure statement the possibility that it would enter into a deposit protection contract. In a subsequent amendment, it disclosed that it had entered into a master insurance policy deposit protection contract but provided only for a rolling effective … Continue Reading