A major B.C. court battle highlights the risks buyers can face when a presale project runs into financial and construction trouble.

Buying a presale condo can be exciting. You choose a home before construction is finished, secure a purchase price and, ideally, watch the building take shape over the following months or years.

But there is another side to presale ownership that deserves just as much attention: you are committing to purchase something that does not yet exist in its finished form.

A recent legal battle involving the Eclipse condominium development in Burnaby provides an important real-world example of why buyers need to understand not only the unit they are purchasing, but also the developer, the disclosure documents, the purchase contract and the risks that can arise between signing and completion.

And this case is about much more than whether a condo has increased or decreased in value.

🏗️ What happened at Eclipse?

Eclipse is a 34-storey residential development at 2381 Beta Avenue in Burnaby, developed by companies associated with Thind Properties.

When the project entered creditor protection in January 2025, construction was approximately 95% complete and approximately 232 of the 329 units were subject to presale contracts, according to the court-appointed monitor.

The project had encountered serious difficulties before entering the Companies' Creditors Arrangement Act (CCAA) process.

Among the issues that became part of the broader legal dispute were:

• A significant CRA judgment involving the developer

• The suspension of new-home warranty coverage

• A suspension of the building permit by the City of Burnaby

• Construction interruptions

• Significant secured debt associated with the project

KingSett Mortgage Corporation, the project's secured lender, said it was owed approximately $189 million under two mortgages when Eclipse entered creditor protection.

The situation was serious enough that the project entered court-supervised restructuring under the federal CCAA.

Importantly, however, the story did not end there.

A court-appointed monitor worked through the restructuring process, construction ultimately resumed, and the project moved toward completion. The monitor's 2026 reporting indicates the project was substantially complete by March 2026, with an occupancy permit issued in April 2026.

⚖️ Why did some buyers go to court?

This is where the story becomes particularly important.

A group of presale purchasers asked the B.C. Supreme Court to declare their purchase contracts unenforceable.

Their argument was not simply that the condos had fallen in value.

The purchasers argued that material information relating to the development and the developer's circumstances had not been properly disclosed under B.C.'s Real Estate Development Marketing Act (REDMA).

Among the issues raised were the developer's financial difficulties, the warranty situation and the building-permit suspension.

That distinction matters.

A falling real-estate market by itself does not mean a purchaser can simply walk away from a presale contract.

The legal question was much more fundamental:

What happens when circumstances surrounding a development materially change, and what disclosure obligations continue to apply to the developer?

That is why this case has attracted attention beyond Eclipse itself.

📚 What is REDMA?

REDMA is B.C. legislation designed to provide protections to consumers purchasing development property.

Under REDMA, developers are required to provide purchasers with a disclosure statement containing information about the development and material facts. The disclosure statement also addresses purchasers' rights and obligations.

This is one reason a presale purchase should never be treated like simply signing an offer on a completed resale property.

A presale disclosure statement can contain information about:

• The development and proposed construction

• Estimated completion dates

• Strata-related information

• Parking

• Project costs and fees

• The purchaser's contractual rights

• Circumstances in which a purchaser may have cancellation or rescission rights

BCFSA specifically advises purchasers to read the disclosure statement and any amendments before signing.

🔎 The important point: a presale contract isn't just about the floor plan

When buyers look at a presale, it is natural to focus on:

The price.
The floor plan.
The view.
The amenities.
The estimated completion date.

Those things matter.

But there is another layer of due diligence that can be just as important.

Who is the developer?

A buyer should understand who is actually behind the project and consider the developer's experience and track record.

What does the disclosure statement say?

The disclosure statement is a legal document, not simply a marketing brochure.

What does the purchase contract allow?

Presale contracts can contain provisions dealing with completion dates, extensions, assignments, changes to the project and circumstances surrounding completion.

What happens if the project is delayed?

A delay can affect your housing arrangements, financing, interest rates and personal plans.

What happens if the market changes?

The market value of the finished property may be different from the price you agreed to pay years earlier.

BCFSA specifically identifies market-value changes, delays and even the possibility that a development may not be completed as risks that purchasers should understand.

💰 What about the deposits?

This is another part of the Eclipse situation that deserves attention.

The purchaser applications involved dozens of units with a combined purchase value of tens of millions of dollars. Reporting on the proceedings indicates that approximately $3.6 million in purchaser deposits was involved in the dispute.

The important point is that having a purchase contract declared unenforceable does not automatically mean every issue surrounding the deposits is immediately resolved.

The treatment and recovery of deposits can involve separate legal and insolvency considerations.

That is an important reminder that a presale transaction can become considerably more complicated if the developer encounters financial distress.

🏦 Why does the CCAA matter?

The Eclipse situation also highlights an unusual collision between two areas of law.

On one side is REDMA, which is designed in part to protect purchasers of development property.

On the other is the Companies' Creditors Arrangement Act, or CCAA, which provides a framework for financially distressed companies to restructure under court supervision.

The court-appointed monitor has a responsibility to consider the interests of the restructuring process and creditors.

In the Eclipse case, the monitor argued that allowing purchasers to walk away from their contracts could create significant losses because the presale prices were higher than current market values.

The monitor reported that reselling affected units could require price reductions, incentives and additional time to find buyers.

That creates a genuine tension:

How do you protect purchasers while also preserving the value of a development that is being restructured?

That is one of the reasons the Eclipse case is worth watching.

🚨 Does this mean B.C. presale buyers can now cancel their contracts?

No.

This is perhaps the most important takeaway.

It would be misleading to interpret the Eclipse proceedings as creating a general right for B.C. presale buyers to cancel their contracts whenever a project experiences financial problems or its market value declines.

The legal outcome depends on the specific facts, the applicable legislation, the disclosure documents, the contract and the circumstances surrounding the particular purchaser.

The case should therefore not be interpreted as:

"Buyers can purchase a presale and walk away if the market falls."

That is not the lesson.

The more useful lesson is:

The information surrounding a presale matters, and purchasers need to understand their statutory and contractual rights before signing.

🧾 B.C. has already strengthened presale consumer information

Interestingly, BCFSA has taken steps to make presale risks easier for consumers to understand.

Since April 1, 2025, where the applicable REDMA requirements apply, developers must attach a Summary of Pre-sale Risks and Buyer Rights to the front of the disclosure statement for new filings covered by the policy.

The summary is designed to highlight important issues such as:

• Construction delays or failure to complete

• Changes to closing dates

• Financing and appraisal considerations

• Purchaser contractual rights

• Other risks associated with buying before construction is complete

BCFSA emphasizes that the summary does not replace reading the complete disclosure statement and purchase agreement.

That is an important distinction.

🏠 What should a buyer do before purchasing a B.C. presale?

A presale can still be a very good option for the right purchaser.

But it should be approached with eyes wide open.

Before signing, consider:

1. Read the entire disclosure statement.
Don't rely solely on the sales presentation or marketing materials.

2. Review all disclosure statement amendments.
Changes can occur as a development progresses.

3. Read the purchase contract carefully.
Understand completion dates, extensions, deposits, assignments and cancellation provisions.

4. Research the developer.
Look at its history, completed projects and reputation.

5. Understand your financing risk.
You may be obtaining financing years after signing the original contract. Interest rates, lending rules and property values can change.

6. Understand the appraisal risk.
The property may appraise for less than your contracted purchase price when it is time to complete.

7. Have the contract reviewed by an appropriate professional.
BCFSA recommends obtaining independent professional advice, including from a lawyer or notary, before entering into a presale contract.

8. Understand that you are buying into a future project—not a finished building.

📌 The bigger lesson from Eclipse

The Eclipse case is fascinating because it demonstrates how many different risks can converge in a single presale project.

A purchaser may start with a straightforward agreement:

Sign contract → pay deposits → wait for construction → obtain mortgage → complete purchase.

But years can pass between those first two steps and the final closing.

During that period, a project can encounter:

Financial problems → construction delays → financing changes → permit issues → warranty issues → insolvency proceedings → changing market conditions.

That is why presale due diligence needs to go beyond choosing the right unit.

🏡 My takeaway for B.C. buyers

I don't believe the lesson from Eclipse is "don't buy presale."

The lesson is:

Know exactly what you are buying—and understand the risks before you sign.

Presales can offer purchasers an opportunity to buy a brand-new home at an agreed price before construction is complete.

But that opportunity comes with uncertainty that doesn't exist to the same degree when purchasing a completed resale property.

The Eclipse situation is a powerful reminder that the developer, the disclosure statement, the contract and the project's financial and construction circumstances can all matter.

And if something significant changes after you sign, don't assume you automatically have—or don't have—the right to cancel.

Get professional advice based on your specific circumstances.

⚖️ A note about this article

The Eclipse proceedings involve complex legal and insolvency issues. This article is intended for general educational purposes and is not legal advice or a substitute for reviewing a specific presale contract or disclosure statement with a qualified professional.

For consumers considering a B.C. presale, BCFSA's Consumer Guide to Pre-sale Real Estate Purchases is an excellent starting point.

Sources & further reading

BC Financial Services Authority (BCFSA) — Consumer Guide to Pre-sale Real Estate Purchases

BC Financial Services Authority (BCFSA) — Consumer Disclosure Pre-sale Summary Form

BC Financial Services Authority (BCFSA) — Presales Information and REDMA guidance

KSV Restructuring Inc. — Court-appointed monitor reports for the Eclipse CCAA proceedings

Supreme Court of British Columbia — Eclipse CCAA court orders and proceedings

Thinking about buying a presale?

If you're considering a presale in the Tri-Cities or elsewhere in B.C., I'd be happy to help you understand the real estate side of the transaction - including the questions you should be asking before you sign.

Tara Kennedy
REALTOR®, ABR, RENE, SRS
📞 236-992-8989
🌐 www.tarakennedy.ca

#BCHousing #BCRealEstate #BCRealEstateNews #BCRealEstateMarket #MetroVancouverRealEstate #LowerMainlandRealEstate #TriCitiesRealEstate #BurnabyRealEstate #RichmondRealEstate #SurreyRealEstate #PresaleRealEstate #PresaleCondo #PresaleBuyers #CondoBuyers #NewConstruction #RealEstateEducation #HomeBuyerTips #RealEstateLaw #REDMA #BCFSA #EclipseBrentwood #EclipseCondo #ThindProperties #DistrictNorthwest #MinoruSquare #HighlineMetrotown #Maywood #BurnabyCondos #Metrotown #Brentwood #RichmondBC #SurreyBC #TaraKennedyRealtor #TaraKennedyRealEstate

A major community investment is underway in Port Coquitlam as construction begins on the new Hazel Trembath Elementary.

After the devastating fire that destroyed the school in October 2023, families and the surrounding community have been waiting for the return of a permanent neighbourhood school. That wait is now moving toward a finish line, with construction officially underway and a December 2027 opening currently expected.

A New School Designed for 240 Students

The replacement Hazel Trembath Elementary will provide 240 student spaces, helping ensure the community has a modern school designed to serve local families for years to come.

The new school will include:

• 2 kindergarten classrooms

• 8 elementary classrooms

• A learning centre designed to accommodate future childcare spaces

• Modern, energy-efficient systems

• EV charging infrastructure

The project represents an investment of nearly $39 million.

A First for B.C.

One of the most interesting aspects of the project isn't immediately visible in the architectural rendering.

Hazel Trembath will be the first school project in British Columbia to use a hybrid construction approach.

Much of the school will be constructed using prefabricated components, while areas such as the gymnasium will use conventional construction methods.

Why does that matter?

The hybrid approach is intended to speed up construction and get students back into their community school sooner than would be possible through a traditional construction approach alone.

For a neighbourhood that has been without its school since the 2023 fire, that timeline is particularly significant.

More Than Just a School

Hazel Trembath has long been an important part of the surrounding community.

A school isn't simply a building where children spend their weekdays. It becomes part of the fabric of a neighbourhood—where children make friends, families connect and generations of residents share experiences.

The replacement school is therefore about more than replacing a building. It represents the return of an important community gathering place.

Part of a Larger Investment in Local Schools

The Hazel Trembath project is also part of a broader investment in schools throughout Coquitlam School District 43.

Since 2017, the provincial government has invested in 11 capital projects within the district. Eight have been completed, while three major projects are currently underway:

🏫 Hazel Trembath Elementary replacement
🏫 Seismic replacement of Montgomery Middle School
🏫 New Burke Mountain Secondary School, also expected to open in 2027

For families living in Port Coquitlam and the surrounding Tri-Cities, these projects are important pieces of the community's ongoing growth.

What This Means for Port Coquitlam

Port Coquitlam continues to evolve, with new housing, infrastructure, schools and community amenities changing the landscape for local families.

For people considering a move to the area, understanding what is being built, where it is being built and when it is expected to be completed can be just as important as looking at today's real estate listings.

The new Hazel Trembath Elementary is a great example of why looking beyond the property itself can provide a better picture of a neighbourhood's future.

📅 Expected opening: December 2027
📍 Location: 1278 Confederation Drive, Port Coquitlam
💰 Project investment: Nearly $39 million
👧 Student capacity: 240

Thinking About Making a Move in Port Coquitlam?

Whether you're considering buying your first home, moving your family or selling a property, local development and infrastructure can be important factors to understand.

I regularly follow what's happening across Port Coquitlam and the Tri-Cities, so my clients can make informed decisions based on more than just what is happening in today's market.

Thinking about buying or selling? Let's talk about what is happening in your neighbourhood. 🏡

Tara Kennedy
REALTOR®, ABR, RENE, SRS
📱 236-992-8989
🌐 TaraKennedy.ca

Sources: Government of British Columbia, Coquitlam School District 43 and Global News.

If you’re comparing communities in the Tri-Cities, there’s another number worth putting on your list alongside home prices, mortgage rates and monthly housing costs:

Property taxes and utilities.

And when it comes to that measure, Port Coquitlam stands out.

According to the City of Port Coquitlam’s 2025 comparison of municipal property taxes and utilities across Metro Vancouver’s 21 municipalities, Port Coquitlam had the lowest combined amount in the region at $4,373 for the year.

The regional average was $6,368.

That puts the average Port Coquitlam amount approximately $1,995 below the regional average.

How Does PoCo Compare?

Here’s how several Tri-Cities and surrounding communities compared in 2025:

The difference becomes particularly noticeable when comparing Port Coquitlam with some of the region's higher-cost municipalities.

The average figure for West Vancouver, for example, was $9,258 — more than $4,800 higher than Port Coquitlam's $4,373.

This Isn't Just a One-Year Difference

What makes the comparison particularly interesting is the longer-term trend.

Between 2021 and 2025, the City reports that taxes and utilities for the average Port Coquitlam property increased by approximately 24%, compared with 39% for the Metro Vancouver average.

So while costs have increased, Port Coquitlam's increases have remained below the regional average.

How Is Port Coquitlam Keeping Costs Lower?

The City says its approach has included line-by-line budget reviews, department efficiencies, deferring non-critical spending, selective use of reserves and surplus funds, leveraging provincial and federal grants, and generating tax revenue through new development.

The City's 2026 budget continues that approach.

For 2026, Port Coquitlam approved a 1.95% increase in municipal property taxes for the average home, described by the City as one of the lowest increases in Metro Vancouver.

For the average home assessed at $1,126,339, that represents an increase of approximately $45.34 in municipal property taxes.

It's also worth noting that the City does not control every cost appearing on a homeowner's bill. For example, the majority of the 2026 increases in water and sewer charges are attributed to increased costs from Metro Vancouver and other external providers.

What Does This Mean for Homeowners?

This is where the numbers become particularly relevant for anyone considering where to buy.

The purchase price of a home is only one part of the cost of homeownership.

A homeowner also needs to consider:

• Mortgage payments

• Property taxes

• Water and sewer costs

• Insurance

• Utilities

• Maintenance and repairs

• Transportation costs

A community with lower municipal taxes and utility costs can therefore have an impact on the ongoing cost of owning a home.

For buyers comparing Port Coquitlam, Coquitlam and Port Moody, this is one more factor worth putting into the equation.

One Important Qualification

There is an important distinction between the figures above and the total property tax bill a homeowner receives.

A municipal property tax bill includes amounts collected on behalf of other organizations, including the Province, school system, Metro Vancouver, TransLink and other agencies. Those amounts are not all controlled by the municipality.

Your actual tax bill will also depend on your property's assessed value and how that value changes relative to other properties in the same class.

In other words, $4,373 is a regional comparison figure — not a prediction of what every Port Coquitlam homeowner will personally pay.

The Bigger Picture

For people already living in Port Coquitlam, the numbers provide an interesting measure of how the community compares with its neighbours.

For people considering buying here, it's another piece of the affordability puzzle.

Port Coquitlam offers something that can be difficult to find in Metro Vancouver: a community where municipal taxes and utilities have historically remained below the regional average, while the City continues to provide services such as parks, recreation, roads, public safety, waste collection and infrastructure.

And in a region where the cost of homeownership continues to be an important consideration, the cost of owning a home doesn't stop at the purchase price.

Sometimes, the numbers behind the monthly and annual costs tell an equally important story.

Thinking of making a move?

Whether you’re considering buying in Port Coquitlam, comparing communities across the Tri-Cities, or thinking about selling your current home, understanding the full cost of homeownership matters.

Thinking about buying or selling? Let’s talk! ✨🏡

📞 Tara Kennedy
🏡 REALTOR®, ABR, RENE, SRS
📱 236-992-8989
🌐 www.tarakennedy.ca

Sources: City of Port Coquitlam 2025–2026 financial plan and tax information; municipal comparison data published by the City of Port Coquitlam based on regional municipal tax and utility figures.

#PortCoquitlam #PoCo #TriCitiesBC #PortCoquitlamRealEstate #TriCitiesRealEstate #BCRealEstate #HomeOwnership #RealEstateBC #PropertyTaxes #HomeBuyers #LowerMainlandRealEstate #LiveInPoCo #TaraKennedy #TaraKennedyRealEstate #RoyalLePageWestRealEstateServices #TaraKennedyRealtor