Published May 27, 2026, 12:27 a.m.

Burnaby Eclipse Pre-Sale Buyers Claim Contracts Invalid: Developer Hid $12M CRA Debt and Permit Suspensions, Court Told

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Image 4: Dozens of purchasers of pre-sale units at Burnaby's Eclipse tower are goingt o court in a bid to invalidate their contracts. The project was forced into creditor protection in January 2025 amid financial problems. — Dozens of pre-sale purchasers in troubled Lower Mainland condo tower claim contracts invalid

More than three dozen pre-sale purchasers at Burnaby's Eclipse condo tower have filed applications in B.C. Supreme Court seeking to invalidate their purchase contracts, claiming developer Thind Properties failed to disclose critical financial distress before the project entered creditor protection in January 2025. The buyers allege violations of B.C.'s Real Estate Development Marketing Act (REDMA), asserting they were never informed of a $12 million Canada Revenue Agency judgment against the developer dating to June 2023, the suspension of new home warranty insurance in October 2024, or the City of Burnaby's permit suspension that halted construction in November 2024. The 34-storey tower, which was 95 per cent complete with 232 of 329 units pre-sold when it entered insolvency proceedings, received its occupancy permit on April 10, 2026—yet purchasers like barber Mohammadjavad Nadali, who saved $38,295 for his deposit, claim they would never have signed had they known of the "massive red flags."

Image 5: A sign that says Thind Properties. — Dozens of pre-sale purchasers in troubled Lower Mainland condo tower claim contracts invalid

Image 6: 0bd5c1cd615gp8pk3pm5k5810b — Dozens of pre-sale purchasers in troubled Lower Mainland condo tower claim contracts invalid

The court filings pit provincial consumer protection legislation against federal insolvency law, creating a constitutional tension that could reshape pre-sale contract enforcement across the Lower Mainland. Court-appointed monitor KSV Restructuring Inc., overseeing the developer's finances under the Companies' Creditors Arrangement Act (CCAA), argues the purchasers are attempting to exit "money-loser" deals after the market turned, noting that B.C. Assessment records show the Eclipse tower's value plummeted from $257 million in July 2024 to $185 million by July 2025. The monitor contends that allowing contracts to be voided now would "imperil" the restructuring process, potentially triggering further challenges from other pre-sale buyers and eroding value for creditors including KingSett Mortgage Corporation, which is owed $225 million. This case emerges as Metro Vancouver's condo inventory has doubled year-over-year and multiple developments face receivership, intensifying scrutiny of developer disclosure obligations.

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Lucas Zhang Commentary

From a senior Greater Vancouver agent's perspective, the Eclipse litigation underscores a fundamental shift in pre-sale risk assessment: buyers can no longer assume developer financial stability or that deposit insurance alone protects their investment. The case reveals how quickly "substantially complete" projects can enter insolvency when developers carry heavy mortgage debt and tax liabilities, leaving purchasers holding contracts for units worth significantly less than their purchase price. For clients considering pre-sales in 2026, the practical response is not to avoid the market entirely, but to demand enhanced due diligence on developer leverage, CRA standing, and permit status before signing. The key takeaway is that provincial disclosure laws may offer exit routes, but only if buyers act before federal insolvency proceedings crystallize and stay all claims.