Consultation on Pre-sale Consumer Disclosure Form

BCFSA consulted on the development of a new pre-sale consumer disclosure summary form under the Real Estate Development Marketing Act (“REDMA”). The summary form will provide consumers with information on the key risks of purchasing a pre-sale development unit, as well as their contractual rights under REDMA.

Background

Property transactions are among the largest purchases most consumers will ever make, so it is important that buyers understand their rights when entering into an agreement to purchase a pre-sale unit. BCFSA requested feedback on an additional disclosure obligation for developers that highlights or “brings forward” key information from their disclosure statement, like consumer rescission rights and other conditional events.

To learn more about REDMA, please see BCFSA’s Real Estate Developer Resources.

Consultation Timeline

• Phase 1: REDMA Pre-sale Consumer Disclosures Technical Working Group
  (February – March 2024)

• Phase 2: Public Consultation
  (April 17 to May 17, 2024)

Phase 2: Public Consultation (Complete)

On April 17, 2024, BCFSA launched its consultation to address a newly proposed requirement under REDMA, mandating developers to include a Summary of Pre-sale Risks and Buyer Rights form (“summary form”) at the front of their initial disclosure statement filing for pre-sale developments. The summary form is intended to provide consumers with information respecting key risks and contractual rights that they should consider prior to signing a pre-sale contract.

BCFSA held an information session for impacted stakeholders on May 2, 2024.
 

Consultation Materials

• Advisory - Consultation on New Consumer Disclosure Form for Pre-sales
• FAQs - Proposed Consumer Disclosure Form for Pre-sales
• Summary of Pre-Sale Risks and Buyer Rights Form
• Policy Statement 14 - Redline

The consultation closed on May 17, 2024.

BCFSA thanks those who took the time to participate in the consultation.

Phase 1: REDMA Enhanced Pre-sale Consumer Disclosures Technical Working Group (Complete)

During the first phase of the consultation process, BCFSA established a Technical Working Group (“TWG”) of key stakeholders. The group was comprised of individuals who may be directly impacted by the change and were equipped with expert knowledge and practical experience necessary for the development of the pre-sale consumer disclosure summary form.

Further details regarding the goals and timelines for the TWG are available in the Terms of Reference.

Technical Working Group Members

• BC Real Estate Association
• B.C. Notaries Association
• Condominium Home Owners Association
• Land Title Survey Authority
• The Society of Notaries Public of British Columbia
• Urban Development Institute
• Urban Land Institute
• Vancouver Island Strata Owners Association
• Jennifer M. Williams, MLT Aikins LLP