Introduces New Consumer Disclosure Requirement and Consumer Guide
BCFSA has launched two initiatives aimed at enhancing protections for buyers of pre-sale development properties, while supporting real estate developers with large development projects
BC Financial Services Authority (“BCFSA”) has launched a new pilot program that extends the early marketing period for real estate developers with large projects from 12 months to 18 months.
Under the Real Estate Development Marketing Act (“REDMA”), developers can typically undertake early marketing activities over a 12-month period to secure pre-sale buyers for units within their properties. This helps developers secure financing and building permits for their projects. Due to their complexity and size, large development projects often face challenges securing the necessary approvals and financing within the 12-month marketing period.
BCFSA’s new pilot program, which was launched on February 25, 2025, and takes immediate effect, will allow eligible developers with projects of 100 or more development units to undertake an additional six months of early marketing. This provides developers with a total of 18 months to secure the approvals and financing required to complete their projects.
To participate in the pilot, developers will be required to submit quarterly reports on sales data and market trends to BCFSA. This data will be used to evaluate the impact of the early marketing period on real estate development in B.C. and inform future BCFSA policy decisions, balancing the need to support the industry while maintaining robust consumer protections.
“Rising construction costs and economic uncertainty have resulted in a challenging environment for developers of large projects,” said Jon Vandall, BCFSA’s Senior Vice President, Compliance and Enforcement. “This pilot program will provide developers with more time to secure financing and building permits for large, often complex, developments, so consumers can have confidence that their pre-sale units will be completed.”
As part of the pilot’s development, BCFSA consulted with leaders from the B.C. real estate development community, represented by the Urban Development Institute, who provided feedback on the program.
Buyers should be aware if they put a deposit on a pre-sale unit in a project that does not receive the necessary financing and building approvals, their deposit may be tied up for an additional six months and they may be at risk of re-entering the market under different conditions. Buyers can confirm whether a development is participating in the pilot program, and therefore has an 18-month early marketing period, by referring to their disclosure statement and (for disclosure statements filed after April 1, 2025) the dates on their Summary of Pre-sale Risks and Buyer Rights form. If a development is participating in the pilot program, the disclosure will indicate an 18-month early marketing period.
BCFSA encourages buyers to seek professional advice from a lawyer, notary, or real estate licensee before entering into a pre-sale contract to help them understand the contract, the disclosure statement, and the potential risks of purchasing a pre-sale property.
BCFSA Introduces New Consumer Disclosure Requirement and Releases New Guide to Help Protect Buyers of Pre-Sale Developments
To help consumers understand their rights and obligations when purchasing a pre-sale unit, BCFSA is also implementing a new requirement for real estate developers to attach a completed form to the front of disclosure statements to highlight important information about the development that buyers should be aware of. Disclosure statements are legal documents that highlight important information about a development and must be provided to a buyer when they enter a pre-sale agreement. Development projects can be complex and result in long, complicated disclosure statements that are difficult for the average purchaser to understand. This new requirement – the Summary of Pre-sale Risks and Buyer Rights form – helps to highlight important information from the disclosure statement and purchase agreement and encourages buyers to seek professional advice and read the entire disclosure statement.
The requirement to complete and attach the new summary form will come into effect on April 1, 2025.
In conjunction with these initiatives, BCFSA has also released a new Consumer Guide to Pre-sale Real Estate Purchases to help consumers understand the risks involved with purchasing a pre-sale development unit. The guide aims to empower consumers with essential knowledge about pre-sale risks, helping them to navigate the process with greater confidence.
More information:
• REDMA Early Marketing Period – Pilot Program for Large Developments webpage
• Consumer Disclosure Pre-sale Summary form webpage
• Consumer Guide to Pre-sale Real Estate Purchases
Kate Bilney
BC Financial Services Authority
778-357-1634
media@bcfsa.ca
