Disclosure Statement (REDMA)

The Real Estate Development Marketing Act (REDMA, SBC 2004, c. 41) requires developers to file and deliver a Disclosure Statement before marketing presale residential development units in British Columbia. The BC Financial Services Authority (BCFSA) administers and enforces REDMA, including reviewing filed Disclosure Statements. No developer may lawfully accept a purchase agreement or deposit for a presale unit until a compliant Disclosure Statement has been filed with the BCFSA and delivered to the purchaser.

Under REDMA, a Disclosure Statement must include a description of the development property and proposed units, the material risks associated with the project, the terms governing how purchaser deposits will be held, and all material terms and conditions of the purchase agreement. It must also disclose any encumbrances, legal claims, or restrictions affecting the land. If the development involves strata lots, relevant information about the strata corporation, proposed bylaws, and common property must also be addressed, consistent with the Strata Property Act (SBC 1998, c. 43).

Yes, REDMA provides purchasers with a statutory rescission right, allowing them to rescind a purchase agreement for a presale unit within a set number of days of receiving the Disclosure Statement or an amendment to it. Consult the current BCFSA guidance or the REDMA regulations for the exact number of rescission days applicable in 2026, as these details should be confirmed against the current statute and any regulatory amendments. During the rescission period, the purchaser is entitled to a full refund of any deposit paid.

Under REDMA, purchaser deposits for presale units must be held in trust by a lawyer, notary public, or a brokerage holding a valid real estate licence under the Real Estate Services Act (RESA), until the conditions for release set out in REDMA or the purchase agreement are met. Deposit trust funds must not be commingled with the developer's own funds. The Disclosure Statement must clearly describe the deposit-handling arrangements so purchasers understand how their funds are protected.

Under REDMA, if a material change occurs after the original Disclosure Statement is filed, the developer must file an amendment to the Disclosure Statement with the BCFSA and promptly deliver it to all affected purchasers. Upon receiving a material change amendment, purchasers are generally entitled to a fresh rescission period, allowing them to withdraw from the purchase agreement if they choose. Failure to disclose material changes is a breach of REDMA and can expose developers to regulatory action by the BCFSA.

No. Under REDMA, a developer — and any licensee acting on the developer's behalf — is prohibited from entering into a purchase agreement or accepting a deposit for a presale development unit before a Disclosure Statement has been filed with the BCFSA and delivered to the prospective purchaser. Licensees involved in presale marketing are also subject to the conduct standards of the Real Estate Services Act (RESA) and its Rules, enforced by the BCFSA. Breaching this requirement can result in regulatory penalties for both the developer and the brokerage.

REDMA applies specifically to developers marketing residential strata lots, residential rental units in a strata scheme, cooperative interests, and certain other prescribed development units as defined in the Act. Commercial properties, bare land sales that are not part of a development, and certain exempt categories are generally not subject to REDMA's Disclosure Statement requirements. Developers and licensees should review the specific definitions and exemptions in REDMA and consult the BCFSA to determine whether a particular project falls within REDMA's scope.

Yes. While the REDMA Disclosure Statement addresses project-level risks and deposit handling, purchasers of presale strata units should also review the proposed strata plan, draft bylaws, and budget information that developers are required to include or reference, all of which are governed by the Strata Property Act (SBC 1998, c. 43). Once the strata corporation is formed and the unit is conveyed, documents such as Form B (Information Certificate) and Form F (Certificate of Payment) under the Strata Property Act become relevant for the completed transaction. The Disclosure Statement and strata documents together give purchasers a complete picture of their obligations and rights.

Property Transfer Tax (PTT) under the BC Property Transfer Tax Act is generally payable when the purchaser's interest in the presale unit is registered at the Land Title Office, typically upon completion rather than at the time of signing the presale agreement. Purchasers of newly built strata units may qualify for the Newly Built Home Exemption if the property's fair market value falls within the threshold — consult the current BC Ministry of Finance guidance for the exact 2026 threshold. First-time buyers may also explore the First-Time Home Buyers' Program exemption, subject to its own eligibility criteria and value thresholds under the Property Transfer Tax Act.

Under REDMA, a purchaser who was not provided with a proper Disclosure Statement, or who received a materially deficient one, may have the right to rescind the purchase agreement and obtain a full refund of any deposit paid. The BCFSA has enforcement authority under REDMA and can investigate complaints, issue compliance orders, and impose administrative penalties on developers who breach the Act's disclosure requirements. Purchasers with concerns about a developer's compliance with REDMA are encouraged to contact the BCFSA directly and may also wish to seek independent legal advice.