What legislation governs the marketing of developments?
The marketing of development property is governed by the Real Estate Development Marketing Act (the “Act”). You can access the full text of the Act and the accompanying Real Estate Development Marketing Regulation (the “Regulation”) on the Laws Publications — Government website.
Additionally, for a comprehensive understanding of the Act, refer to the Superintendent of Real Estate’s 15 Policy Statements, available on the Requirements for Marketing Real Estate Developments page.
What types of development property are subject to the Act?
The Act applies to “development property,” which includes:
Each type of development property is explicitly defined in section 1 of the Act.
What types of marketing activities are subject to the Act?
The Act encompasses various marketing activities, including selling, leasing, offering for sale or lease, and any activity likely to lead to a sale or lease. Refer to the detailed definition of “market” in section 1 of the Act.
In order to comply with the Act, what must a developer do before marketing a unit in a development property?
Ensuring compliance with these steps is crucial for developers looking to market their units successfully. For more details, please consult the relevant sections of the Act.
Where can a developer obtain further information about the required form and content for a Disclosure Statement?
The following Policy Statements explain the Disclosure Statement requirements for each type of development property:
See also Policy Statement 7 “Signing Disclosure Statements”.
When should a developer update its disclosure statement?
If a developer discovers that their Disclosure Statement doesn’t comply with the Act or Regulation or includes a misrepresentation, they must promptly file an Amendment. Check section 16 of the Act for details. An amendment is necessary, for instance, if a developer realizes that a material fact has been omitted, changed, or misrepresented.
When is it necessary for a developer to file a new disclosure statement instead of amending the existing one?
A new Disclosure Statement is required in case of a change in the developer’s identity or the appointment of a receiver, bankruptcy trustee, or a similar person for the developer. Refer to section 16 of the Act for more information.
What is the fee for filing a disclosure statement or an amendment?
The filing fee for a Disclosure Statement varies based on the total number of development units. Currently, the fees are $900 for up to 9 units, $1,800 for 10 to 49 units, $3,600 for 50 to 99 units, and $5,400 for 100 or more units. The current fee for filing an Amendment is a flat $600, regardless of the number of units. Payment should be made to BC Financial Services Authority. See section 13 of the Regulation for details.
Who should receive a copy of a disclosure statement and any amendments?
A developer must provide a purchaser with a copy of the filed Disclosure Statement and any filed Amendment before entering into an agreement for sale or lease. Explore section 15 of the Act for further guidance.
Must all developer deposits be placed in trust?
Absolutely. All deposits received by a developer from a purchaser or lessee must be placed in trust with a real estate brokerage, lawyer, or notary public in British Columbia, as per section 18 of the Act. If authorized deposit insurance is obtained, the trustee may release the deposit to the developer (section 19 of the Act).
What pre-marketing activities are allowed before filing a required disclosure statement?
Refer to section 2 in each of Policy Statements 1 to 3 and 8 to 11 for details on allowable pre-marketing activities before filing a required Disclosure Statement.
How soon can a developer start marketing after filing a Disclosure Statement?
A developer can commence marketing immediately after filing its Disclosure Statement, even before the Statement undergoes review by the BCFSA.
What can a developer use to market its development units?
A developer can enlist the services of a licensed real estate professional or an individual exempt from licensing requirements to market its development units. Explore the Real Estate Services Act and Regulation for licensing details.
Must a developer of new homes offer a construction warranty provided by an insurance company?
In compliance with the Homeowner Protection Act, a developer of new homes is generally required to offer a construction warranty provided by an authorized insurance company. The Disclosure Statement should briefly explain the warranty. Further information is available from BC Housing.