April 22, 2025

As noted in previous updates, the BCFSA announced a  REDMA pilot that will allow builders with projects of 100 units or more to apply to the Authority to participate in the program if they share data with the BCFSA. This would allow builders of larger projects to extend their marketing periods and timeframes to obtain local government approvals (e.g., Building Permit issuances) and satisfactory financing commitments (including financing pre-sale requirements) by six months, so for new projects the timeframes would be extended from 12 to 18 months. 

Builders with projects that already began their marketing and filed a Disclosure Statement with the BCFSA prior to the February 25th announcement have also been able to apply to participate in the pilot and obtain a six-month extension of their early marketing period. However, the BCFSA released an Update on April 15th stating that effective that day, “… developers must apply for the REDMA Early Marketing Period - Pilot Program for Large Developments (‘Pilot’) prior to, or concurrently with, filing their disclosure statement. 

The BCFSA also stated that “Developers that filed a disclosure statement before April 15, 2025, will have a final opportunity until June 30, 2025, to apply and access the advantages of the Pilot provided they file a disclosure statement amendment and meet the data sharing requirements. This includes projects that began early marketing before the launch of the Pilot on February 25, 2025.”  However, “If a developer with an active project wishes to participate in the Pilot after June 30, 2025, the developer will be required to file a new disclosure statement.” 

For further information, the BCFSA has updated its FAQ webpage regarding the changes.   

Through the FAQs, the BCFSA has also clarified how the extension would apply to homebuyers who purchased pre-sale units prior to the builder being accepted into the pilot program by noting that “The pilot program does not alter or invalidate the existing contractual rescission rights between a purchaser and a developer that are described in Policy Statement 5 or Policy Statement 6.” This means that “Purchasers who entered into contracts before a project participates in the pilot program may have a 12-month rescission right, and purchasers who entered into contracts during a project’s participation in the pilot program may have an 18-month rescission right.”  As a result, the pilot program may not be viable for projects in respect of which marketing has already commenced, if developers need to amend the contracts of existing purchasers.  

The BCFSA also states in their FAQ that “Before marketing under the pilot program, a developer should amend their disclosure statement to disclose the 18-month rescission right for new purchasers and update the form of purchase agreement attached as an exhibit to the disclosure statement. The developer may also wish to explain that participation in the pilot program does not alter existing 12-month rescission rights for purchasers already under contract.” 

Please contact your legal counsel or the BCFSA for further information. Also, please see the following resources: 

• April 15th Update on Pilot Program for Large Real Estate Developments; 
• REDMA Extended Early Marketing Period Pilot webpage; 
• REDMA Extended Early Marketing Period Frequently Asked Questions;  and  
• REDMA Pilot Program Exemption Application Form. 

February 25, 2025

On February 25th, the BC Financial Services Authority (BCFSA) announced a Real Estate Development Marketing Act (REDMA) Pilot that will allow builders with projects of 100 units or more to extend their marketing periods and timeframes for local government approvals (e.g., Building Permit issuances) by six months. In addition, the Authority has issued a Summary of Pre-sale Risks and Buyer Rights Form, and Consumer Guide to Pre-Sale Real Estate Purchases. 

For several years, UDI and members of its Real Estate Legal Issues Committee have been diligently advocating to the BCFSA the necessity of an extension of the timeframes under Policy Statements 5 and 6 to enable larger, more complex projects to meet their pre-sale requirements and receive local government approvals. 

REDMA Pilot

The REDMA Pilot allows eligible builders to apply for a 6-month extension to the existing 12-month early marketing period, starting on February 25, 2025. New projects, and existing projects with early marketing already underway, are both eligible to apply for the Pilot. 

As part of the Pilot, builders “will be required to share data on the development project with BCFSA. Developers will submit data once a quarter, which will include both quantitative sales data and qualitative responses on market trends.” The data collected through the Pilot will provide the BCFSA with data to evaluate the impact of longer early marketing periods on consumer rights and development viability. 

Some key points to highlight about the Pilot: 

• The extension would be enabled through an amendment to a disclosure statement;
• Eligibility for phased projects is based on the development, regardless of when each phase is being marketed;
• There will be a $13,500 application fee (in addition to the existing $13,500 disclosure statement filing fee);
• The extension is contingent on builders participating in a quarterly data reporting requirement; and
• Under Section 21 of the Freedom of Information and Protection of Privacy Act, the “data on individual developments will be kept confidential and only reported in aggregate for the purposes of public reporting on the pilot.” 

Summary of Pre-sale Risks and Buyer Rights Form & Consumer Guide

As noted in previous UDI policy updates, the BCFSA has been developing a “Summary of Pre-sale Risks and Buyer Rights” form “to assist purchasers in understanding their rights and obligations under REDMA...”. It will come into effect on April 1, 2025, and is intended to: 

• “Highlight critical provisions of the disclosure statement and purchase agreement;
• Direct purchasers to relevant sections of the disclosure statement for review; and  
• Encourage purchasers to seek professional advice and to read the entire disclosure statement.” 

The BCFSA has also published a new Consumer Guide to Pre-sale Real Estate Purchases  to assist consumers. 

UDI will be providing further updates at its upcoming Tax & Legal Issues webinar in Spring 2025. We are very pleased with this afternoon’s announcement and look forward to ongoing collaboration with the BCFSA on these, and future initiatives.

Additional resources: 

• REDMA Extended Early Marketing Period Pilot webpage
• REDMA Extended Early Marketing Period Frequently Asked Questions
• REDMA Pilot Program Exemption Application Form
• Consumer Disclosure Pre-sale Summary Form webpage
• Summary of Pre-sale Risks and Buyer Rights form
• Consumer Disclosure Pre-sale Summary Form FAQs
• Consumer Guide to Pre-sale Real Estate Purchases
• REDMA Policy Statement 14
• Consultation Summary Report: Pre-sale Risks and Buyer Rights Summary Form