BCFSA Launches REDMA Pilot Program for Large Developments

BCFSA has launched a pilot program to enable real estate developers with projects of 100 or more development units the option of an 18-month early marketing period rather than the current 12-month period. The pilot program under the Real Estate Development Marketing Act (“REDMA”) came into effect on February 25, 2025.  

More Time to Market, Greater Buyer Confidence

Under 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. Given their complexity and size, these projects often encounter increased obstacles in obtaining required development approvals and securing financing within the prescribed marketing period. Rising construction costs and economic uncertainty have resulted in a challenging environment for large development projects.

The new pilot program extends the early marketing period to 18 months for large projects (100 or more development units), giving developers additional time to secure their financing and permits and providing greater confidence for buyers that the development they are investing in will be completed.

BCFSA is Collecting Pilot Data to Inform Future Improvements

Developers participating in the REDMA pilot will be required to share quarterly reports of sales data and market trends with BCFSA. This data will be used to evaluate the impact of longer early marketing periods 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.

Considerations for Licensees

Real estate licensees representing a developer in the pilot program or buyer clients of these developments should inform purchasers that the early marketing period has been extended from 12 months to 18 months. This extended early marketing period is intended to reduce the likelihood of developers failing to meet their REDMA requirements, thereby increasing the chances of a development being completed.

Licensees should take steps to ensure their buyer clients are aware of the extended marketing period, as buyers may be impacted if a developer is unable to obtain financing or building permits. If a project does not receive the necessary financing and building approvals, a buyer’s deposit may be tied up for an additional six months, and they may be at risk of re-entering the market under different conditions.

To confirm whether a development is participating in the pilot program and therefore has an 18-month early marketing period, buyers can refer 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.

For further information about the REDMA Pilot Program, visit the REDMA Extended Early Marketing Period Pilot webpage, or read BCFSA’s advisory.