Join the Conversation: New Consumer Disclosure Form for Real Estate Developers

Real estate licensees, real estate developers, and the public are encouraged to provide feedback on BCFSA’s proposed requirement for real estate developers to include a Summary of Pre-sale Risks and Buyer Rights form at the front of their initial disclosure statement filing for pre-sale developments. The summary form is intended to provide consumers with information on key risks and contractual rights that they should consider before signing a pre-sale contract. This will help equip consumers to make informed decisions about their real estate pre-sale purchases.

Why the Summary Form Is Being Proposed

Under the Real Estate Development Marketing Act, developers are required to provide consumers with a disclosure statement. The disclosure statement is a legal document that outlines what the developer is selling and describes a purchaser’s rights to cancel their contract under various circumstances. However, the complexity and length of disclosure statements poses challenges for consumers to fully understand their rights and obligations.

BCFSA’s proposed summary form aims to address these challenges by:

• Highlighting critical provisions of the disclosure statement and purchase agreement;

• Directing purchasers to relevant sections of the disclosure statement for further review; and

• Enhancing consumer understanding, while also encouraging purchasers to seek professional advice and to thoroughly read the disclosure statement in its entirety.

Interested parties are invited to review the consultation materials on our consultation page and provide comments through an online Consultation Feedback Form. The deadline to participate is May 17, 2024.

The Consultation Feedback Form seeks input on the structure and content of the summary form and proposed amendments to Policy Statement 14.