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Consultation Begins to Enhance Real Estate Developer Consumer Disclosures
BCFSA has opened a consultation on a new Real Estate Development Marketing Act (“REDMA”) pre-sale consumer disclosures summary form.
The consumer disclosures summary form will provide greater transparency and more direct access to information to consumers considering pre-sale residential units.
Buying a home is one of the biggest financial decisions that an individual will make in their lifetime, and it is vital that buyers understand their rights before and after they have entered into an agreement to purchase a pre-sale residential unit.
A pre-sale consumer disclosures summary form will be an additional disclosure obligation for developers. The form highlights or “brings forward” key information from the disclosure statement, like consumer rescission rights and other conditional events. This will provide consumers with greater transparency and comprehension of their rights under REDMA.
Throughout this consultation, BCFSA will request feedback on what information should be included in the proposed consumer disclosures summary form to best protect consumers. BCFSA will explore, if necessary, various ways of implementing requirements for a standardized summary form to be attached to any pre-sale disclosure statement.
In the first part of its consultation process, BCFSA has established a Technical Working Group (“TWG”) of key stakeholders who may be impacted by the change and can bring expert knowledge and practical experience. You can find the group members on BCFSA’s REDMA Consumer Disclosures Consultation Page. A public consultation will be held following the TWG’s feedback.
About REDMA
The Real Estate Development Marketing Act (“REDMA”) is a consumer protection statute that applies to real estate developers. REDMA establishes specific requirements for real estate developers when marketing multi-unit development properties. Before a developer can offer, sell, or lease a development unit in B.C., they generally must file a disclosure statement with BCFSA which they subsequently provide to consumers.