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Consumer Disclosure Pre-sale Summary Form
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Effective April 1, 2025, developers will be required to attach BCFSA’s new “Summary of Pre-sale Risks and Buyer Rights” form (the “summary form”) to the beginning of their disclosure statement. The summary form aims to enhance purchasers’ understanding of their rights, obligations, and the risks associated with a pre-sale purchase, under the Real Estate Development Marketing Act (“REDMA”).
Background
Under REDMA, developers are required to provide purchasers with a disclosure statement. Disclosure statements are legal documents that must accurately describe material facts about the development. However, modern development projects can be complex and can result in lengthy, complicated disclosure statements that are difficult for the average purchaser to understand.
To help purchasers understand their rights and obligations under REDMA, BCFSA has developed the summary form, which aims 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.
To ensure the summary form addresses the needs of purchasers, BCFSA engaged in consultations between February and May 2024 with a technical working group and the broader public. Overall, the summary form was generally well received, and BCFSA received valuable feedback from respondents and technical working group members.
For an overview of the consultation feedback, see our Summary of Consultation Feedback: Pre-sale Summary Form.
Summary Form Required if Policy Statement 14 is Applicable
Effective April 1, 2025, in cases where Policy Statement 14 is applicable to a new disclosure statement filed with the Superintendent, the developer must attach a copy of the completed summary form in front of the cover page of the disclosure statement. See Example A below.
For a disclosure statement filed prior to April 1, 2025:
- The developer is not required to file a disclosure statement amendment to comply with the new requirement.
- The developer is not required to attach a copy of the summary form to a previously filed disclosure statement nor to any future amendments to a previously filed disclosure statement.
For additional information on the filing process, please see our FAQs.
Phase Disclosure Statements
If a developer is filing a series of phase disclosure statements pursuant to section 15.1 of REDMA, they must attach the summary form to each initial phase disclosure statement to which Policy Statement 14 is applicable. For example, if a developer is marketing a two-phase development with each phase marketed under a separate disclosure statement, and Policy Statement 14 is applicable to each disclosure statement, each of the two-phase disclosure statements must include a summary form.
How to Fill Out the Summary of Pre-sale Risks and Buyer Rights Form
When filing the disclosure statement with the Superintendent, developers must complete the field requesting the name of the development and the two fields that reference specific sections within the disclosure statement in the “Key Risks of Purchasing Pre-Sale Development Units” and “Contractual Rights” sections, respectively.
The remaining fields in the “Contractual Rights” section, including the fields requiring a purchaser’s initials, should only be filled in or completed when the disclosure statement is provided to a purchaser.
Example A shows how a summary form should be completed when it is being submitted to the Superintendent.
Example B shows how a summary form should be completed when it has been provided to a purchaser and the purchaser has initialed the required sections.
For further guidance on how to fill out the summary form, please see our FAQs.
New Consumer Guide
To help purchasers understand the general risks involved in buying a pre-sale unit, BCFSA has published a new Consumer Guide to Pre-sale Real Estate Purchases. In addition to risks specific to the development project, pre-sale transactions come with broader challenges, such as the possibility of project delays, non-completion, or appraisal discrepancies. This guide aims to empower consumers with essential knowledge about common pre-sale risks, enabling them to navigate the purchase process with greater confidence. Follow the link below to view the new guide.