British Columbia Financial Services Authority launches pilot extending REDMA early marketing to 18 months for large developments and introduces new pre-sale risk summary disclosure

The British Columbia Financial Services Authority (BCFSA) has launched a pilot program that extends the Real Estate Development Marketing Act (REDMA) early marketing period for eligible large real estate development projects from 12 months to 18 months, and has also introduced a new consumer-facing disclosure requirement alongside a new pre-sale consumer guide. The pilot, effective immediately, allows developers with projects of 100 or more development units to undertake an additional six months of early marketing to help secure approvals and financing. Participating developers must submit quarterly reports to BCFSA on sales data and market trends, which will be used to evaluate the impact of the extended period and inform future policy decisions. BCFSA also flagged that an extended marketing period may mean buyer deposits could be tied up for an additional six months if financing and approvals are not obtained, and indicated that participation in the pilot will be disclosed in the project’s disclosure statement. Separately, BCFSA will require developers to complete and attach a Summary of Pre-sale Risks and Buyer Rights form to the front of disclosure statements from April 1, 2025, to highlight key information drawn from the disclosure statement and purchase agreement. BCFSA also released a Consumer Guide to Pre-sale Real Estate Purchases to support buyer understanding of pre-sale risks.