BC Realtor's Guide to Developer Disclosure Statements
REDMA requires developers to file a disclosure statement before marketing any presale units in BC. As a realtor, understanding what goes in that document — and what triggers a buyer's 7-day right to rescind — protects your licence and your clients.
Magnate360
May 16, 2026
What Is REDMA and Why Does It Matter to Realtors?
The Real Estate Development Marketing Act (REDMA) governs the sale of development property in BC — primarily presale strata units, bare land strata lots, and leasehold strata interests. Unlike resale transactions regulated mainly by the Real Estate Services Act (RESA), presale transactions carry additional statutory requirements that affect both developers and the realtors who market their projects.
Under REDMA, no developer may market development property or enter into a purchase agreement with a buyer until a disclosure statement has been filed with and accepted by BCFSA. The acceptance is administrative — BCFSA confirms the form is complete — not an approval of the project's merit or accuracy.
REDMA applies to developments of 5 or more strata lots or bare land strata lots being marketed at or about the same time. Smaller projects may qualify for exemptions, but most presale condo towers, townhouse complexes, and master-planned communities fall squarely within REDMA's scope.
| Development Type | REDMA Applies? | Notes |
|---|---|---|
| Presale strata condo building | Yes | Standard application — 5+ lots |
| Presale townhouse strata complex | Yes | Same rules, applies 5+ lots |
| Bare land strata subdivision | Yes | Lots marketed together |
| Leasehold strata (e.g., resort, First Nations land) | Yes | REDMA applies with modifications |
| Single-family speculation home (non-strata) | No | RESA/BCFSA guidelines apply, not REDMA |
| Resale strata unit (existing strata) | No | Standard resale rules apply |
| 4-unit or fewer project sold independently | Possible exemption | Consult legal counsel |
| Phased strata development | Yes | Each phase requires separate disclosure or amendment |
Mandatory Contents of a Disclosure Statement
REDMA and its regulations specify a comprehensive list of items that must be disclosed. The developer (or their lawyer) prepares the document, but you need to know what it contains — both to advise buyers accurately and to identify red flags.
Developer Identity and Corporate Structure
The disclosure statement must identify the developer, including all corporate entities involved in the ownership and development of the project. This includes:
- →Legal name and registered address of the developer entity
- →Names of directors and officers of the developer corporation
- →Name of any marketing agent or brokerage retained for sales
- →Identity of any related entities with financial interests in the project
- →History of prior REDMA violations, if any (developers must self-disclose)
Buyers and their agents should look closely at corporate structure. Shell companies, numbered companies with no track record, or developers with multiple prior REDMA contraventions are all signals that warrant heightened scrutiny.
Project Description and Plans
The disclosure statement must describe the development with sufficient detail that buyers understand what they are purchasing:
| Required Disclosure Element | Details Required |
|---|---|
| Location and legal description | Civic address, PID, legal description, zoning |
| Building design | Number of storeys, total strata lots, unit types and mix |
| Strata lot descriptions | Approximate sizes, layout descriptions, parking/storage assigned |
| Amenities and common property | Gym, concierge, roof deck, EV charging, bike storage — must be itemized |
| Construction materials | Exterior cladding, roofing system, glazing, structural system |
| Project permits and approvals | Building permit status, development permit, variances |
| Phasing information | If phased strata, which phase, future phases planned |
| Construction schedule | Estimated start date, estimated completion date range |
Financial Information and Project Financing
This section is often where buyers' agents find the most important risk factors. Required disclosures include:
Construction financing
Name of construction lender, amount of construction loan, whether financing is committed or conditional
Deposit protection
Mechanism for holding buyer deposits — typically trust account. Must confirm deposits are protected pending completion
Estimated strata budget
First-year operating budget for the strata corporation, broken down by expense category
Estimated strata fees
Monthly strata fees for each unit type as of first year of operation
Contingency reserve fund
Estimated initial CRF contribution per the Strata Property Act requirement (minimum 5% of first-year operating budget)
Special levies anticipated
Any known or reasonably anticipated special levies within the first year
Warranties
BC Home Owner Protection Act warranty coverage — 1-year materials/labour, 2-year mechanical, 5-year building envelope, 10-year structural
The 7-Day Rescission Right — What Every Realtor Must Know
This is the most practically important aspect of REDMA for working realtors. Section 21 of REDMA gives buyers an unconditional right to rescind their purchase agreement within 7 days of receiving the disclosure statement.
The 7-Day Rule — Key Facts
- ✓Rescission period: 7 days starting the day AFTER the buyer receives the disclosure statement
- ✓No reason required: buyer can rescind for any reason whatsoever — or no reason at all
- ✓Full deposit refund: developer must return all deposit funds within 15 days of receiving the rescission notice
- ✓Triggered again on amendment: every material amendment resets the 7-day clock for all affected buyers
- ✓Cannot be waived: any agreement purporting to waive or shorten the rescission right is void
- ✓Written notice required: rescission must be in writing and delivered to the developer or their marketing agent
Delivery and Receipt: When Does the Clock Start?
The 7-day period starts the day after the buyer receives the disclosure statement, not the day they sign the purchase agreement. This distinction matters:
| Delivery Method | When "Received" | Clock Starts |
|---|---|---|
| In person (signed acknowledgment) | Day of signature | Day after receipt |
| Email (with read receipt) | Day of confirmed opening | Day after confirmed opening |
| Email (without read receipt) | 3 days after sending (REDMA presumption) | 4 days after email sent |
| Courier or registered mail | Day of delivery confirmation | Day after delivery |
| Regular mail | 5 days after postmark | 6 days after postmark |
Best practice for developers is in-person delivery with a signed receipt — this creates an unambiguous record of when the rescission period began. As a buyer's agent, always confirm the exact delivery date and calculate the rescission deadline in writing for your client.
Material Amendments: When the 7-Day Clock Resets
A material amendment is a change to the disclosure statement that would reasonably be expected to affect a buyer's decision to purchase. When a material change occurs after buyers have signed purchase agreements, the developer must:
- 1Prepare a written amendment to the disclosure statement
- 2File the amendment with BCFSA
- 3Deliver the amendment to all buyers who have signed purchase agreements
- 4Give each buyer a new 7-day rescission window based on their receipt date
- 5Refund any deposits in full if buyers elect to rescind
What Constitutes a Material Change?
REDMA does not provide a bright-line definition — it is a facts-and-circumstances analysis. The following changes are commonly considered material:
Physical Changes
- •Significant reduction in unit size (typically >5%)
- •Loss of a major amenity (e.g., pool removed)
- •Change in building envelope/cladding materials
- •Reduction in number of parking stalls
- •Change in building height or number of units
Financial Changes
- •Strata budget increased >10%
- •First-year strata fees increased significantly
- •Construction lender changed or financing not committed
- •New special levy disclosed
- •Warranty coverage reduced
Timeline & Completion
- •Estimated completion pushed by 6+ months
- •Construction start delayed beyond disclosed window
- •Phase eliminated or deferred indefinitely
- •Change in form of ownership (strata → other)
Legal & Regulatory
- •Change in developer entity (corporate restructure)
- •New material litigation involving the project
- •Rezoning denied or variance refused
- •Building permit revoked or materially modified
- •REDMA violation finding against developer
When in doubt, developers err on the side of issuing an amendment — the cost of a missed material amendment (rescission rights for all buyers, potential BCFSA enforcement) far outweighs the administrative burden of filing. Buyer's agents should flag any project changes to their clients immediately and confirm with the developer whether an amendment is forthcoming.
Deposit Protection Requirements
Under REDMA, developers must hold buyer deposits in trust until completion. Specifically:
- ▸Who holds the trust funds: Developer's lawyer or a licensed real estate brokerage as trustee. NOT the developer directly.
- ▸Trust account requirements: Deposits must be held in a separate trust account — cannot be commingled with developer operating funds.
- ▸When deposits can be released to developer: Only at completion of the conveyance, not before. Some developers obtain surety bonds or letters of credit as alternative deposit protection.
- ▸Failure of completion: If the project fails to complete, all deposit trust funds must be returned to buyers within 15 days of the completion deadline passing.
- ▸Assignment of agreements: When a buyer assigns their purchase agreement, the deposit trust obligation transfers to the new buyer/assignee.
⚠️ Red Flag: Developer Requesting Deposits Outside Trust
Any request for deposit funds to be paid directly to the developer (not to a trust account held by a lawyer or brokerage) violates REDMA. This is a serious red flag. As a buyer's agent, advise your client not to comply, and consider whether you have a duty to report this to BCFSA.
Phased Strata Developments: Added Complexity
Large master-planned communities are typically developed in phases. Each phase is a separate strata plan registration, and REDMA's disclosure requirements apply separately to each phase:
| Issue | Disclosure Requirement | Buyer's Agent Action |
|---|---|---|
| Phase 1 buyers affected by Phase 2 construction | Phase 1 disclosure must describe anticipated Phase 2 scope and timeline | Confirm buyer understands ongoing construction impact |
| Shared amenities not yet built | Must be disclosed as future amenity with estimated completion | Document what's promised vs what exists at buyer's completion |
| Strata budget changes when later phases complete | First-year budget is for Phase 1 only; later phases change shared cost allocation | Advise buyers that strata fees may change as phases complete |
| Phase cancelled or deferred | Material amendment required if disclosed Phase 2+ is cancelled | Confirm 7-day rescission window and advise client of options |
| Master strata vs phase strata fees | Both levels of strata fees must be disclosed where applicable | Calculate total monthly strata cost including both tiers |
Realtor Obligations When Marketing Presale Developments
Whether you represent the developer (listing/developer's agent) or the buyer, REDMA and BCFSA's practice standards impose specific obligations:
If You Represent the Developer
- →Confirm a BCFSA-accepted disclosure statement is in place before any marketing activities begin — including website listings, social media posts, and presentation centre openings
- →Do not execute purchase agreements on behalf of the developer until the disclosure statement is accepted
- →Deliver the disclosure statement to buyers before or at the time of signing — confirm receipt in writing
- →Track the 7-day rescission deadline for each buyer and ensure deposit refunds are processed promptly for any rescissions
- →Notify the developer immediately of any project changes that may constitute a material amendment
- →Ensure all advertising and marketing materials are consistent with the disclosure statement — misrepresentations in marketing can trigger liability independent of REDMA
If You Represent the Buyer
- →Obtain and review the disclosure statement before advising your client to sign any purchase agreement
- →Calculate the exact rescission deadline for your client and confirm it in writing on the day of disclosure statement delivery
- →Review the strata budget carefully — compare estimated strata fees against comparable completed buildings in the area to assess whether the budget is realistic or understated
- →Verify that the developer's construction financing is committed (not merely conditional) before your client waives the rescission period
- →Confirm deposit trust arrangements — who is the trustee, which institution holds the trust account, and what is the mechanism for return if the project fails
- →Advise your client on the assignment clause — can they assign the purchase agreement, and if so, under what conditions (many developers restrict or prohibit assignment)
- →Flag any discrepancy between what the developer's sales team represents verbally and what is contained in the disclosure statement — the written disclosure governs
BCFSA Enforcement: Consequences of Non-Compliance
BCFSA actively monitors REDMA compliance and has enforcement powers that affect both developers and the realtors who market for them:
Consequences for Developers
- •Fines up to $100,000 per day (individuals) or $500,000 per day (corporations) for marketing without an accepted disclosure statement
- •Buyers may rescind purchase agreements at any time before completion if disclosure was not provided as required
- •Administrative penalties and public enforcement decisions published on BCFSA website
- •Prohibition orders preventing future marketing until compliance achieved
Consequences for Realtors
- •Licence suspension or cancellation for knowingly marketing without a proper disclosure statement
- •Fines and administrative penalties under RESA for assisting developer non-compliance
- •Liability to buyer clients for failure to advise on REDMA rights (including rescission)
- •E&O insurance coverage may be excluded for deliberate REDMA non-compliance
Reviewing the Strata Budget: Where Buyers Get Surprised
The disclosed strata budget is an estimate prepared by the developer — typically based on minimal costs, because lower projected strata fees make units easier to sell. As a buyer's agent, your job is to help your client understand whether the budget is realistic:
Amenity-heavy buildings with low strata fees
A building with a pool, gym, concierge, and rooftop terrace with strata fees under $0.40/sqft/month is almost certainly understated. Operating costs for those amenities are substantial.
Zero or minimal contingency reserve fund (CRF)
The Strata Property Act requires a minimum 10% of the annual operating budget to be contributed to the CRF each year. Developers sometimes show the legal minimum to keep fees low, but buyers should expect higher contributions in later years.
Elevator and mechanical maintenance excluded or low
High-rise buildings have significant elevator maintenance contracts. If the budget shows implausibly low mechanical maintenance, expect special levies in later years.
No insurance line item or dramatically low insurance
Strata insurance costs have increased dramatically in BC. A building without a realistic insurance budget will face a major strata fee increase in its first real year of operation.
Management fee missing
Professional strata management typically costs $30–$60 per unit per month. If no management fee appears, the budget assumes self-management — unlikely for a complex high-rise.
Assignment Provisions in Presale Purchase Agreements
Unlike resale transactions, presale purchase agreements frequently contain assignment clauses that significantly affect the buyer's ability to sell their interest before completion:
| Assignment Type | What It Means | Buyer's Agent Advice |
|---|---|---|
| No assignment permitted | Buyer cannot sell contract before completion — must take title or forfeit | Major liquidity risk — only purchase if buyer intends to complete |
| Assignment with developer consent (fees apply) | Buyer can assign only with developer approval — developer typically charges 1–2% of purchase price | Budget for assignment fee if early exit may be needed |
| Assignment with developer consent (no fee) | Less common — developer permits assignment without fee charge | Still requires developer approval, may have conditions |
| Free assignment (no developer consent required) | Buyer can assign freely — rare in current BC market | Confirm in writing; open assignment contracts trade at a premium |
| Assignment prohibited 6 months pre-completion | Common hybrid — assignment allowed until 6 months before completion, then locked | Calendar the cutoff date for client if assignment is a possibility |
The BC government has introduced assignment reporting requirements — developers must report all assignments of presale purchase agreements. Additionally, income from assignment "flips" is typically treated as business income (fully taxable), not a capital gain. Advise clients to consult their accountant before assigning a presale contract.
Practical Checklists
Buyer's Agent — Presale Due Diligence Checklist
Developer's Agent — REDMA Compliance Checklist
Explaining REDMA Protections to Buyer Clients
Script for Buyer Consultation
"Buying presale is different from buying a resale home. The law gives you some protections you don't get in a resale transaction — but they're time-limited, so we need to move quickly.
"Before you sign anything, I need to review the disclosure statement — that's the legal document the developer filed with the regulator describing the project. It covers the building design, who the developer is, how deposits are protected, and what your estimated strata fees will be.
"Once you receive the disclosure statement, you have exactly 7 days to change your mind for any reason and get your full deposit back. After that 7-day window closes, you're committed to the purchase subject to whatever conditions we've negotiated. So the next few days after you sign are critical — I'll send you a written note confirming exactly when your rescission window expires.
"Before the 7 days are up, I strongly recommend you have a real estate lawyer review the purchase agreement and disclosure statement. They'll identify any issues I might miss, and it's money well spent.
"One more thing: if the developer makes any significant changes to the project after you've signed — a major design change, a big strata fee increase, a delayed completion — they have to send you an amendment and give you another 7-day window. If that happens, call me immediately."
Key Takeaways for BC Realtors
- ✓REDMA applies to marketing and sales of 5+ strata lots — no marketing before BCFSA accepts the disclosure statement
- ✓Buyers have a 7-day unconditional rescission right after receiving the disclosure statement — it cannot be waived
- ✓Material amendments reset the 7-day clock for all buyers who have signed purchase agreements
- ✓Deposits must be held in trust — any deviation from this is a serious red flag
- ✓Strata budgets in disclosure statements are developer estimates — compare to market rates for similar completed buildings
- ✓Assignment provisions vary widely — confirm your client's liquidity options before the window closes
- ✓Phased developments have additional complexity — each phase has its own disclosure obligations
- ✓BCFSA enforcement can affect both developers and the realtors who assist non-compliant marketing
Track Presale Compliance in Magnate360
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