Buying a presale condo or newly built home in British Columbia involves more than choosing your finishes. You need to understand your legal rights. The Real Estate Development Marketing Act (REDMA) is the law that protects buyers of new developments in BC.
This article explains REDMA and your rights as a buyer. It is for educational purposes only and is not legal advice. If you have a real estate dispute, contact a qualified real estate lawyer.
What is REDMA?
The Real Estate Development Marketing Act (REDMA) is a BC law that controls how developers market and sell new properties. It applies to residential, commercial, and industrial projects throughout British Columbia.
The BC Financial Services Authority (BCFSA) enforces REDMA. The law ensures developers are transparent and fair when selling presale properties.
Why REDMA Matters for BC Buyers
REDMA protects you with three key safeguards:
- Disclosure Statement – Detailed information about the project
- 7-Day Cooling-Off Period – Time to cancel without penalty
- Deposit Protection – Your money is held safely in trust
These protections give you information, time, and financial security before you commit to buying.
The Disclosure Statement: What You Need to Know
Before a developer can sell units, they must file a Disclosure Statement with the BCFSA. You must receive this document before signing a contract.
What’s Inside the Disclosure Statement?
The Disclosure Statement includes:
- Project Details – Legal description, zoning, and location
- Construction Timeline – Expected completion date (also called the “drop-dead date”)
- Unit Information – Floor plans, shared amenities, and parking
- Strata Information – Bylaws and estimated monthly strata fees
- Financial Information – Budget, deposit handling, and risks
- Completion Deadline – If the developer misses this date, you can get your deposit back
Your Right to Know About Changes
If the developer makes major changes to the project, they must file an amended Disclosure Statement. Changes might include:
- Delays in construction
- Changes to floor plans or building design
- Zoning changes
- Significant cost increases
When material changes happen, the developer must notify you. You may have the right to cancel your contract and get a full refund.
The 7-Day Cooling-Off Period
REDMA gives you seven days to change your mind after signing a presale contract. This is one of the strongest buyer protections in BC real estate law.
How the Cooling-Off Period Works
Once you sign the contract and receive the Disclosure Statement, you have seven calendar days to cancel. No questions asked. No penalties.
How to Cancel Your Contract
To cancel, you must:
- Put your cancellation in writing
- Deliver it to the developer (directly or through your agent or lawyer)
- Act within seven days of receiving the Disclosure Statement
Getting Your Deposit Back
If you cancel during the cooling-off period, the developer must return your full deposit within 15 days. Most developers hold deposits in trust accounts during this time, making refunds straightforward.
This cooling-off period is different from resale home purchases, where you use subject clauses to protect yourself.
Real Estate Disputes: When Things Go Wrong
Even with REDMA protections, real estate disputes can happen. Common issues include:
- Developer missing the completion deadline
- Major changes to the project not properly disclosed
- Deposits not returned as required by law
- Misleading marketing materials
- Failure to provide proper Disclosure Statements
If you face any of these situations, document everything and contact a real estate litigation lawyer immediately.
REDMA Enforcement and Penalties in BC
Developers who violate REDMA face serious consequences:
- Administrative fines up to $250,000
- Suspension of sales and marketing activities
- Civil lawsuits from buyers
- Criminal charges for fraud or intentional misconduct
The Superintendent of Real Estate, under the BCFSA, enforces these rules and investigates complaints.
Recent Updates to the Real Estate Development Marketing Act
REDMA was introduced in 2005 and has been updated several times to strengthen buyer protection. Recent changes include:
- Broader definition of “development property”
- Required disclosure of title and utility arrangements
- Reporting requirements for presale assignments
- Higher fines for violations
- Consolidated Disclosure Statements for phased projects
These updates reflect BC’s commitment to protecting presale buyers.
Frequently Asked Questions About REDMA
What is the purpose of REDMA?
REDMA ensures buyers receive complete information and legal protection when purchasing presale properties in British Columbia.
Who must follow REDMA?
All developers marketing or selling new development properties in BC must comply with REDMA.
Can I cancel my presale contract?
Yes. You can cancel within seven days of receiving the Disclosure Statement or if material changes occur to the project.
How do I know if my Disclosure Statement is current?
Ask the developer for the latest version and confirm any amendments. Always have a lawyer review it before signing.
What happens if a developer violates REDMA?
They may face fines, license suspension, lawsuits, and criminal charges in serious cases.
What should I do if I have a real estate dispute?
Contact a real estate litigation lawyer immediately. Document all communications and keep copies of all documents.
Protect Your Rights in BC Presale Transactions
REDMA provides important protections for presale buyers in British Columbia. The law requires developers to be transparent, gives you time to reconsider, and keeps your deposits safe.
However, REDMA cannot prevent all problems. If you are considering a presale purchase or already facing a real estate dispute, professional legal advice is essential.
Need Help with a Real Estate Dispute?
If you are dealing with a presale transaction issue or have questions about your rights under REDMA, Legalbird can help. Our experienced real estate litigation lawyers understand BC real estate law and will fight to protect your interests.
Contact Legalbird today for a free 30-minute consultation. We are here to help you resolve your real estate dispute and move forward with confidence.
