blog

Recent Changes to the Real Estate Development Marketing Regulations

The Province of British Columbia has approved the amendments to the Real Estate Development Marketing Act (“REDMA”) and the Real Estate Development Marketing Regulation in order to facilitate the disclosure of information to provincial and federal authorities under the Condo and Strata Assignment Integrity Register or “CSAIR”. The changes in REDMA and the accompanying Regulation impose significant reporting requirements on developers who permit the assignment of Purchase Agreements of building strata lots. The term “assignment” has been given a broad definition in the Act to mean any change to a purchaser. This will likely include a wife adding a husband to the purchase, or an individual having his company complete the purchase.

The changes took effect on January 1, 2019 and developers need to take the steps as set out below.

Purchase Agreements

Developers must amend their Purchase Agreements to say that no assignments are permitted, or that all assignments must be consented to by the Developer and each assignor and assignee must give personal information as prescribed in the regulations.

CSAIR

Developers will be required to collect, record and report, on a quarterly basis, prescribed information of each assignor and assignee, and the details of all assignments of Purchase Agreements to an administrator designated under the Property Transfer Tax Act. To be able to report the information, developers must establish an account with the Land Title and Survey Authority of British Columbia by March 30, 2019, the end of the first reporting period required under CSAIR.

Assignment Agreements

All assignment agreements must include particulars of the assignment, including, but not limited to, the date of purchase agreement, the date of the developer’s consent to the assignment, the effective date of the assignment, any assignment fee paid to the developer and any amount paid to the assignor for the assignment. Prior to consenting to an assignment, developers must have collected the legal name, date of birth, Social Insurance Number, address and other details of all assignors and assignees of a contract of purchase and sale. The developer must retain the assignment agreement for 6 years.

Disclosure Statements

Unless a Developer has transferred all units in a project, each Disclosure Statement must be amended to set out the changes to the Purchase Agreement and the terms of assignment.

For your information, below are links to the relevant legislative changes.
http://www.bclaws.ca/civix/doc...
https://www2.gov.bc.ca/gov/content/housing-tenancy/real-estate-bc/condo-strata-assignment-integrity-register
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/buying-and-selling/consumer-protection/redma-draft-policy-statement-16-consultation.pdf


Share

Know someone in need of legal advice? Spread the word and share this on your favourite social media networks.

David L. Schaefer

David L. Schaefer

Partner

David is the senior partner in the Vernon law firm of Davidson Lawyers LLP. David graduated from the Law School of the University of Victoria in 1984 and articled with the Vancouver law firm of Bull, Housser & Tupper. Born and raised in Vernon, David returned to his home community to carry on his professional practice.

View Profile

Davidson Lawyers LLP advises in over 15 areas of law, Real Estate: Conveyancing and Mortgages being one of them. Learn more about this area of expertise and find the lawyer that's right for you.

Learn More

Share

Know someone in need of legal advice? Spread the word and share this on your favourite social media networks.

Serving our community for 100 years