New pilot program
Effective February 25, 2025, BC Financial Services Authority (BCFSA) has launched a new pilot to allow eligible developers with projects containing 100 or more development units to extend their early marketing period from 12 months to 18 months for pre-sales under Policy Statements 5 (building permit) and 6 (financing/services). This means approved developers will have six additional months for marketing before facing potential purchaser rescissions.
The pilot program is subject to BCFSA approval and requires developers to share key metrics with BCFSA to allow BCFSA to assess how the extended early marketing period affects development projects in British Columbia.
Eligibility requirements for participation
- Only residential developments with 100 or more development units are eligible.
- Projects that have already commenced marketing and contain 100 or more development units are also eligible by way of an amendment to disclosure statement.
- A developer and its directors must not have any significant current or prior non-compliance with REDMA to participate.
- Developers must fill out an application form, to be approved by BCFSA and agree to share certain project-specific data to BCFSA at regular intervals throughout the 18-month period, including quarterly reports on sales and financing status, as well as a final report with feedback on the pilot program.
To participate, developers must submit an exemption request to BCFSA and developers may not utilize the exemption until the application is approved. BCFSA has indicated that they expect to honour a 10-business day response commitment, though actual response times may vary. Therefore, developers wishing to participate should apply as soon as possible to avoid marketing delays.
Developers applying for the exemption must pay a fee of CA$13,500 for the application in addition to the CA$13,500 fee for a disclosure statement filing.
BCFSA indicates that project data will be used to evaluate the impacts of the longer marketing period on consumer rights and development viability. All data will be anonymized.
New summary of pre-sale risks and buyer rights form for pre-sales
Effective April 1, 2025, all developers will be required to attach a copy of the completed Summary of Pre-Sale Risks and Buyer Rights form (the Summary Form) to the front of any new disclosure statement filed under Policy Statement 14 (pre-sales). The Summary Form calls for the developer to complete outside dates for the pre-marketing period, which ends when the buyer-rescission period starts under Policy Statements 5 and 6.
For pre-existing disclosure statements filed prior to April 1, 2025, developers are not required to file a disclosure statement amendment to comply with the new Summary Form requirement. Additionally, developers are not required to attach the Summary Form to any previously-filed disclosure statement or to any future amendments to previously-filed disclosure statements.
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