Real Estate Law
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Signed a presale condo contract in BC? You may not be locked in. If the developer had to give you a disclosure statement, you can usually cancel by written notice within 7 days, and your deposit must be returned. This guide and video walk through the rule in s. 21 of the Real Estate Development Marketing Act (REDMA), how deposits are handled, and why the 3-day home buyer rescission period in the Property Law Act does not apply. This is general information only, not legal advice.
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Many buyers think a signed presale contract in British Columbia cannot be cancelled, or that the 3-day home buyer rescission period protects them. For most presales, the rule that matters is in the Real Estate Development Marketing Act (REDMA).
Under REDMA s. 14, a developer must prepare and file a disclosure statement before marketing development units. Under s. 15(1), the developer must not enter into a purchase agreement until the purchaser has:
Under s. 21(2), whether or not title has transferred, the purchaser may rescind the purchase agreement by serving written notice on the developer within 7 days after the later of the date the agreement was made and the date the developer received that acknowledgment. Under s. 21(4), the notice must be served as the regulations require, so the way the notice is delivered matters.
Under s. 18(1), the developer must promptly place the deposit with a brokerage, lawyer, notary public or other prescribed person, to be held in trust. Under s. 21(5) and (6), after a proper rescission notice, the developer must immediately inform the deposit holder, who must promptly return the deposit to the purchaser.
Under s. 21(3), a purchaser who was entitled to a disclosure statement but never received one may rescind at any time, subject to s. 21(3.1). Because the details of that exception matter, it is worth getting advice before relying on it.
The 3-day home buyer rescission period in s. 42(1) of the Property Law Act does not apply to a contract to which s. 21 of REDMA applies (Property Law Act, s. 42(2)). For most presales, the REDMA rule is therefore the one to look at.
Before signing a presale contract, have a lawyer review the contract and the disclosure statement, and make sure you know the date the 7-day period would start and how any notice must be served. See our pages on residential real estate purchases in BC and real estate conveyancing in BC.
Sources: Real Estate Development Marketing Act, SBC 2004, c 41, ss. 14, 15, 18, 21; Property Law Act, RSBC 1996, c 377, s. 42. Laws change, so check the current version before acting.
You may be able to. If the developer had to give you a disclosure statement, you can usually cancel by written notice within 7 days under REDMA s. 21.
The Real Estate Development Marketing Act, SBC 2004, c 41. It governs how developers market development units in BC, including disclosure statements and deposits.
A document a developer must prepare and file before marketing development units (REDMA s. 14).
Under s. 15(1), only after you have received the disclosure statement, had a reasonable opportunity to read it, and signed a written acknowledgment.
Under s. 21(2), within 7 days after the later of the date the agreement was made and the date the developer received your signed acknowledgment.
No. Under s. 21(2), the right applies whether or not title has transferred.
By serving written notice on the developer, and under s. 21(4) the notice must be served as the regulations require.
Under s. 18(1), the developer must promptly place it with a brokerage, lawyer, notary public or other prescribed person, to be held in trust.
Under s. 21(5) and (6), the developer must immediately inform the deposit holder, who must promptly return the deposit to you.
Under s. 21(3), a purchaser who was entitled to one but never received it may rescind at any time, subject to s. 21(3.1).
Not to a contract to which s. 21 of REDMA applies (Property Law Act, s. 42(2)).
No. This is general information only. Every situation is different and no outcome is guaranteed.
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Buying a presale in BC, or thinking about cancelling one? Book a confidential consultation with Pax Law Corporation. You can also see our residential real estate purchase services in BC and real estate conveyancing services.
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Disclaimer: This article is general information only and is not legal advice. Every situation is different and no outcome is guaranteed. It reflects Canadian law as of the date of publication, and laws change. Past results do not predict future outcomes.
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