What Is a Disclosure Statement for a New Development in British Columbia?

You have been handed a thick package of pages for a condo or townhouse that does not exist yet, and the sales team says it is just the disclosure statement. It is easy to skim it. It is also the main document that tells you what you are really buying.

This article explains in plain words what the document is, what it has to contain, what is worth checking and what happens if the developer changes it later. It is general information for British Columbia, not advice on your particular contract.

This article covers the law of British Columbia.

What a disclosure statement is and when it is required

The Real Estate Development Marketing Act (REDMA) applies to a developer who markets a development unit in British Columbia. A developer must not market a development unit unless it has prepared and filed a disclosure statement.

The Act is aimed at larger projects. Development property generally means land with 5 or more subdivision, bare land strata, strata, time share or leasehold units, or 2 or more cooperative interests or shared interests in land.

There are exceptions. The superintendent may exempt a person, land or transaction from all or part of Part 2 of the Act, and the regulation exempts classes such as developer-to-developer sales, leases of three years or less, and low-cost cooperative interests of $5,000 or less. If you are not sure your purchase is covered, ask a lawyer to confirm.

What the statement must contain

The statement must plainly disclose all material facts and must not contain a misrepresentation. A material fact includes a fact that affects, or could reasonably be expected to affect, the value, price or use of a development unit.

• Signatures: it must be signed by the developer, and for a corporate developer the directors must also sign unless the superintendent grants an exemption.
• Deposit insurance details: where the developer enters a deposit protection contract, the statement must give the insurer's name and business address, the developer and the date the insurance takes effect.
• Summary form: since April 1, 2025, a Summary of Pre-sale Risks and Buyer Rights form must be attached to the front of a pre-sale disclosure statement filed under REDMA Policy Statement 14, but not to statements filed earlier or to later amendments of them.

Your right to receive it before you sign

Before a purchase agreement is signed, the developer must give you the disclosure statement, allow a reasonable opportunity to read it, and obtain your written acknowledgment of receipt. Treat that acknowledgment seriously, because it affects the timing of your cancellation rights.

A purchaser can rescind (cancel) within 7 days after the later of the date of the purchase agreement and the date the developer obtained the written acknowledgment. If you were entitled to a statement and never received one, you may rescind at any time, even after title has transferred.

Filing is not approval, and amendments happen

The superintendent has no duty to assess the merits of a disclosure statement or check it for misrepresentations, so filing with BCFSA is not an endorsement.

If the developer learns that the statement is non-compliant or contains a misrepresentation, it must promptly file a new statement or an amendment and give copies to affected purchasers. Read every amendment you receive and compare it to what you were first told.

• An amendment alone does not create a rescission right if you have already received a disclosure statement.
• If you did not receive a required amendment about a material fact reasonably relevant to your decision, you may rescind if no more than one year has passed after transfer of title.
• You can sue for damages over a misrepresentation in the statement, and you are deemed to have relied on it.
• The action may not start more than 2 years after the misrepresentation first came to your knowledge.
• It is a defence if the defendant proves you knew of the misrepresentation when you received the statement.

A developer who has breached Part 2 of REDMA cannot enforce the purchase agreement against you, but that rule has exceptions. The agreement stays enforceable if no misrepresentation of a material fact reasonably relevant to you was involved, or if the developer did not know of it and corrected it by an amendment filed within 30 days of becoming aware and no later than 14 days before title is to transfer, and provided to you.

What to do next

• Ask for the full statement and any attachments before you sign anything, and keep the date you received it.
• Read the sections on price, deposit handling, use, and anything that could change the value of the unit.
• Check the deposit protection details if the developer plans to use deposits for construction.
• Keep every amendment and note what changed.
• Have a lawyer review the statement and the purchase agreement together, ideally inside the 7-day window.
• If you think the statement is inadequate, ask about a complaint to BCFSA, which can take regulatory action against developers but does not enforce your contract rights.

Frequently asked questions