The Province introduced changes to the laws governing marketing of real estate development this year with changes to the Real Estate Development Marketing Act (REDMA”) in March and new policy statements which will become effective on October 1. My articles relating to those changes can be found here:
Real Estate Development Marketing Act – Amendments to Policy Statements
Legislative Changes to REDMA: Bringing Certainty to Real Estate Development
The final changes to the rules governing real estate marketing became effective on September 5, 2014 when new regulations under REDMA were introduced.
There had been some uncertainty with respect to who was included in the definition of “developer” in REDMA, and who had an obligation to file and sign a Disclosure Statement.
The amended regulations exempt the parties listed below from the requirement to file and sign a Disclosure Statement:
(a) a party who is the owner of land and leases the land to a developer, if that party does not offer to sell or lease, or engage in any other activity that will likely lead to a sale or lease, of a development unit to a purchaser;
(b) a party who is the owner of land and has entered into a Contract of Purchase and Sale to sell the land to a developer, if that party does not offer the to sell or lease, or engage in any other activity that will likely lead to a sale or lease, of a development unit to a purchaser;
(c) a party who has no interest in the land other than a financing charge registered on the land, and does not offer to sell or lease, or engage in any activity that will likely lead to a sale or lease, of a development unit to a purchaser.
The new regulations also clarify that a trustee holding a deposit can distribute the deposit relating to a Contract of Purchase and Sale that has been terminated on joint instructions form the developer and the purchaser.
Contact Brad at [email protected] or (250)869-1150
