The Real Estate Development Marketing Act (Bill 42) has passed First Reading. An unofficial copy is available at http://www.legis.gov.bc.ca/37th5th/1st_read/gov42-1.htm.
Companion legislation to the Real Estate Services Act (Bill 41), Bill 42 repeals and replaces Part 2 of the Real Estate Act regarding marketing real estate developments.
Bill 42 makes amendments to simplify and streamline how developers can market new properties, including to:
• permit developers to market property at an earlier time in the development stage;
• permit developers to file less complex disclosure statements;
• permit developers to use purchasers’ deposit monies for construction subject to arranging insurance as required by the Act;
• eliminate prospectuses;
• require that developers must not market a development unit unless they have made adequate arrangements to ensure that a purchaser of the development unit will have assurance of title, including holding title to the development unit in trust by a lawyer;
• allow purchasers who do not receive a disclosure statement the right to rescind their purchase agreements with the developer at any time;
• allow purchasers receiving disclosure statements a 7 day period in which to rescind their purchase agreements;
• provide for liability for misrepresentation by developers;
• specify the circumstances in which developers, land or transactions, or a class of any of these, can be exempted from provision of the Act; and
• increase the Superintendent of Real Estate’s enforcement powers.