Pre-Sale Developments and Disclosure Statements

Pre-sales are now an indispensable tool for real estate developers in Vancouver and throughout B.C. to raise the necessary funds to transform their real estate projects into reality. Goluboff & Mazzei has a team of real estate lawyers who are very experienced in acting for pre-sale developers, lenders and purchasers. We had the unique opportunity of playing a key role in developing and implementing the practical and legal framework for bringing the concept of pre-sales to B.C. a few decades ago.

B.C. consumer protection laws apply to anyone marketing or selling in B.C. if they are marketing or selling real estate - regardless of whether the real estate or the vendor is in B.C. or somewhere else in the world. Some key parts of these laws are found in the B.C. Real Estate Development Marketing Act (REDMA).

If you are a real estate developer, it is important to know when a disclosure statement needs to be filed in B.C. Once you know you need a disclosure statement, you should ensure it is drafted clearly and thoroughly enough so that purchasers can't use it as a way to back out of their purchase. After you have filed a disclosure statement, keep it current and accurate or your purchasers could legally walk away from their purchase.

Financiers who lend to developers of pre-sale developments are also affected by the laws imposed on real estate developers. These laws are significant at all stages of financing from determining the level of pre-sales before being committed to finance a project, monitoring the ongoing construction progress and disclosure requirements to considering the implications of taking enforcement action if a developer defaults in its loan.

For purchasers of pre-sale developments, sifting through all the information unique to pre-sales can be daunting. There are many concepts to become familiar with. These include disclosure statements, recession rights, time lines, consequences for construction delays, financing, deposit insurance, new home warrantees, rental disclosure statements, property transfer taxes, and GST and new housing rebates.

Contact us to act for you in your pre-sale real estate venture.