On February 25, 2025, the BC Financial Services Authority (the
"BCFSA") launched a new pilot program
which extends the early marketing period from 12 to 18 months for
eligible development projects with 100 or more development units
(the "Pilot Program").
Background
Under the Real Estate Development Marketing Act
("REDMA"), a developer can market a
development project for a period of 12 months prior to securing a
building permit and a satisfactory financing commitment. If these
requirements are not met within the early marketing period, the
developer must immediately cease marketing the project and
purchasers are entitled to cancel their purchase agreement.
Rising interest rates, inflation, and other economic headwinds
have recently created a challenging environment for the residential
real estate market. Developers have faced greater difficulty
securing the necessary building permit and financing within the
early marketing period. Considering these challenges,
