The Effect Of Recent Litigation On The BC Real Estate Development Marketing Act

What is REDMA?

The British Columbia Real Estate Development Marketing Act ("REDMA") was brought in to force in 2005 primarily to protect consumers of pre-sale condominium projects against changes made by developers prior to project completion. REDMA applies to developments marketed in British Columbia, regardless of whether the property for sale is actually located in British Columbia.  It imposes obligations on developers to disclose prescribed information about their projects to purchasers and to keep purchasers aware of changes that occur after they have entered in to a purchase agreement but before construction is complete. REDMA creates special rights for purchasers that help to displace the traditional attitude of "buyer beware" in real estate transactions. This is especially important in the case of condominium pre-sales because the buyer is unable to physically inspect the property or conduct other important due diligence at the time of purchase.