What to check in a BC presale disclosure statement
Before a developer can market a presale project in British Columbia, they must give buyers a disclosure statement under the Real Estate Development Marketing Act (REDMA). It is the official record of the project — and it matters more than any brochure, rendering, or sales-centre conversation. Here is what to check before your 7-day rescission period runs out.
Your 7-day rescission right
After you receive the disclosure statement, you have 7 days to rescind (cancel) your purchase and get your deposit back. The clock starts when you receive the statement, not when you first visit the sales centre. Use those 7 days to have a lawyer review the document. Once the period expires, you are bound by the purchase agreement.
1. The developer
Check who the developer is, how long they have been building, and what they have completed. A developer's track record is the best evidence of whether the project will be delivered as described. If the developer is a new company created for this one project, that is not necessarily a problem — but find out who is behind it and what they have built before.
2. Title, charges, and encumbrances
The disclosure statement lists the legal title to the land and any charges or encumbrances on it, such as mortgages, easements, or rights-of-way. A mortgage on the development land is normal. What matters is that the statement explains how charges will be discharged — typically, the developer's construction mortgage is discharged from title on completion.
3. Zoning and approvals
Confirm the project has the zoning and development approvals it needs. If approvals are still pending, the statement should say so. A project that has not yet received its development permit carries more timeline risk than one that is fully approved and under construction.
4. Completion date and delay provisions
Look for the estimated completion date and the provisions that apply if it slips. The statement should explain what happens if the developer misses the estimated date — including whether you gain a right to cancel and get your deposit back after a specified delay. Vague or missing completion language is a red flag.
5. Deposit terms
Confirm the deposit schedule, who holds the deposit in trust, and the conditions under which it is returned. In BC, deposits must be held in trust by the developer's lawyer, notary, or a licensed brokerage. See our guide on how presale deposits work in BC for the full picture.
6. What is included
Check exactly what comes with your unit: parking, storage locker, appliances, finishes, and balcony or patio. Marketing materials often show upgraded finishes. The disclosure statement and purchase agreement govern what you actually get — if parking is not in the agreement, it is not included.
7. Strata fee estimates
The statement includes an estimated strata budget. Treat it as an estimate, not a promise. Strata fees commonly rise after the first year as the developer's initial budget is replaced by actual operating costs. Ask what the estimate covers and whether any costs are excluded.
8. Assignment terms
If you might sell your contract before completion, check the assignment provisions. Some developers prohibit assignments, some allow them with a fee, and some allow them freely. If assignment matters to you, confirm the terms in writing before you sign.
9. GST treatment
New homes in BC are generally subject to 5% GST, with a partial GST rebate available for homes used as a primary residence within certain price limits. The disclosure statement should state whether the quoted price includes GST. If you are buying as an investor, the rebate may not apply. Confirm the GST treatment and rebate eligibility with your accountant.
10. Material facts and risks
The statement must disclose material facts — things a reasonable buyer would want to know. Read the risk section carefully, including anything about the site, the market, construction, or the developer's financial position. If something is unclear, ask the developer for clarification in writing.
Red flags
- Completion dates described only in vague terms, with no delay or cancellation provisions.
- No clear statement of who holds the deposit in trust.
- Approvals described as "expected" with no detail on what is outstanding.
- Marketing promises (finishes, amenities, views) that do not appear in the disclosure statement or purchase agreement.
- Pressure to sign before you have had time to read the statement and get legal advice.
Marketing is not the contract
Brochures, renderings, and model suites show a vision. The disclosure statement and the purchase agreement are what bind the developer. Where they disagree, the contract governs. Never rely on a verbal promise from a sales representative — get it in writing, in the agreement.
Every project page on this site is built from the developer's own published material, with the details a disclosure statement confirms — prices and deposit structures included. See, for example, Hamilton Village Phase 2 West in Richmond and QUEENS Condos in Surrey.
This guide is general information about BC presale disclosure statements. It is not legal advice. Have a lawyer review your disclosure statement and purchase agreement within the 7-day rescission period.