Changes to Improve Transparency Within Real Estate Transactions
In an effort to make BC's real estate industry more transparent, the Office of the Superintendent of Real Estate (OSRE) has introduced additional disclosure statement requirements regarding assignments of strata purchase agreements. While these changes are targeted at developers who market strata lots in developments properties, it's important for REALTORS® who are involved in the buying and selling of stratified properties to be aware of the disclosure changes.
Policy Statement 16: Additional disclosure statement requirements
Starting January 1, 2019, there will be additional disclosure requirements for developers who market, for sale or for long-term lease, any of five or more strata lots in a proposed or existing stratified building in BC. The amendments that have been made to Real Estate Development Marketing Act (REDMA) and the Real Estate Development Marketing Regulation to reflect these changes are outlined in Policy Statement 16, which can be found here.
The additional disclosure requirements were introduced to support the creation of the Condo and Strata Assignment Integrity Register, which also comes into effect January 1, 2019. This register was created for developers to collect and report additional information about assignments of purchase agreements - you can find detailed information here.
When OSRE announced the register earlier this fall, they called for public and industry feedback on Policy Statement 16. BCREA participated in this consultation and provided OSRE with suggestions to improve the Policy, some of which were incorporated into the revised Policy Statement 16. Unfortunately, our suggestion that all developers be required to employ REALTORS® was not addressed, and we will continue to advocate for this.
What do the changes mean for REALTORS®?
REALTORS® who buy and sell strata properties must be aware of these disclosure changes. New disclosure statements filed on or after January 1, 2019 must include the additional disclosure requirements, and disclosure statements filed before January 1, 2019 must be promptly amended. In accordance with the Act, a developer must file a disclosure statement with OSRE before marketing a development.
After the Rule changes involving agency and disclosure that came into effect earlier this year, it is understandably daunting to think about incorporating more changes to disclosure requirements into your business practices. As the regulators continue to introduce changes with the intention of improving transparency within real estate transactions, we will continue to support REALTORS® with the transition and implementation of these changes.
We are currently developing a resource to assist with the new disclosure requirements and this will be made available before the changes come into effect on January 1. In the meantime, please visit the links below for more information:
- Disclosure requirements under the Act, the Regulation and Policy Statements: www.gov.bc.ca/osre.
- REDMA Information Bulletin: https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/buying-and-selling/consumer-protection/redma-policy-statements/information-bulletin-redma-18-01.pdf.
- REDMA Strata Assignments FAQs: https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/buying-and-selling/consumer-protection/redma-policy-statements/redma-assignments-qa.pdf.
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