What Is REDMA? A Buyer’s Guide to the Real Estate Development Marketing Act in BC
If you’re considering buying a presale condo or townhome in North Vancouver or West Vancouver, you may come across the term REDMA. But what does it actually mean — and why does it matter to you as a buyer?
The Real Estate Development Marketing Act (REDMA) is the provincial law that governs how developers market and sell most new housing developments in British Columbia. In simple terms, REDMA is there to protect consumers when purchasing a home that hasn’t been built yet.
Since presale purchases are contracts for a future home rather than an existing property, REDMA sets out strict rules for developers to ensure you have the information you need before committing to the purchase.
Disclaimer: This content is for general information only and does not constitute legal, financial, or investment advice. Always consult professionals before making a decision.
Why Does REDMA Matter for Buyers?
Buying a presale is exciting, but it also comes with unique risks: delays, design changes, or even projects that don’t move forward. REDMA is designed to balance those risks by requiring developers to be transparent.
Here are the key ways REDMA protects you:
1. Mandatory Disclosure Statement
Before a developer can market or sell homes in a project, they must file and provide buyers with a Disclosure Statement.
- This outlines critical details about the development: the number of units, proposed completion timeline, permitted uses, deposit terms, and more.
- You should read this carefully — it’s the official document that tells you what you’re actually buying.
2. Deposit Protection
Under REDMA, deposits are typically held in trust (or covered by deposit protection insurance). This means your money is safeguarded if the project doesn’t move forward.
3. Seven-Day Rescission Period
Every buyer under REDMA has a 7-day right of rescission. That means you can cancel your contract within seven days of signing — for any reason — and have your deposit returned.
4. Limits on Marketing Without Approval
A developer can’t publicly market units until REDMA requirements (like the disclosure statement) are in place. This ensures buyers aren’t making commitments without proper information.
What REDMA Doesn’t Cover
Not all presales fall under REDMA. Smaller developments (such as projects with four or fewer units) may be exempt. If you’re looking at one of these, there are a few added risks:
- No REDMA Disclosure Statement: You may not get the same level of detail or transparency.
- Deposit Handling: Deposits may not be held in trust, which means less protection if the project fails.
- Home Warranty Requirements: You’ll want to confirm the builder is licensed with BC Housing and that the project is covered by the mandatory 2-5-10 New Home Warranty.
In short, presales outside REDMA require extra diligence — and independent legal advice is strongly recommended.
REDMA Contracts vs. Resale Contracts
If you’ve bought a resale home before, presale contracts will feel very different.
- Resale contracts (like standard MLS® forms) are usually drafted with subject clauses that protect buyers. Resale buyers may also be entitled to a separate rescission right under the Home Buyer Rescission Period (HBRP) — learn more here.
- Presale contracts are written by developers and their lawyers, with terms that often favour the developer (for example, allowing them to make changes to layouts, materials, or even unit sizes).
REDMA provides some protections, but buyers still need to review the fine print carefully — ideally with a lawyer who has presale experience.
Key Risks in Presales (Even With REDMA)
Even under REDMA, buyers should be aware of the common risks:
- Project Delays or Cancellation – financing issues, labour shortages, or permitting delays can slow or stop projects.
- Financing Risks – your financial situation or lending conditions may change between contract signing and completion.
- Differences in the Final Product – developers can substitute materials or make adjustments within certain limits.
Wondering if a presale is the right choice for you? Check out our article: Is Buying a Presale Right for Me?
The Bottom Line
REDMA exists to make presale purchases in B.C. safer, but it doesn’t remove all the risks. For buyers in North Vancouver and West Vancouver, where presale homes can carry a high price tag, understanding your rights under REDMA is essential.
Thinking about buying a presale on the North Shore? Our team can walk you through what REDMA means for your specific purchase, review disclosure documents with you, and help you avoid costly surprises.