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REDMA Strata Assignments FAQs

REDMA Strata Assignments FAQs

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Questions from Developers

  • Part 2.1 [Assignment Reporting Requirements] of the Real Estate Development Marketing Act (the “Act”) and Part 3.1 [Assignment Reporting] of the Real Estate Development Marketing Regulation (the “Regulation”). The Act and the Regulation are available at www.bclaws.ca.

  • An “assignment” means a transfer of some or all of the rights, obligations and benefits under a purchase agreement made in respect of a strata lot in a development property, whether the transfer is made by the purchaser under the purchase agreement to another person or is a subsequent transfer. See section 20.1 of the Act.

  • To support compliance with tax laws and inform the development of housing policy.

  • Any of five or more residential strata lots in a stratified building in British Columbia that are marketed for sale or for lease with a term longer than three years.

  • No.

  • Policy Statement 16 issued by the Superintendent of Real Estate. Policy Statements 1, 5, 6, 14 and 15 issued by the Superintendent also contain relevant information on the required form and content for a disclosure statement by a developer marketing residential strata lots in a stratified building. View Policy Statements on our Requirements for Marketing Real Estate Developments page.

  • Yes. See sections 4 and 5 of Policy Statement 16 and section 4 of Policy Statement 14, which set out this disclosure requirement. See also FAQ No. 6 above.

  • Yes. See section 5 of Policy Statement 16 and section 4 of Policy Statement 14, which set out this disclosure requirement. See also FAQ No. 6 above.

  • A developer that permits an assignment of a purchase agreement must comply with disclosure obligations to purchasers under the Act, the Regulation and Policy Statement 16. A developer must also to collect personal information about the identity and contact information of the purchaser and assignee, a copy of the assignment agreement, and other information. The developer must then report the collected information and records. See Part 2.1 of the Act.

  • The administrator designated under the Property Transfer Tax Act. For more information, see https://www2.gov.bc.ca/gov/content/taxes/property-taxes.

  • The information is reported online through MyLTSA at the Land Title and Survey Authority (www.myltsa.ca), and made available to the Ministry of Finance, Property Taxation Branch (https://www2.gov.bc.ca/gov/content/taxes/property-taxes). See section 20.4 of the Act.

  • Yes. There are privacy provisions, which prohibit the use or disclosure of the information except for permissible purposes specified in section 20.5 of the Act [Confidentiality].

  • Yes. The Act applies to an “assignment”, which includes second or subsequent assignments. See FAQ No. 2 above, and section 20.1 of the Act.

  • Promptly as of January 1, 2019. For example, an amendment may be filed on or before January 1, 2019 that provides disclosure effective as of January 1, 2019. Alternatively, if it is not possible to file an amendment on or before January 1, 2019, an amendment that provides disclosure effective as of January 1, 2019 may be filed as soon as possible after January 1, 2019.

  • At the time of filing any new disclosure statement on or after January 1, 2019.

  • Yes. The Act and Policy Statement 16 apply to a developer in order to be able to “market” a development property. The term “market” means: to sell or lease; to offer to sell or lease; and to engage in any transaction or other activity that will or is likely to lead to a sale or lease.

  • Yes. The developer still needs to market the strata lots in order to complete sales, and some initial sales might not complete in which case the affected strata lots could again be offered for sale. Purchasers who have not yet received strata lots might assign their purchase agreements and would benefit from the developer’s disclosure that assignment information would be collected and reported.

  • Developers are encouraged to seek legal advice on whether they can consent to assignments at a time when they have ceased marketing. The specific terms of the ceased marketing (e.g. a written undertaking by the developer to the Superintendent, or an order by the Superintendent), and the specific facts of any proposed assignment including the terms of the purchase agreement, would determine whether any particular assignment is legally permissible.

  • By making reasonable efforts in accordance with section 47.2 of the Act, and by documenting their collection efforts in the event that not all assignment information and records are collectible.

  • The Superintendent of Real Estate has enforcement powers to require compliance and, if appropriate, require marketing to cease. Additionally, the Superintendent may hold a hearing and, if appropriate, order financial penalties for non-compliance. See Part 3 of the Act.

Questions from Purchasers

  • An “assignment” means a transfer of some or all of the rights, obligations and benefits under a purchase agreement made in respect of a strata lot in a development property, whether the transfer is made by the purchaser under the purchase agreement to another person or is a subsequent transfer. See section 20.1 of the Real Estate Development Marketing Act (the “Act”). There is also a related Real Estate Development Marketing Regulation (the “Regulation”). The Act and the Regulation are available at www.bclaws.ca.

  • It depends on the specific terms of the purchase agreement that the purchaser has signed. Purchasers are encouraged to review their purchase agreement and disclosure statement and seek legal advice on whether a purchase agreement can be assigned, as well as whether any fees or other requirements apply before a developer will consent to an assignment.

  • Purchasers are encouraged to seek legal advice on whether they can assign at a time when the developer has ceased marketing. The specific terms of the ceased marketing (e.g. a written undertaking by the developer to the Superintendent, or an order by the Superintendent), and the specific facts of any proposed assignment including the terms of the purchase agreement, would determine whether any particular assignment is legally permissible.

  • It depends on the terms of the purchase agreement. Purchasers are encouraged to seek legal advice on whether a developer can ask a purchaser to pay a fee for an assignment based on the terms of the purchase agreement.

  • Personal information about the identity and contact information of the purchaser and any assignee, a copy of the assignment agreement and other information. See section 20.3 of the Act and section 10.3 of the Regulation.

  • Yes. A developer cannot permit an assignment of a purchase agreement unless the developer collects the required information from a purchaser and assignee beforehand. See section 20.3 of the Act.

  • A developer reports the information online through MyLTSA at the Land Title and Survey Authority (www.myltsa.ca), and the information is made available to the Ministry of Finance, Property Taxation Branch (https://www2.gov.bc.ca/gov/content/taxes/property-taxes). See section 20.4 of the Act.

  • Yes, there are privacy provisions with respect to how the collected information can be used. See section 20.5 of the Act.

  • It depends on the terms of the purchase agreement. Purchasers are encouraged to seek legal advice on whether they retain any obligations under the purchase agreement they have assigned.

  • No, BCFSA is not authorized to provide legal advice or enforce any contractual rights. A purchaser and any subsequent assignor may wish to consult a lawyer, and may ask a court to determine and enforce any rights that the purchaser or assignor may have.

  • A party (e.g. purchaser, assignee, subsequent assignor) may consult a lawyer regarding contractual or other remedies. A party may also make a complaint to BCFSA.