Pre-Sale Buyer Rights in BC
You've found a pre-sale multiplex home you want to buy. Before you sign, you should understand your legal rights as a buyer. BC's Real Estate Development Marketing Act, called REDMA, gives buyers in larger buildings protections that most people learn about only when they need them, and a smaller building comes under a different rule. This guide explains both in plain language.
Questions about this guide: Gary Paul, REALTOR®, Personal Real Estate Corporation, Grand Central Realty, 778-828-7476
Key Topics
The Disclosure Statement Is Your Starting Point
REDMA requires the seller to give you a disclosure statement before you sign. It describes the project, the seller, the deposit terms, and more. Since April 1, 2025, new ones start with a one-page summary form from the BC Financial Services Authority. Your 7 days to cancel start only once you have signed the agreement and signed that you had a chance to read the statement.
You Have 7 Days to Walk Away at No Cost
After you sign a pre-sale agreement and acknowledge the disclosure statement, you have 7 days to cancel for any reason. No explanation required. No cancellation fee. Your full deposit must be returned. Use this time to have a BC real estate lawyer review everything.
Your Deposit Goes Into Trust
REDMA requires your deposit to be held in trust by a real estate brokerage, a lawyer or a notary. It is normally released to the seller only once your home is finished, approved for living in and registered in your name. The exception: a seller with a deposit protection contract from an insurer may use deposits for the project once your 7 days have passed.
Changes Must Be Disclosed
If a change makes the disclosure statement wrong or incomplete, the seller must file an amendment and give you a copy. Receiving it gives you no new 7-day window. If you were entitled to an amendment about a material fact and never received it, you may be able to cancel up to one year after title passes to you.
REDMA Has a Size Threshold
REDMA covers a building with 5 or more strata lots. A duplex, triplex or fourplex sold as 4 or fewer strata homes falls outside it, so there is no disclosure statement and no 7-day right. The 3-day Home Buyer Rescission Period applies instead. Ask your REALTOR® and a BC real estate lawyer which rule covers your project before you sign anything.
Use the 7 Days for a Lawyer Review
Pre-sale contracts are long documents written by the seller's lawyers. The 7-day window gives you time to have an independent lawyer review both the disclosure statement and the purchase agreement before you are committed. Book the lawyer before you sign, so the review fits inside the 7 days.
What Is REDMA?
REDMA, BC's Real Estate Development Marketing Act, is a provincial law that governs how new homes can be marketed and sold before they are finished. For a building with 5 or more strata lots, it requires the seller to give you a disclosure statement, hold your deposit in trust, and give you 7 days to cancel.
The size line comes from section 1 of the Act. A duplex, triplex or fourplex sold as 4 or fewer strata homes falls outside REDMA, and the 3-day Home Buyer Rescission Period applies instead. Your REALTOR® and a BC real estate lawyer can confirm which rules apply to your project before you sign.
The seller must file a disclosure statement with the Superintendent of Real Estate and give you a copy before you sign. It describes the project, the seller, the strata plan, the deposit terms, and more. You sign a statement that you had a chance to read it.
Your deposit must be placed in a trust account held by a brokerage, a lawyer or a notary. A seller that buys a deposit protection contract from an insurer may use deposits for the project once your right to cancel has ended.
If a change makes the disclosure statement wrong or incomplete, the seller must file an amendment and give you a copy. An amendment does not restart your 7 days, so read each one as soon as it arrives.
Sources: Real Estate Development Marketing Act (SBC 2004, c. 41), sections 1, 14, 15, 16, 18, 19 and 21 (BC Laws, current to September 22, 2026, read October 9, 2026). Property Law Act, section 42.
The 7-Day Rescission Right
Under REDMA, once you have signed a purchase agreement and signed that you had a chance to read the disclosure statement, you have 7 days to cancel for any reason. No explanation needed. No fee. Your full deposit back.
When the 7 days starts
The clock starts on whichever happens later: the date the purchase agreement was made, or the date you signed that you had a chance to read the disclosure statement. Both must happen before the window opens.
No reason required
You do not need to give the seller any reason to cancel. Changed your mind, found a better option, or want more time: all valid. You cancel by serving written notice on the seller.
No rescission fee
REDMA charges you nothing to cancel within the 7 days. The 3-day Home Buyer Rescission Period, which covers purchases outside REDMA, costs 0.25% of the purchase price if you use it.
Your full deposit is returned
When you cancel within the 7 days, the seller must tell the person holding your deposit, and that person must promptly return it to you (section 21).
Use the window for a lawyer review
The 7 days give you time to have a BC real estate lawyer review the disclosure statement and the purchase agreement before you are committed. In our view, this review is worth paying for on every pre-sale.
Sources: Real Estate Development Marketing Act, sections 15 and 21 (BC Laws). Home Buyer Rescission Period Regulation, B.C. Reg. 175/2022 (BC Laws). Read October 9, 2026.
How Your Deposit Is Protected
Here is what REDMA requires for a deposit on a home in a building of 5 or more strata lots, and the one exception to know about.
Held in a trust account
The seller must promptly place your deposit with a real estate brokerage, a lawyer or a notary, who holds it in a trust account at a savings institution in BC. The trustee holds it for both you and the seller (section 18).
Released only when conditions are met
Normally the trustee releases the deposit to the seller only once your right to cancel has ended, the strata plan is filed, the home is approved for living in, and your title is registered (section 18).
The exception: deposit protection contracts
A seller that buys a deposit protection contract from an insurer may take deposits out of trust once buyers' right to cancel has ended, and use them for the project, including building and marketing it (section 19). The seller must tell you if it does. Ask your lawyer what the insurance covers.
Returned in full if you cancel in time
If you cancel within the 7 days, the person holding your deposit must promptly return it (section 21). If you later fail to pay the next deposit or the balance and your contract allows it, the seller can cancel and keep the deposit (section 18).
Sources: Real Estate Development Marketing Act, sections 18, 19 and 21 (BC Laws, current to September 22, 2026, read October 9, 2026).
Your Rights When the Seller Changes the Project
Pre-sale projects can change before they are finished. REDMA requires the seller to tell you about changes that matter, and gives you a remedy if it does not.
What counts as a material fact
Anything that affects, or could reasonably be expected to affect, the value, price or use of your home or the project
The identity of the seller
A receiver, liquidator or bankruptcy trustee being appointed for the seller
For example: a smaller home, a lost parking stall or storage room, or a later completion date than disclosed
What happens when a material fact changes
If a change makes the disclosure statement wrong or incomplete, the seller must file an amendment with the Superintendent of Real Estate and give a copy to every buyer who has not yet received title (section 16).
Receiving an amendment does not give you a new 7 days to cancel (section 21). Read each amendment when it arrives and ask your lawyer what it changes for you.
If you were entitled to an amendment about a material fact that was relevant to your decision to buy, and you never received it, you may cancel up to one year after title passes to you (section 21). If you think this has happened, contact a BC real estate lawyer.
Sources: Real Estate Development Marketing Act, sections 1, 16 and 21 (BC Laws, read October 9, 2026).
What to Do Before You Sign
Knowing your rights helps only if you act on them before you sign.
Read the disclosure statement before signing
In a building of 5 or more strata lots, the seller must give you the disclosure statement before it signs a purchase agreement with you (section 15). Since April 1, 2025, new ones start with BCFSA's Summary of Pre-sale Risks and Buyer Rights. Read both. If you are pushed to sign without them, treat that as a warning sign.
Hire a BC real estate lawyer
Have an independent lawyer review the disclosure statement and the purchase agreement. In our view, this is the most important step you can take. A lawyer can advise on legal terms that your REALTOR® cannot.
Confirm where the deposit will be held
The disclosure statement should name who holds your deposit in trust, and say whether the seller has a deposit protection contract that lets it use the money. If it is unclear, ask your lawyer and your REALTOR® before you sign.
Ask whether REDMA applies to this project
REDMA applies to a building with 5 or more strata lots. If you are buying in a duplex, triplex or fourplex of 4 or fewer strata homes, ask your REALTOR® and lawyer which right to cancel applies. The answer decides whether you have 7 days at no cost or 3 business days at 0.25% of the price.
Check the seller's track record
Look up the builder in BC Housing's public registry of licensed residential builders (bchousing.org) and check their previous projects. Ask your REALTOR® how their past projects went.
Read the cancellation clause carefully
Find the cancellation clause in the purchase agreement and confirm it matches the law: 7 days under REDMA, or 3 business days under the Property Law Act. The disclosure statement must set out the REDMA right, and the 3-day right cannot be waived. If the contract tries to shorten either one, have your lawyer deal with it.
Sources: Real Estate Development Marketing Act, section 15. BCFSA, “Consumer Disclosure Pre-sale Summary Form” (archived copy of December 13, 2025, read October 9, 2026). BC Housing, Public Registry of Licensed Residential Builders.
The 3-Day vs 7-Day Rescission Right
BC has two separate rights to cancel a home purchase. Only one applies to any one contract. Here is how they compare.
| Factor | REDMA: 7 Days | Home Buyer Rescission Period: 3 Days |
|---|---|---|
| Length | 7 days | 3 business days (Saturdays and holidays do not count) |
| Cost to cancel | Nothing | 0.25% of the purchase price, paid from your deposit |
| Applies to | Homes in a building with 5 or more strata lots, sold under a disclosure statement | Houses, duplex homes, townhouses and strata homes, unless REDMA's 7-day right applies |
| Reason required | No | No |
| When it starts | The later of the agreement date and your signed acknowledgment of the disclosure statement | The date the acceptance of the offer was signed |
| Where the rule is written | The disclosure statement must set out this right (section 14) | It cannot be waived (regulation, section 7) |
Sources: Real Estate Development Marketing Act, sections 1, 14 and 21. Property Law Act, section 42. Home Buyer Rescission Period Regulation, B.C. Reg. 175/2022, sections 2 to 7. All on BC Laws, read October 9, 2026.
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A note on this guide
Knowing your rights before you sign is the most practical thing you can do as a pre-sale buyer. The 7 days to cancel, the trust rules for deposits, and the duty to disclose changes are protections BC law gives you, and they work best when you use them before a problem arises.
A good REALTOR® will walk you through the pre-sale process and point out anything unusual in the contract. A BC real estate lawyer will review the disclosure statement and the agreement itself. Together, they are your best protection against surprises.
Browse pre-sale multiplex projects in Vancouver or Burnaby, or talk to our team and we will help you find the right project and connect you with a trusted REALTOR®.
This page provides general information only. It is not legal advice. Which rules apply depends on the number of strata lots in the building and on your contract terms. Before signing any pre-sale agreement, consult a BC real estate lawyer and a licensed REALTOR®.
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Key Takeaways
- In a building with 5 or more strata lots, you have 7 days to cancel a pre-sale contract after signing, with no reason required and no fee, under REDMA.
- Your deposit must be held in trust by a brokerage, lawyer or notary, unless the seller has a deposit protection contract that lets it use the money.
- An amendment to the disclosure statement does not restart your 7 days. Not receiving one you were entitled to can give you a right to cancel.
- A duplex, triplex or fourplex of 4 or fewer strata homes falls outside REDMA. The 3-day Home Buyer Rescission Period, which costs 0.25% of the price, applies instead.
- Since April 1, 2025, new disclosure statements start with BCFSA's Summary of Pre-sale Risks and Buyer Rights form.
- Use the 7 days to have a BC real estate lawyer review the contract and the disclosure statement.
Frequently Asked Questions
What is REDMA in BC?
REDMA is British Columbia's Real Estate Development Marketing Act, the law that controls how new homes are sold before they are finished. Under section 1, it covers a "development property", which for strata homes means a building with 5 or more strata lots. For those homes, the seller must file a disclosure statement with the Superintendent of Real Estate, give you a copy before you sign, place your deposit in trust, and give you 7 days to cancel.
How long do I have to cancel a pre-sale contract in BC?
Seven days, under section 21 of BC's Real Estate Development Marketing Act. The 7 days count from the later of two dates: the day the purchase agreement was made, and the day you signed a written statement that you had a chance to read the disclosure statement. You cancel by serving written notice on the seller. You need no reason, and the person holding your deposit must then return it to you promptly. This right covers buildings with 5 or more strata lots.
Is my pre-sale deposit protected in BC?
Your deposit must go into a trust account held by a real estate brokerage, a lawyer or a notary, under section 18 of BC's Real Estate Development Marketing Act. It is normally released to the seller only after your 7 days have passed, the strata plan is filed, the home is approved for living in, and your title is registered. The exception is section 19: a seller with a deposit protection contract from an insurer may use deposits for the project once your right to cancel has ended. Ask which applies to yours.
What is a material change in a pre-sale contract?
BC's Real Estate Development Marketing Act uses the term "material fact": anything that affects, or could reasonably be expected to affect, the value, price or use of the home, plus the identity of the seller or a receiver or bankruptcy trustee being appointed for it (section 1). When a change makes the disclosure statement wrong or incomplete, the seller must file an amendment and give a copy to every buyer who has not yet received title (section 16). Receiving an amendment does not restart your 7 days to cancel (section 21).
Does REDMA apply to duplexes and triplexes?
Only when the building has 5 or more strata lots. BC's Real Estate Development Marketing Act defines a development property as, among other things, 5 or more strata lots in a stratified building (section 1). A duplex, triplex or fourplex sold as 4 or fewer strata homes falls outside it, so the seller files no disclosure statement and the 7-day right does not apply. The 3-day Home Buyer Rescission Period under the Property Law Act covers duplex homes and strata homes in that case, at a cost of 0.25% of the price.
What is the Summary of Pre-sale Risks and Buyer Rights?
The Summary of Pre-sale Risks and Buyer Rights is a short form from the BC Financial Services Authority (BCFSA) that sits in front of the cover page of a pre-sale disclosure statement. According to BCFSA, sellers must attach it to new disclosure statements filed from April 1, 2025, where BCFSA's Policy Statement 14 applies. It highlights the key terms of the disclosure statement and purchase agreement, points you to the sections to read, and encourages you to get professional advice. Disclosure statements filed before that date do not need it.
What is the 3-day Home Buyer Rescission Period in BC?
The Home Buyer Rescission Period lets you cancel the purchase of a home in BC within 3 business days after the acceptance of your offer is signed, under section 42 of the Property Law Act. Saturdays and holidays do not count. If you cancel, you pay the seller 0.25% of the price from your deposit, which is $3,500 on a $1,400,000 home, and the rest comes back to you (Home Buyer Rescission Period Regulation). You cannot waive this right. It does not apply where REDMA's 7-day right applies.
Can I cancel a pre-sale after the 7 days have passed?
In two cases, yes, under section 21 of BC's Real Estate Development Marketing Act. If you were entitled to a disclosure statement and never received one, you may cancel at any time. If you were entitled to an amendment about a material fact that was relevant to your decision to buy, and never received it, you may cancel up to one year after title passes to you. In both cases you serve written notice on the seller. Outside those cases, your purchase agreement sets what happens next.
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