Pre-Sale Buyer Rights in BC
You've found a pre-sale multiplex 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 you protections that most buyers don't know about until they need them. This guide explains what they are in plain language.
Key Topics
The Disclosure Statement Is Your Starting Point
REDMA requires developers to give you a Disclosure Statement before accepting a deposit. This document describes the project, the developer, the deposit terms, and more. Your 7-day rescission clock does not start until you have both signed the agreement AND acknowledged receiving this statement.
You Have 7 Days to Walk Away — For Free
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 window to have a BC real estate lawyer review everything.
Your Deposit Cannot Touch the Developer's Bank Account
REDMA requires all deposits to be held in a designated trust account that is completely separate from the developer's operating funds. The deposit cannot be released to the developer until specific project conditions are met. If the project fails, the trust protects your money.
Material Changes Restart Your Right to Cancel
If the developer makes a significant change to what you agreed to buy — smaller unit, removed amenity, major delay — they must tell you in writing and give you a new window to cancel. This protection applies even after your original 7-day period has ended.
REDMA Has a Size Threshold
REDMA typically applies to developments of 5 or more units. Smaller projects — a duplex, triplex, or fourplex — may have different rules. Your REALTOR® and a BC real estate lawyer can confirm which rules apply before you sign anything.
A Lawyer Review Is $800–$1,500 Well Spent
Pre-sale contracts are long, developer-drafted documents. The 7-day rescission window exists precisely so you can have an independent lawyer review both the Disclosure Statement and the purchase agreement before you are committed. Don't sign and hope for the best — use the time.
What Is REDMA?
REDMA — BC's Real Estate Development Marketing Act — is a provincial law that governs how real estate developers can market and sell properties before they are built. It requires developers to provide a Disclosure Statement, hold buyer deposits in trust, and notify buyers of any significant changes to the project.
REDMA typically applies to developments of 5 or more units. Small multiplexes — a duplex, triplex, or fourplex — may fall outside REDMA and have different disclosure rules. Your REALTOR® and a BC real estate lawyer can confirm which rules apply to your specific project before you sign.
Developers must give you a Disclosure Statement before accepting a deposit. It describes the project, the developer's background, the strata plan, deposit terms, and more. You have the right to read it before you are committed.
All deposits must be held in a designated trust account — separate from the developer's operating funds. The developer cannot use your money during construction. If the project fails, the trust protects you.
If the developer makes a significant change to the project — smaller unit, removed amenities, major delay — they must issue an amended Disclosure Statement and give you the right to cancel the contract.
Sources: BC Real Estate Development Marketing Act (RSBC 2004, Chapter 41). BCFSA pre-sale disclosure requirements (bcfsa.ca).
The 7-Day Rescission Right
Under REDMA, once you have signed a purchase agreement AND received and acknowledged the Disclosure Statement, you have 7 days to cancel for any reason. No explanation needed. No penalty. Your full deposit back.
When the 7 days starts
The clock begins on whichever happens later: the date you signed the purchase agreement, or the date you acknowledged receiving the Disclosure Statement. Both events must occur before the window opens.
No reason required
You do not need to give the developer any reason to cancel. Changed your mind, found a better option, or simply want more time — all valid. The right is unconditional.
No rescission fee
The developer cannot charge you anything to cancel within the 7-day window. This is different from the 3-day Home Buyer Rescission Period on resale properties, which costs 0.25% of the purchase price if exercised.
Your full deposit is returned
When you rescind within the 7-day window, you are entitled to your full deposit back. Because the deposit was held in trust, the developer cannot withhold it or offset it against any claimed costs.
Use the window for a lawyer review
The 7-day window exists precisely so you can have a BC real estate lawyer review the Disclosure Statement and the purchase agreement before you are committed. Budget $800–$1,500 for this review. It is almost always worth it.
Sources: BC Real Estate Development Marketing Act, s. 21. BCFSA Pre-sale Disclosure Statement requirements (bcfsa.ca).
How Your Deposit Is Protected
BC pre-sale deposit protections are stronger than in most other jurisdictions. Here is exactly what the law requires and what it means for your money.
Held in a designated trust account
Your deposit must go into a trust account that is completely separate from the developer's operating funds. A developer who uses your deposit money for their own expenses before the required conditions are met is violating REDMA.
Cannot be released until conditions are met
The developer cannot access the deposit until the project has met specific requirements. The Disclosure Statement will describe those conditions. Until then, the money stays in trust regardless of what the developer tells you.
Protected if the developer goes bankrupt
Because the deposit sits in trust — not in the developer's bank account — it is not part of the developer's assets in a bankruptcy. Trust funds are generally protected from creditors, which means your money is not at risk the way it would be if you had paid directly.
Returned in full if the project is cancelled
If the developer cancels the project, or if you exercise your rescission right within the allowed window, the full deposit must be returned to you. The developer cannot deduct administrative fees or holding costs from a refund required under REDMA.
Sources: BC Real Estate Development Marketing Act, ss. 14–17. BCFSA deposit protection rules (bcfsa.ca). People's Law School BC pre-sale buyer guide.
Your Rights When the Developer Changes the Project
Pre-sale projects sometimes change during construction. REDMA gives you rights when those changes are significant — even if your original 7-day rescission window has already closed.
What counts as a material change
Unit size significantly reduced
Key amenities removed (gym, storage, parking)
Significant construction delays beyond what was disclosed
Changes to the building layout or number of units
Changes to strata fees, rules, or governance structure
Anything that would reasonably affect whether you want to proceed
What happens when a material change occurs
The developer must issue an amended Disclosure Statement that describes what has changed. After you receive that amendment, you have a new window to rescind the contract — even if you signed the original agreement many months ago.
This protection exists because you agreed to buy a specific product. If that product changes in a significant way, the law gives you the right to decide whether you still want it. The developer cannot simply change the project and hold you to the original contract without notice.
If you believe a material change has occurred but the developer has not issued an amended Disclosure Statement, contact a BC real estate lawyer. The obligation to disclose and give you rescission rights is the developer's, not yours to chase.
Sources: BC Real Estate Development Marketing Act, s. 21(3). BCFSA material amendment guidance (bcfsa.ca).
What to Do Before You Sign
Knowing your rights is one thing. Acting on them before you sign is what actually protects you.
Request the Disclosure Statement before signing
Do not sign the purchase agreement until you have received and read the Disclosure Statement. The developer is legally required to provide it first. If they pressure you to sign without it, that is a warning sign.
Hire a BC real estate lawyer
Budget $800–$1,500 for an independent lawyer to review the Disclosure Statement and the purchase agreement. This is not optional — it is the most important thing you can do. A lawyer will spot issues that your REALTOR® cannot advise on.
Confirm the deposit trust arrangement
The Disclosure Statement should state that your deposit will be held in a designated trust account. If it does not say this clearly, ask your lawyer and your REALTOR® to clarify before you sign.
Ask whether REDMA applies to this project
REDMA typically applies to 5+ unit developments. If you are buying a duplex, triplex, or fourplex, ask your REALTOR® and lawyer which rules govern the contract. The answer affects your rescission rights.
Check the developer's track record
Look up the developer in BC Housing's licensed builder registry (bchousing.org) and check their previous projects. Ask your REALTOR® about their reputation for delivering on time and to spec.
Read the rescission clause carefully
Find the rescission clause in the purchase agreement and confirm it matches what REDMA says — 7 days, unconditional, no fee. If the contract tries to shorten or qualify this right, have your lawyer address it.
The 3-Day vs 7-Day Rescission Right
BC has two separate rescission rights for home buyers. They apply in different situations and have different costs. Here is how they compare.
| Factor | REDMA — 7 Days (Pre-Sale) | HBRP — 3 Days (Any Home) |
|---|---|---|
| Length | 7 days | 3 business days |
| Cost to exercise | Free — no penalty | 0.25% of the purchase price |
| Applies to | Pre-sale homes covered by REDMA | Any residential purchase in BC |
| Reason required | No — unconditional | No — unconditional |
| When it starts | Later of: signing date or Disclosure Statement acknowledgement | Day after the contract is signed |
| If both apply | REDMA right typically governs on pre-sales | Confirm with your REALTOR® and lawyer |
Sources: BC Real Estate Development Marketing Act, s. 21. BC Home Buyer Rescission Period Regulation (O.C. 836/2022, effective Jan 3, 2023). BCFSA buyer guidance (bcfsa.ca).
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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-day rescission window, deposit trust protection, and material change rights are real protections that BC law gives you — and they work best when you use them proactively, not after a problem arises.
The right REALTOR® will walk you through the pre-sale process and flag 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. REDMA is complex and rules vary based on project size and contract terms. Before signing any pre-sale agreement, consult a BC real estate lawyer and a licensed REALTOR®.
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Key Takeaways
- You have 7 days to cancel a pre-sale contract after signing — no reason required, no penalty under REDMA.
- Your deposit must be held in a separate trust account from the developer's own funds.
- If the developer makes a material change, you get a new right to cancel — even after the original 7-day window.
- REDMA applies to developments of 5 or more units — confirm with your REALTOR® whether it covers your specific project.
- The 7-day window is your opportunity to have a BC real estate lawyer review the contract — budget $800–$1,500 for that review.
- A separate 3-day rescission right exists for all BC real estate purchases, but the REDMA 7-day right typically applies to pre-sales instead.
Frequently Asked Questions
What is REDMA in BC?
REDMA is BC's Real Estate Development Marketing Act, which governs how developers sell properties before they are built. It requires developers to provide a Disclosure Statement, hold deposits in trust, and notify buyers of material changes.
How long do I have to cancel a pre-sale contract in BC?
Under REDMA, you have 7 days to cancel after signing and receiving the Disclosure Statement. This is an unconditional right — no reason required, no penalty.
Is my pre-sale deposit protected in BC?
Yes. REDMA requires deposits to be held in a designated trust account, separate from the developer's funds. If the developer goes bankrupt or the project is cancelled, the trust protects your deposit.
What is a material change in a pre-sale contract?
A material change is a significant change to what you agreed to buy — such as a smaller unit, removed amenities, or major delays. If a developer makes a material change, they must give you the right to rescind.
Does REDMA apply to duplexes and triplexes?
REDMA typically applies to developments of 5 or more units. Small multiplexes like duplexes, triplexes, and fourplexes may have different rules. Your REALTOR® and a BC real estate lawyer can confirm what applies to your specific project.
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