On July 15, 2020, the Superintendent of the Real Estate (the “Superintendent”) under the Real Estate Development Marketing Act (“REDMA”) announced that extended early marketing period for development properties that have not obtained building permits and satisfactory financing commitments will remain in effect until April 30, 2021.
In recognition of the economic hardship facing consumers and developers during the COVID-19 pandemic, the Superintendent has extended the effect of Policy Statement 17 to provide developers with continued access to the 12 month early marketing period instead of the usual nine months, effective July 15, 2020.
1. Policy Statement 17
Policy Statement 17 amends Policy Statements 5 and 6 such that:
- the estimated nine months or less date for the issuance of a building permit and for obtaining a satisfactory financing commitment is extended to 12 months or less during the applicable time periods discussed below; and
- the early marketing period is extended to no more than 12 months during the applicable time periods
(collectively, the “Extensions”).
2. Applicable Time Periods
The Extensions apply to development property marketed under:
- a disclosure statement, including any amendment, containing the Required Disclosures (as defined below), that has been filed with the Superintendent during the period beginning April 17, 2020 up to and including April 30, 2021; and
- a disclosure statement filed with the Superintendent during the period beginning June 17, 2019 up to and including April 16, 2020 for which an amendment containing the Required Disclosures has been filed.
3. Required Disclosures
The “Required Disclosures” referenced above that a disclosure statement or amendment, as applicable, must contain consist of the following:
- the extended early marketing period - the development property must be marketed for a period of no more than 12 months;
- the extended estimated date for the issuance of a building permit - this date must be 12 months or less; and
- the extended estimated date for obtaining a satisfactory financing commitment - this date must be 12 months or less.
4. Other Provisions of Policy Statements 5 and 6 Remain Unchanged
All of the other provisions in Policy Statements 5 and 6, including the rights of a purchaser to cancel a purchase agreement after 12 months under conditions specified in Policy Statements 5 and 6, remain in effect and are unchanged.