chapter 1 disclosure statements

Question 1

Which of the following statements concerning disclosure statements in British Columbia is FALSE?

1. A disclosure statement must be provided by a developer to a buyer where an offer of sale or lease relates to a time share interest in a development unit.
2. A disclosure statement must indicate that the purchaser has the right to rescind the purchase agreement by serving written notice of the rescission on the developer.
3. A disclosure statement must be in the form and include the content required by the British Columbia Financial Services Authority.
4. One of the supporting documents which must accompany the disclosure statement is a certificate from a lawyer who is a member of the Law Society of British Columbia confirming that a true copy of the disclosure statement will be delivered to the prospective purchaser or lessee.

Answer 1

Correct Answer: 4

A disclosure statement must be in the form required by BCFSA but it need not contain a certificate from a lawyer. The other options are all true.

Question 2

Correct Answer: 4

A disclosure statement must be in the form required by BCFSA but it need not contain a certificate from a lawyer. The other options are all true.

Answer 2

Correct Answer: 3

TheReal Estate Development Marketing Actrequires a developer to prepare a disclosure statement prior to selling lots in a subdivision. A bank acquiring a bankrupt developer’s rights would also be a “developer” as defined by the Act. The regulations exempt certain transactions from the disclosure requirements including where all units in a development property are sold in a single transaction.