Real estate development

How BC law treats it

Land use approvals come from local government. Outside the City of Vancouver, zoning bylaws, development permits, development variance permits and development cost charges are governed by the Local Government Act, RSBC 2015, c 1, mainly Part 14. Inside the City of Vancouver, the Vancouver Charter, SBC 1953, c 55 governs instead. Rezoning usually requires a public process and council approval, and building permits are issued separately under the local building bylaw and the BC Building Code. Title work runs through the Land Title Act, RSBC 1996, c 250: subdivision plans, statutory rights of way, restrictive covenants such as housing agreements, and the strata plan. Strata developments are created under the Strata Property Act, SBC 1998, c 43 when the strata plan is deposited at the Land Title Office. Marketing presale units requires a disclosure statement filed with the Superintendent of Real Estate before any marketing under the Real Estate Development Marketing Act, SBC 2004, c 41 (REDMA). Buyers get a statutory right to rescind within seven days after receiving the disclosure statement, and deposits must be held in trust. The Real Estate Services Act regulates licensees, not developers' disclosure. Construction is governed by the construction contracts and the Builders Lien Act, SBC 1997, c 45, including the 10 percent holdback the owner must keep (s. 4). Contaminated sites rules under the Environmental Management Act, SBC 2003, c 53 can affect approvals and liability on former industrial land.

What it means for your business

Development projects carry legal risk at every stage: a purchase contract that lacks proper due diligence conditions, a rezoning that takes longer than financing allows, a presale campaign launched before the disclosure statement is filed, or construction disputes that end in liens. Investors and joint venture partners also need clear agreements on capital calls, control and exit. Mapping the approvals, title documents and contract structure early lets a developer budget time and money realistically and avoid costly redesign or litigation. Example: A developer buys a site in East Vancouver to build a 40-unit strata building. It must obtain rezoning and a development permit under the Vancouver Charter, file a REDMA disclosure statement before marketing presales, hold deposits in trust and keep the builders lien holdback on every construction payment.

Risks and common mistakes

Applying Local Government Act rules to a City of Vancouver site that is governed by the Vancouver Charter. Marketing presale units before filing a REDMA disclosure statement. Waiving purchase conditions before confirming zoning, servicing and environmental status. Failing to keep the 10 percent builders lien holdback, which exposes the owner to paying twice. Using an informal joint venture without an agreement on capital calls, control and exit.