REAL ESTATE ACT - British Columbia

1979 REAL ESTATE RS CHAP. 3 5 6

REAL ESTATE ACT [Part to be proclaimed]

CHAPTER 356

Interpretation

1. In this Act "agent" means a person who, on behalf of another, for or in expectation of a fee, gain

or reward, direct or indirect, from any person, (a) in any manner acquires or disposes of real estate; (b) in any manner offers, or attempts, to acquire or dispose of real estate; (c) negotiates or offers to negotiate a loan secured, or to be secured, by a

charge on, or transfer of, real estate; (d) collects or attempts to collect money secured by a charge on, or transfer

of, real estate, or money payable as rent for the use of real estate; (e) offers to collect money secured by a charge on, or transfer, of real estate,

or money payable as rent for the use of real estate; (f) is not exempted by the superintendent and solicits, for listing, real estate

for sale or lease; or (g) is not exempted by the superintendent and solicits or procures

publication, or promises to publish or procure the publication, of any printed advertisement or circular concerning real estate transactions,

but does not include a listing service operated by and for licensed agents; "business" means an undertaking carried on for gain or profit, but does not include an

undertaking which consists solely of the leasing of, or the granting of a licence to occupy

(a) a dwelling in, or the whole of, not more than one duplex, that is to say, a building comprising not more than 2 private dwellings; or

(b) not more than one single family dwelling house, or not more than one room or one suite of rooms in what is otherwise a single family dwelling house,

by the owner or lessee of the duplex or dwelling house; "client" means a person or body of persons on whose behalf an agent receives money

in connection with his business; "cooperative corporation" includes a corporation as defined in the Company Act that

is the owner of land, where a majority of the persons entitled to occupy all or a portion of that land, or the buildings on it, is, or is intended or entitled to become, the shareholders or owners, directly or indirectly, of that corporation;

"cooperative unit" means the interest of a person in a cooperative corporation that includes

(a) a right to use or occupy a part of the land that the cooperative corporation owns or has an interest in; or

(b) a present or future right of ownership of one or more shares of, or other evidence of ownership of, an interest in the cooperative corporation;

"council" means the Real Estate Council constituted under this Act;

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RS CHAP. 3 5 6 REAL ESTATE 28 ELIZ. 2

["customer" means a person or body of persons from whom a mobile home dealer receives money in connection with his business;]

"licensee" means a person licensed under this Act; ["mobile home" means a mobile home as defined in the Mobile Home Act;] ["mobile home dealer" means a person who acquires, disposes of, exchanges, trades,

leases or otherwise deals in mobile homes in the ordinary course of his business or pursuant to a scheme or plan for profit;]

"money" includes currency, government or bank notes, cheques, drafts, post office, express and bank money orders;

"nominee" means an individual nominated by an agent [or mobile home dealer] under section 4 of this Act;

"real estate" includes a leasehold, an estate or interest or charge less than the fee simple, [a mobile home,] a business and the goodwill and assets of it, and an interest, partnership or share in a business or in the goodwill or assets of it;

"real estate transaction" means a transaction for the acquisition, disposal, exchange or renting of real estate, or for the negotiation of a loan secured by a charge on or transfer of real estate, or for the collection of money so secured or money payable as rent for the use of real estate;

"regulations" means regulations made under this Act; "salesman" means a person, other than a nominee, employed by an agent [or mobile

home dealer], either generally or in a particular case, to do anything referred to in the definition of agent [or mobile home dealer, as the case may be];

"strata plan" means a strata plan as defined in the Condominium Act and, where the plan affects land situated without the Province, includes a condominium plan or other similar plan by whatever name it is called;

"subdivision" or "subdivided land" means land, whether the land is situated within or without the Province, that is, for the purpose of sale or lease, divided or proposed to be divided, whether by one or more divisions, into

(a) 5 or more lots, parcels or interests therein; (b) 5 or more strata lots or interests therein; or (c) 2 or more cooperative units by means of the creation, conversion,

organization or development of a cooperative corporation, but does not include land divided or proposed to be divided into lots or parcels of not less than 64.7 ha, or space leased in a commercial or industrial building or an apartment building, that is not owned wholly or partly by a strata corporation or a cooperative corporation;

"superintendent" means the Superintendent of Insurance. RS1960-330-2, 1961-54-2, 1968-46-2, 1973-147-2, 1974-77-1, [bracketed words and

definitions enacted 1977-40-50, to be proclaimed,] 1977-53-1, 1978-15-4

PART 1 Application of Act

2 . (1) This Part does not apply (a) to a liquidator, receiver, trustee in bankruptcy, or a person acting under

the authority of a court or an executor or trustee selling under the terms of a will, marriage settlement, or deed of trust;

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(b) in respect of the negotiation of a loan secured or to be secured by a mortgage, transfer or other encumbrance of real estate which is contained in any bond, debenture or debenture stock of a corporation or in a trust deed or other like instrument securing any such bond, debenture or debenture stock;

(c) to a person engaging in a real estate transaction in respect of any mine or mining property within the meaning of the Coal Act, the Mineral Act, the Mining (Placer) Act, or the Petroleum and Natural Gas Act, or in respect of the real estate comprised in any Crown grant or lease of a mineral claim under the Mineral Act, or in respect of any licence or lease under the Coal Act or the Petroleum and Natural Gas Act;

(d) to a person specifically exempted by the regulations in respect of any class of trades in real estate;

(e) to a trust company registered under Part 2 of the Trust Company Act which confines its trading in real estate to real estate which it purchases on its own account, owns or administers;

(f) to a barrister or solicitor whose name is inscribed on the rolls of barristers or solicitors in the Province, or to a person employed by him, in respect of transactions in the course of the practice of the barrister or solicitor;

(g) to a duly licensed collection agent or his employee in respect of the business of a collection agent within the meaning of the Debt Collection Act;

(h) to The Governor and Company of Adventurers of England trading into Hudson's Bay in respect of real estate owned by them;

(i) to a full time salaried employee of a principal to a real estate transaction where the employee is acting for or on behalf of his employer and complies with the regulations.

(2) The licences required by this Act are additional to any licence, registration, certificate, enrolment or qualification required by or under any other Act of the Legislature.

(3) Nothing in this Act or in the regulations passed under it authorizes any person to engage in the practice of law within the meaning of the Barristers and Solicitors Act or to act as a notary public within the meaning of the Notaries Act.

RS1960-330-3; 1961-54-3,4; 1968-46-3; 1972-58-14.

Licences required

3 . (1) No person shall act or hold himself out as an agent [or mobile home dealer] unless he is the holder of a valid and subsisting agent's licence [or mobile home dealer's licence] issued to him under this Act by the superintendent.

(2) No person shall act or hold himself out as a salesman unless he is the holder of a valid and subsisting salesman's licence issued to him under this Act by the superintendent, and unless he is employed by an agent [or mobile home dealer].

(3) No person shall, after June 30, 1961, act or hold himself out as a nominee unless he is the holder of a valid and subsisting nominee's licence issued to him under this Act by the superintendent.

(4) If it appears to the superintendent that the applicant is not a suitable person to be licensed, or that the person nominated by the applicant under section 4 is not a suitable person to exercise the rights and privileges under the licence, and that the application should be refused, the superintendent shall refuse to issue the licence.

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(5) Where the applicant is a partnership or corporation and its name is, in the opinion of the superintendent, liable to be confused with that of a licensed agent [or mobile home dealer], the superintendent may refuse to issue a licence to the applicant in that name.

RS1960-330-4, 1961-54-5, [bracketed words enacted 1977-40-50, to be proclaimed]

Application for licence

4 . (1) Application for a licence shall be made on the prescribed form to the superintendent, and a copy of the application shall be filed without delay with the council by the applicant.

(2) If the applicant for an agent's licence [or mobile home dealer's licence] is a corporation, the application shall include a nomination in writing and under the seal of the corporation of a nominee or nominees to represent the corporation.

(3) If the applicant for an agent's licence [or a mobile home dealer's licence] is a partnership, the application shall include a nomination in writing signed by each partner of a nominee or nominees to represent the partnership.

(4) If the applicant for an agent's licence [or a mobile home dealer's licence] is an individual, the application may include a nomination in writing signed by the applicant of a nominee or nominees to represent the applicant.

RS1960-330-5, 1961 54-6, [bracketed words enacted 1977-40-50, to be proclaimed]

Security

5 . Before issuing a licence, the superintendent may make inquiries and require information he thinks desirable, and shall require the furnishing of security under the Bonding Act.

RS 1960-330-6, 1965-46-17

Report of council

6 . (1) The council may, and on request shall, before the issuing, renewal or reinstatement of a licence, report to the superintendent

(a) on the qualifications of the applicant; (b) its recommendations with respect to the application.

(2) Where the council recommends that the licence not be issued, renewed or reinstated, the report shall contain the reasons in detail for the recommendation.

RS1960-330-7, 1961-54-7

Corporation nominees

7. (1) Each person nominated by a corporation or partnership to represent them shall be the representative for all purposes under this Act, and shall be subject to any inquiries made under this Act with respect to an applicant for a licence.

(2) No person may be nominated to represent a corporation, partnership or individual agent [or mobile home dealer] unless

(a) he possesses the qualifications set forth in the regulations; and (b) he is actively engaged in the business of the corporation or partnership.


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Communications privileged 8 . All replies and communications to the superintendent or to a member or

officer of the council with respect to an applicant for a licence or a licensee under this Act are absolutely privileged, and no action shall be brought against any person in respect of them.

RS1960-330-9, 1966-40-2

List of salesmen

9 . (1) An agent [or mobile home dealer] shall without delay, after the issuance of his licence, deliver to the superintendent a list of the names and addresses of the salesmen employed by him, and shall during the continuance of his licence without delay notify the superintendent of

(a) the change of address of any of the salesmen; and (b) the name and address of each new salesman employed, or of each

salesman who ceases to be employed and where a salesman ceases to be employed, the notice shall also state the reason why the salesman ceased to be employed [by the agent].

(2) If a salesman ceases to be employed by an agent [or mobile home dealer], he ceases to be entitled to act as a salesman, and his licence shall immediately be surrendered to the superintendent.

(3) The superintendent may reinstate the licence of a salesman on proof to his satisfaction that the salesman is qualified under this Act and is to be employed by a licensed agent.

RS 1960-330-10, [bracketed words m subsections (1) and (2) enacted 1977-40-50, to be proclaimed,] [bracketed words "by the agent" m subsection (1) (b) repealed 1977-40-50, to be proclaimed]

Publication of lists of licensed agents and salesmen

10 . The superintendent may publish in the Gazette a list of the names of all agents [or mobile home dealers], nominees and salesmen whose licences at the date of publication are in good standing.

RS 1960-330-11, 1961-54-9, [bracketed words enacted 1977-40-50, to be proclaimed]

Appointment of council

1 1 . (1) The Real Estate Council is continued comprising 15 agents or nominees licensed under this Act, appointed by the Lieutenant Governor in Council, holding office for 2 years or for a term fixed by the Lieutenant Governor in Council.

(2) For the purpose of this section, the Province is divided into 7 districts, namely, the County of Vancouver being District No. 1, from which there shall be appointed 6 members; the County of Victoria being District No. 2, from which there shall be appointed 2 members; the County of Nanaimo being District No. 3, from which there shall be appointed one member; the County of Westminster being District No. 4, from which there shall be appointed 3 members; the County of Kootenay being District No. 5, from which there shall be appointed one member; the County of Yale being District No. 6, from which there shall be appointed one member; and the combined Counties of Cariboo and Prince Rupert being District No. 7, from which there shall be appointed one member.

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(3) The Lieutenant Governor in Council may change the total number of members of the council, the number and boundaries of the districts, and the number of members to be appointed from each district.

(4) The chairman of the council shall be elected annually by members of the council, and the retiring chairman is eligible for re-election.

RS1960-330-12.

Election of council

1 2 . In lieu of appointing members of the council, the Lieutenant Governor in Council may provide by regulation for the election or election and appointment of members of the council.

RS1960-330-13.

Duties and powers of council

1 3 . In addition to any other powers given to it under this Act or the regulations, the council

(a) may, and on request shall, tender advice to the superintendent that he seeks in the exercise of his powers, and shall, subject to the regulations, have supervision over the educational qualifications of agents and salesmen [or mobile home dealers], and may delegate the training and examination to an appropriate department of The University of British Columbia;

(b) may provide for advanced training of agents and salesmen [or mobile home dealers] on a voluntary basis;

(c) subject to regulation, may make assessments on all licensees for the expenses of the council, including the cost of a training program;

(d) subject to regulation, may provide for examination fees to be paid by applicants in the respective classes; and

(e) may appoint committees and subcommittees, and delegate to them powers it sees fit;

(f) may publish and distribute to licensees and others information bulletins and circulars; and

(g) may expend money for education and research in the field of real estate, including the granting of scholarships, fellowships or bursaries, the establishment or extension of libraries, and the making of grants or contributions to institutions, organizations or foundations which engage in such education or research;

(h) shall have any further powers and duties for the purposes of this Act as provided by the regulations.

RS1960-330-14; 1961-54-10; 1966-40-3; [bracketed words enacted 1977-40-50, to be proclaimed].

Books, etc., to be kept

1 4 . (1) Every agent [and mobile home dealer] shall, for every real estate transaction in which he or an employee, salesman or nominee of his is engaged, keep proper books, records and accounts including, in every transaction where money is received that is required by section 15 to be paid into his trust account, a record sheet in a form prescribed by the superintendent which shall disclose

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(a) the nature of the real estate transaction; (b) a description sufficient to identify the real estate involved in the

transaction; (c) the true consideration for the real estate transaction; (d) the name and address of every party to the real estate transaction; (e) the amount of money received and details of every disbursement of it;

and (f) the amount of commission or other remuneration paid or payable to any

licensee, the name of the party paying it, and the name of every licensee who receives it.

(2) [An agent] shall have at least one deposit account in a bank, a credit union incorporated under the Credit Union Act, or in a trust company registered under the Trust Company Act and designated as a trust account both in his books and in the records of the bank, credit union or trust company.

RS1960-330-15, 1973-147-3, 1973-152-13, [bracketed words m subsection (1) enacted 1977-40-50, to be proclaimed, bracketed words m subsection (2) replaced by "Every agent and mobile home dealer" 1977-40-50, to be proclaimed,'] 1978-15-4

Payment into trust account

1 5 . (1) An agent shall, on receipt pay into his trust account (a) all money held for or received on behalf of a client or otherwise in

respect of a real estate transaction; (b) money a part of which belongs to the client and is to be held on his behalf

and part of which belongs to the agent. (2) A nominee, salesman or employee of an agent shall, on receipt, pay or deliver

to the agent by whom he is employed (a) all money held for or received on behalf of a client or otherwise in

respect of a real estate transaction; (b) money a part of which belongs to a client and is to be held on his behalf.

RSI 960-330-16, 1961-54-11, 1978-15-4

Withdrawals from trust account

16 . No money may be drawn from a trust account, except (a) money paid to or on behalf of a client from funds which have been

deposited in a trust account to the client's credit; (b) money required for payment to the agent for or on account of services

rendered to or disbursements made on behalf of a client from money belonging to the client;

(c) money paid into the trust account by mistake. (d) money paid under section 48.

RS1960-330-17, 1978-15-4

Withdrawals from dealer's accounts

17 . [(1) A mobile home dealer shall, on receipt, pay into his trust account all money received from a customer.

(2) A nominee, salesman or employee of a mobile home dealer shall, on receipt, pay or deliver to the mobile home dealer by whom he is employed all money received from a customer.

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Unless otherwise prescribed, no money may be drawn from a trust account,

(a) money paid to or on behalf of a customer from funds which have been deposited in a trust account to the customer's credit;

(b) money required for payment to the mobile home dealer from funds paid by a customer on account of the purchase price of a mobile home which has been delivered to the customer and in respect of which his interest has been registered in the mobile home registry office;

(c) money paid into the trust account by mistake; or (d) pursuant to an order of a court or the registrar.

1977-40-50, to be proclaimed ]

Exceptions

1 8 . Sections 15 and 16 do not apply to money which the agent pays into a separate trust account opened in the name of the client or other person named by the client in writing.

RS1960-330-18

Examination of books, etc.

1 9 . (1) The superintendent or any person authorized by him may, and the council or any person authorized by it, when directed by the superintendent, shall, conduct an inspection or examination of the books, records and accounts of any person believed to have been engaged in any real estate transaction at times or by persons the superintendent determines.

(2) On inspection or examination, the superintendent or the council and any person authorized in writing by the superintendent are entitled to free access to all books and account, cash, documents, bank records, vouchers, correspondence and records of every description of the person believed to have been engaged in a real estate transaction.

(3) No person shall withhold or destroy, conceal or refuse to furnish any information or thing reasonably required for the purposes of an inspection or examination under this section.

RS 1960-330-19, 1961-54-12

Inquiry by council

2 0 . (1) The council may, whether a complaint is made or not, and shall when directed by the superintendent, inquire whether a licensee has

(a) misappropriated or wrongfully converted money or other property entrusted to or received by him in his capacity as a licensee;

(b) committed a breach of this Act or the regulations or failed to comply with an order of the superintendent; or

(c) misconducted himself as a licensee. (2) For the purpose of making the inquiry, the council, or any person appointed

by it, may investigate the facts and circumstances, and may at any time make an inspection of the books, documents and records of a licensee, and the result of each investigation and inspection made shall be promptly reported to the council.

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(3) If the inquiry indicates that the licensee may be guilty of wrong doing under subsection (1), the council shall, after due notice to the licensee, conduct a hearing, consider the whole case, and report its findings and recommendations to the superintendent, who may, after making any further inquiries he considers necessary, in his discretion,

(a) dismiss the complaint; (b) cancel the licence of the licensee; (c) reprimand the licensee; (d) suspend, for a period of time he considers appropriate, the licence of the

licensee; or (e) where action is taken under paragraph (c) or (d), order the licensee to

enroll in and complete a course of studies or training prescribed by the superintendent.

(4) A hearing under this section may be conducted by a hearing committee of not fewer than 3 members of the council appointed by the council.

(5) The hearing committee may, and when directed by the superintendent shall, also comprise a judge of the County Court or a person enrolled and in good standing as a barrister under the Barristers and Solicitors Act in substitution for a member of the council or in addition to the other members of the hearing committee. The findings and recommendations of the hearing committee shall be deemed to be the findings and recommendations of the council.

(6) On a hearing respecting a mobile home the hearing committee may, and when directed by the superintendent shall, include one or more persons with special, technical or administrative knowledge of the mobile home industry.

(7) On a hearing the complainant and the licensee may be represented by counsel, and the council may retain counsel to examine or cross examine witnesses and to advise on law.

(8) The council and a hearing committee have the same powers as the Supreme Court to compel the attendance of witnesses, receive evidence under oath, and to compel the production and inspection of books, papers, documents and things; and all formal directions in that behalf may be under the hand of the chairman, the chairman of the hearing committee, or the secretary of the council.

(9) The superintendent may, whether or not an inquiry has been held or a report has been made under this section, and whether or not any complaint has been made, suspend or cancel a licence where in his opinion suspension or cancellation is in the public interest.

(10) Where a person appointed by the superintendent or by the council to examine the books and records of a licensee reports that in his opinion there has been an infraction of this Act or the regulations relating to accounts, the superintendent may immediately suspend the licence of the licensee pending the result of the inquiry under this section.

(11) The superintendent may, (a) where the licence of a person has been suspended or cancelled; (b) where disciplinary action against a person has commenced or is about to

commence under this section; or (c) where criminal proceedings or proceedings in respect of a violation of

this Act or the regulations are about to be or have been instituted against a person, which in the opinion of the superintendent are connected with or arise out of a real estate transaction,

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in writing or by telegram direct (d) any person having on deposit or under control or for safe keeping any

funds or securities of the person referred to in paragraph (a), (b) or (c) to hold the funds or securities; or

(e) the person referred to in paragraph (a), (b) or (c) (i) to refrain from withdrawing funds or securities from any other

person having any of them on deposit, under control, or for safe keeping; or

(ii) to hold the funds or securities of clients or others in his possession or control in trust for any interim receiver, custodian, trustee, receiver or liquidator, or until the superintendent in writing revokes the direction or consents to release of any particular fund or security from the direction;

but in the case of a bank, loan or trust company, the direction applies only to the offices, branches or agencies named in the direction.

(12) A person in receipt of a direction given under subsection (11), if he doubts the application of the direction to any funds or security, or if a claim is made to the funds or security by any person not named in the direction, may apply to the Supreme Court, which may direct the disposition of the funds or security and may make an order for costs that seems just.

(13) Where a hearing has been commenced by the council or a hearing committee and adjourned, the retirement from office, death, illness or inability to attend of any member of the council or hearing committee does not deprive the members or remaining members from jurisdiction to complete the hearing, consider the whole case, and report their findings and recommendations to the superintendent.

(14) The lapse or suspension of a licence by operation of law or by order or decision of the superintendent or of a court of law, or the voluntary surrender of a licence by a licensee, does not deprive the superintendent, the council, or a hearing committee of jurisdiction to proceed with any inquiry, investigation, hearing, action or disciplinary proceeding with respect to the licensee, or to do any act otherwise authorized under this Act.

(15) Where, in an action or proceeding, civil or criminal, in a court in the Province, the court finds that a licensee has been a party to or guilty of an act or omission set forth in subsection (1), the court shall promptly furnish particulars of its findings to the superintendent.

RSI 960-330-20; 1961-54-13; 1973-147-4; 1978-15-4.

Suspension

2 1 . [(1) Where a real estate agent's licence or real estate salesman's licence] is suspended or revoked, the superintendent shall notify the person whose licence is suspended or revoked and the Minister of Consumer and Corporate Affairs of the action taken.

(2) In cases where it appears that a crime has been committed, the Minister of Consumer and Corporate Affairs shall be given full particulars of the cause of the suspension or revocation.

RSI960-330-21; [bracketed words replaced by "When the licence of a licensee" 1977-40-50, to be proclaimed;} 1977-75-11.

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Appeal 2 2 . (1) An appeal lies by any person aggrieved from a decision or order of the

superintendent to the County Court of the county in which the appellant has his residence or place of business.

(2) The appellant shall, within 14 days after the decision or order complained of, give written notice of the appeal to the superintendent.

(3) On the appeal the appellant and any licensee concerned, the superintendent, and the council are entitled to appear, adduce evidence, and be heard, and the court to which the appeal is taken shall hear and determine the matter in dispute de novo.

(4) The court may affirm the decision or order and dismiss the appeal or make any order as seems just.

(5) The costs of the appeal shall be in the discretion of the court. RS1960-330-22, 1961-54-14, 1966-40-4, 1978-15-4

Licence forfeited if not used for 5 years

2 3 . [When an agent or mobile home dealer has ceased to carry on business for a period of 5 years, he ceases to be entitled to act as an agent or mobile home dealer, and his licence shall immediately be surrendered to the superintendent. If thereafter the agent or mobile home dealer applies for an agent's or mobile home dealer's licence, he shall not be required to serve a further term as a salesman but shall be required to pass the examinations prescribed for an agent or mobile home dealer and to pay the prescribed fees.

RS 1960-330-23, 1977-40-50, to be proclaimed ]

Licence forfeited if not used for 5 years

2 3 X . When an agent has ceased to carry on business for a period of 5 years, he ceases to be entitled to act as an agent, and his licence shall immediately be surrendered to the superintendent. If thereafter the agent applies for a real estate agent's licence, he shall not be required to serve a further term as a salesman but shall be required to pass the examinations prescribed for an agent and to pay the prescribed fees.

RSI960-330-23, [to be repealed on proclamation of section 23, 1977-40-50]

Salesman not to be employed by inactive agent

2 4 . No licensed agent [or mobile home dealer] who is not carrying on business as such is entitled to employ a salesman or to retain another agent [or mobile home dealer] to represent him as a salesman, and such employment or retainer shall not be taken into account as service to qualify as an agent [or mobile home dealer].


Promises to resell forbidden

2 5 . No licensee shall, as an inducement to purchase, sell or exchange real estate, make any representation or promise that he or any other person will

(a) resell, or in any way guarantee or promise to resell, any real estate offered for sale by him;

(b) purchase or sell any of the purchaser's real estate; 11


(c) procure a mortgage, extension of a mortgage, lease or extension of a lease; or

(d) purchase or sell a mortgage or procure a loan unless at the time of making the representation or promise the licensee making it delivers to the person to whom the representation or promise is made a statement signed by the licensee clearly setting forth all the details of the representation or promise made.

RSI 960-330-25; 1961-54-16.

Acceptance of offer

2 6 . When a licensee has secured a signed acceptance of an offer to sell, purchase, exchange, lease or rent real estate, he shall without delay deliver to each of the parties to the transaction a true copy of the acceptance signed by the acceptor.

RSI 960-330-26; 1961-54-17.

Breaking of contract

2 7 . No licensee shall induce any party to a contract for purchase and sale or rental of real estate to break the contract for the purpose of entering into a contract with another principal.

RS1960-330-27; 1961-54-18.

Acquisition of listed real estate by licensee

2 8 . No licensee shall, directly or indirectly, for himself or for any corporation in which he is a shareholder, director or officer, acquire, or offer to acquire, real estate unless, prior to the acquisition, or the offer, he has disclosed in writing to the owner

(a) that he is a licensee and is acquiring the real estate for himself or for such corporation;

(b) that it is his intention or that of the corporation to resell the real estate, if that is the case;

(c) that he or the corporation is about to negotiate, is negotiating, or has negotiated for the disposition of the real estate, if that is the case, giving full details of the negotiations.

RS1960-330-28; 1961-54-19; 1973-147-5; 1974-77-2.

Statements to be delivered in acquisition of business

2 9 . (1) Where a transaction with respect to a business is negotiated by a licensee, the licensee shall, before a binding agreement of purchase or sale is signed by the parties, deliver to the person acquiring the business

(a) a profit and loss statement or statement showing the revenue and expenses of the business for a period of 12 months ending not more than 120 days before the signing of the agreement, or for the period from the acquisition of the business by the person disposing of it to a date not more than 120 days before the signing of the agreement;

(b) a statement of the assets and liabilities of the business; and (c) a statement containing a list of all fixtures, goods, chattels, rights and

other assets relating to or connected with the business which are not included in the transaction;

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and every statement shall be dated and signed by the person disposing of the business or his agent lawfully authorized in that behalf.

(2) Where the licensee delivers to the person acquiring the business a statement under oath of the person disposing of the business setting forth

(a) the terms and conditions under which the person disposing of the business holds possession of the premises in which the business is being carried on;

(b) the terms and conditions under which the person disposing of the business has sublet any part of the premises in which the business is being carried on;

(c) all liabilities of the business; and (d) that the person disposing of the business has made available such books

of account of the business as he possesses for inspection by the person acquiring the business, or that the person disposing of the business has no books of account of the business, as the case may be,

the person acquiring the business may waive compliance with subsection (1) (a) and (b) by signing and delivering to the licensee a statement that he has received and read the statement under oath of the person disposing of the business.

(3) Unless the statement mentioned in subsection (1) (c) is delivered in accordance with subsection (1), all fixtures, goods, chattels and rights and other assets relating to or connected with the business shall be deemed to be included in the transaction.

(4) This section does not apply to a licensee where he is acting on behalf of a purchaser.

RSI 960-330-29; 1961-54-20; 1973-147-6; 1978-15-4.

Payment of commission to persons not licensed prohibited 3 0 . (1) No licensee, and no officer, agent or employee of a licensee, shall

directly or indirectly pay or allow, or offer or agree to pay or allow, any commission or other compensation or thing of value to any person for acting, or attempting or assuming to act, as an agent or salesman, unless at the time he so acts, or attempts or assumes to act, that person holds a licence as may be appropriate under this Act.

(2) Every person who violates any provision of this section, or who knowingly receives any commission, compensation or thing of value paid or allowed in violation of this section, commits an offence against this Act, but nothing in this section applies to the payment by a duly authorized agent to an agent duly licensed or otherwise authorized by law as such in a jurisdiction other than British Columbia of a commission or other compensation with respect to the sale of real estate in the Province.

RSI 960-330-30; 1961-54-21.

Agents not to act for unlicensed agent or salesman 3 1 . An agent shall not, in any real estate transaction, act as an agent for any

other agent or salesman who is not a principal in the transaction unless the last mentioned agent or salesman is duly licensed under this Act, or duly licensed or otherwise authorized by law in a jurisdiction other than British Columbia.

RS 1960-330-31.

13


Employment of unlicensed salesman or nominee 3 2 . An agent shall not employ or engage the salesman or nominee of another

agent or any unlicensed salesman or nominee in any real estate transaction, and no agent shall pay a commission or other remuneration to that salesman or nominee.

RS 1960-330-32; 1961-54-22.

Salesman or nominee trading for other agents

3 3 . A salesman or nominee shall not engage in a real estate transaction on behalf of an agent other than the agent who, according to the records of the superintendent, is his employer, and no salesman or nominee is entitled to or shall accept any commission or other remuneration in respect of a real estate transaction from a person except the agent who is registered as his employer.

RS1960-330-33; 1961-54-23.

Carrying on business as individual 3 4 . An agent, other than a corporation or partnership, shall carry on business in

his own name or trade name and shall not use any description, words or device that would indicate that his business is being carried on by more than one person or by a corporation, except that a surviving or remaining partner may carry on business in the name of the original partnership, but shall publish on all letterheads and circulars used by him in connection with his business the fact that he is its sole proprietor.

RS1960-330-34.

Commission and remuneration

3 5 . All commission or other remuneration payable to an agent in respect of the sale of any real estate shall be on an agreed amount or percentage of the sale price; and where no agreement as to the amount of the commission has been entered into, the rate of commission or other basis or amount of remuneration shall be that generally prevailing in the community where the real estate is situated.

RS 1960-330-35.

Certain commission agreements prohibited

3 6 . A licensee shall not request or enter into an agreement for the payment to him of commission or other remuneration based on the difference between the price at which any real estate is listed for sale and the actual sale price of it, and a licensee is not entitled to retain any commission or other remuneration so computed.

RSI 960-330-36; 1961-54-24.

Proof of licence a condition precedent to recovery of compensation

3 7 . (1) A person shall not maintain an action in any court for the recovery of compensation for any act done or expenditure incurred by him as an agent or salesman without proving that he was duly licensed under this Act as an agent or salesman, as the case may be, at the time the alleged cause of action arose.

(2) This section does not apply to an action brought against a licensed agent by an agent duly licensed or otherwise authorized by law as such in a jurisdiction other than British Columbia for the recovery of any commission or other compensation, the payment of which is not prohibited by section 30.

RS 1960-330-37.

14


Preservation of validity of contracts 3 8 . A contract is not rendered void or voidable as against a person other than the

licensee by or through whom the contract was negotiated or entered into by reason of a failure on the part of the licensee to comply with any provision of this Part.

RSI 960-330-38; 1961-54-25.

Impoundment of books and records

3 9 . The superintendent may impound the books and records of an agent whose licence has been suspended or cancelled and retain them for a period of 2 years or until the suspension has been lifted.

RS1960-330-39.

Penalties

4 0 . (1) A person who (a) makes a false statement in an application for a licence under this Act; or (b) fails to comply with a provision of this Act or a regulation made under it

or any order of the superintendent commits an offence, and, if a corporation, is liable on conviction to a penalty of not less than $100 or more than $5,000, and, if an individual, to a penalty of not less than $50 or more than $1,000. Nothing in this section precludes the taking of disciplinary action as provided in this Act.

(2) No proceeding under this Act shall be instituted more than 2 years after the facts on which the proceeding is based first came to the knowledge of the superintendent.

RS 1960-330-40; 1973-147-7.

Duties of officers and employees

4 1 . For the purposes of sections 20 and 40, (a) every director or partner, as the case may be, every officer, nominee,

employee and agent of an agent shall comply with the provisions of this Act, all regulations made under it, and all orders of the superintendent, and shall, so far as he has authority over any other person, cause him to comply with the same; and a director, partner, officer, nominee, employee or agent who fails to comply with any provision, regulation or order commits an offence;

(b) where an offence is committed by a licensee, the director, partner, officer, nominee, employee or agent in charge of the business of the agent at the place at which the offence is committed or in charge of the real estate transaction in connection with which the offence is committed is in the absence of evidence to the contrary deemed to be a party to the offence so committed and is personally liable to the penalties prescribed for the offence as a principal offender; and the records of the agent are as against the director, partner, officer, nominee, employee or agent evidence of the facts and transactions therein recorded, set out or indicated; but nothing in this section relieves the licensee or the person who actually committed the offence from liability therefor;

15


(c) an offence committed by a director or partner, an officer, nominee, employee or agent of a corporation or partnership acting as an agent is deemed to be the offence of the corporation or partnership, and the corporation or partnership is liable to the penalty for the offence; but nothing in this section absolves the actual offender from liability in respect of the offence.

RSI 960-330-41; 1961-54-26.

Action for acts done in good faith prohibited

4 2 . (1) No action shall be brought against the superintendent, or any person acting under his authority, or any member of the council, its servant or agent, for anything done in good faith by him in the performance of his duties under this Act or in pursuance, or intended or supposed pursuance, of any of the provisions of this Act.

(2) No action shall be brought or continued against any person who at any time before this Act comes into force has acted or purported to act as a member of the Real Estate Agents' Licensing Board, constituted as a board by or under the Real Estate Agents' Licensing Act, R.S.B.C. 1948, c. 189, for anything heretofore done by him in good faith in the performance of his duties under that Act or in pursuance, or intended or supposed pursuance, of any of the provisions of that Act.

RSI 960-330-42; 1974-77-3.

Filing of decisions 4 3 . All decisions of the superintendent refusing, suspending or cancelling a

licence and all reports of the council under this Act shall be kept on file in the office of the superintendent, and, subject to section 8, shall be open to public inspection.

RSI 960-330-43.

Regulations 4 4 . The Lieutenant Governor in Council may make regulations including those

to meet cases which may arise and for which no provision or no adequate provision is made in this Act, or where any provision is ambiguous or doubtful, as well as those to

(a) prescribe the powers and duties of the council and its members; (b) authorize the superintendent to exempt, and prescribe the conditions on

which he may exempt, a person from the definition of "agent" under section (1) (f) and (g);

(c) prescribe, for the purposes of section 58 (1), circumstances the superintendent shall take into account when making an order in the public interest;

(d) provide for the full time employment of salesmen; (e) provide for the regulation and control of branch offices of real estate

agents; (f) prescribe the particulars to be contained in advertisements for the

purchase, sale or exchange of real estate; (g) prescribe licence fees and their amounts and the basis on which the

amount of licence fees shall be fixed, and provide for the collection and payment of licence fees and penalties for nonpayment of licence fees;

(h) prescribe the qualifications required of an applicant for a licence under this Act and the statements and other documents to be produced by an applicant;

16


(i) provide for the instruction and education of applicants for licences and prescribe courses for that purpose;

(j) prescribe forms for use under this Act and regulations; (k) prescribe the terms of licences and permits; (1) prescribe the terms of and conditions for renewal of licences and permits;

(m) require that particulars and documents specified or prescribed be made available by agents and salesmen to parties to real estate transactions;

(n) provide for the granting of a permit to a personal representative to carry on a real estate business formerly carried on by a deceased agent, on terms and conditions set forth;

(o) prescribe the books, accounts and records to be kept by agents and salesmen and provide for inspection of them by the superintendent or his representative and for their audit;

(p) prescribe returns to be made under this Act; (q) provide for the filing of certificates of chartered accountants or certified

general accountants, in the form prescribed, respecting the books and accounts of agents;

(r) provide for public or other hearings on any matter relating to real estate business generally;

(s) provide for the compulsory filing with the superintendent of copies of documents and papers;

(t) prescribe conditions with which an employee must comply under section 2 (1) (i);

[(u) prescribe one or more classes of trades in real estate and provide for the issue of licences restricted to a prescribed class of trade;]

[(v) exempt licensees whose licences are restricted solely to trades in mobile homes from a certain provision of this Act, and instead, make regulations respecting the licensees so exempted.]

RS1960-330-45; 1961-54-27; 1966-40-5; 1972-58-14; 1973-147-8; [bracketedparagraphs enacted 1977-40-50, to be proclaimed;] 1978-15-4.

Municipal licences

4 5 . Notwithstanding anything in any general or special Act of the Legislature, a municipality may not impose on a licensee any licence fee or tax for carrying on his business unless the licensee occupies or uses premises in the municipality for carrying on his business.

1961-54-28.

Exclusive listings

4 6 . An agreement purporting to be or being an exclusive listing of real estate for sale, exchange, lease or rental is not valid unless

(a) it is in writing and a true copy is delivered to each party to it immediately after its execution; and

(b) it contains a provision that it will expire on a specified date. 1961-54-28.

Evidence of licence

4 7 . A statement as to the existence, nonexistence or status of a licence under this Act purporting to be certified by the superintendent, without proof of the office or

17


signature of the person certifying, is receivable in evidence, as far as relevant, for all purposes in any action, proceeding or prosecution.

1961-54-28.

Agents hold deposits as stakeholders 4 8 . (1) Unless there is an express agreement in writing to the contrary to which

the principals in a real estate transaction are parties, an agent who receives money in connection with a real estate transaction shall, notwithstanding any rule of law to the contrary, hold the money, subject to any claim which he may have against the money for commission or remuneration arising out of the real estate transaction, as a stakeholder and not as an agent for one of the principals.

(2) Where an agent holds money as a stakeholder, or otherwise in trust, and admits liability for it or for any part of it, and it appears to him that

(a) there are adverse claimants; (b) the place of abode of a person entitled is unknown; (c) there is no person capable of giving or authorized to give a valid

discharge; or (d) garnishing proceedings have been taken in respect of the money,

the agent may apply to the Supreme Court for an order for payment of the money into court, and the court may, on notice, if any, as it thinks necessary, make an order accordingly, and the application shall in the first instance be made ex parte.

(3) Payment into court by an agent under subsection (2) discharges the agent for the amount paid into court.

(4) When an agent applies for an order under subsection (2), he shall file an affidavit setting forth

(a) the names and addresses of the principals to the transaction; (b) the names and addresses of all claimants to the money of whose claims

he has notice; (c) the nature of the transaction; (d) the date and terms on which he received the money; and (e) particulars of his claim, if any, for commission or remuneration arising

out of the transaction. (5) Money paid into court under subsection (2) shall not be paid out of court

except by order of a court, which may order payment of the money out of court to the person entitled to it on terms it considers necessary, or direct an issue, or make any other order that it considers just.

(6) Subsection (1) does not apply in a real estate transaction where the agent collects, on a periodic and regular basis, rents, mortgage payments, payments under an agreement for sale registered under the land title legislation, payments under an option to purchase, or payments under a licence to use land.

1961-54-28; 1978-15-4.

PART 2 Interpretation

4 9 . In this Part the word "developer'' means a person who, as principal, sells or leases, or offers or proposes to offer for sale or lease, subdivided land but does not include a purchaser from the promoter, or any subsequent purchaser, where the purchase is in respect of not more than 4 lots, 4 strata lots, or one cooperative unit within a subdivision.

1974-77-4; 1975-65-1; 1978-15-4.

18


Prospectus requirements 5 0 . (1) For the purpose of this Part, except subsection (5), "approving officer''

means an approving officer as defined in the land title legislation. (2) No developer and no person on behalf of a developer shall sell, or lease, or

offer for sale or lease, or knowingly assist in the sale or lease or offering for sale or lease of, subdivided land, other than strata lots or units, unless the subdivision plan is deposited and registered in the land title office for the district in which the subdivided land is situated.

(3) No developer and no person on behalf of a developer shall sell, or lease, or offer for sale or lease, or knowingly assist in the sale or lease or offering for sale or lease of, subdivided land comprised

(a) in a strata plan, unless the strata plan is deposited in the appropriate land title office; or

(b) of cooperative units, unless subsection (4) is complied with.

(4) Notwithstanding subsection (3), a developer, or a person on behalf of a developer, may enter into a contract to sell or lease subdivided land

(a) comprised of proposed strata lots where the proposed strata plan of buildings proposed to be constructed has not been deposited in a land title office; or

(b) comprised of cooperative units, if

(c) the creation of the proposed strata lots or the cooperative units has been approved by an approving officer;

(d) all money received from a purchaser or lessee is held in trust in the manner required by section 14, 15 and 16 until,

(i) in the case of a strata lot, the strata plan is deposited in the appropriate land title office and an instrument evidencing the interest of the purchaser or lessee in the strata lot has been registered in the appropriate land title office;

(ii) in the case of a cooperative unit, an instrument evidencing the interest of the person acquiring the interest has been delivered to that person; and

(e) subsection (6) has been complied with; but no contract in respect of strata lots to which paragraph (a) applies shall pass or purport to pass title to a strata lot, and any contract required to be filed pursuant to section 18 (1) of Schedule 2 shall so state.

(5) No developer, and no person on behalf of a developer, shall sell, or lease, or offer for sale or lease, strata lots or cooperative units created or intended to be created by converting existing buildings into strata lots or cooperative units, as the case may be, unless

(a) approval of the conversion to strata lots or cooperative units is first obtained,

(i) where a building is situated in a municipality, from the municipal council; or

(ii) where a building is not situated in a municipality, from the regional board of the regional district,

in which the building is situated; 19


(b) the provisions of the Residential Tenancy Act respecting the conversion of residential premises to strata lots or cooperative units are complied with; and

(c) subsection (6) has been complied with.

(6) No developer, and no person on behalf of a developer, shall sell, or lease, or offer for sale or lease, or knowingly assist in the sale or lease or offering for sale or lease of, subdivided land, unless a prospectus in the form and including the particulars required under section 51 is submitted to, and accepted and filed by, the superintendent.

(7) No developer, and no person on behalf of a developer shall sell, or lease, or enter into any contract for the sale or lease of, subdivided land, unless

(a) a true copy of the prospectus referred to in subsection (6) has been delivered to the prospective purchaser or lessee; and

(b) the prospective purchaser or lessee has been afforded the opportunity to read the prospectus and a receipt has been taken from the prospective purchaser or lessee acknowledging that he has been afforded that opportunity, and every receipt shall be retained on file by the person taking the same and be available for inspection by the superintendent for a period of 3 years after the date it was taken.

(8) No person, and no person on behalf of a developer, shall sell, lease or offer for sale or lease in the Province subdivided land situated without the Province unless

(a) he is the holder of a valid and subsisting agent's licence and is acting on behalf of a developer, or is a licensed salesman employed by that agent;

(b) the agent has advised the superintendent in writing that the agent has consented so to act and that his licensed salesman, if any, has consented so to act;

(c) as agent, he agrees to hold in his trust account in the Province all money representing deposits or any other consideration paid to him by a purchaser or lessee with respect to the transaction in accordance with section 63, for a period of at least 90 days after the money is received by him, and whether or not the transaction has been completed;

(d) there is printed or stamped in conspicuous type on the face of the prospectus required to be delivered under subsection (7) the words "Delivered on behalf of the developer by , whose address is

' ' , with the name of the agent and the place in the Province where he carries on business; and

(e) the subdivision plan or the strata plan is deposited and registered in the public office provided for the deposit or registration of those plans.

(9) Sections 14, 15, 16, 17, 18, and 48 apply with the necessary changes and so far as applicable to a developer, and to a person on behalf of a developer, to whom subsections (4) and (5) apply.

(10) Notwithstanding subsection (9), where a developer, or a person on behalf of a developer to whom subsection (4) applies, deposits money in an interest earning trust account, he shall be entitled to the interest earned by the money deposited from the sale of the first 1/3 of the strata lots or cooperative units offered by the prospectus.

(11) This section does not apply to a strata lot or cooperative unit that is (a) a strata lot that was created by a strata plan deposited and registered in a

land title office on or before February 17, 1977 and the boundaries of the

20

1979 R E A L E S T A T E RS CHAP. 3 5 6

strata lot are defined in the strata plan by reference primarily to floors, walls and ceilings;

(b) a cooperative unit of a cooperative corporation owning land situated in the Province where the cooperative corporation was established on or before October 1, 1974 and the cooperative unit has been marketed continuously since the date the cooperative corporation was established;

(c) a strata lot for which a prospectus has been filed under this Act and previously sold to a purchaser other than a purchaser who acquired, directly or indirectly by one or more acquisitions, either all of, or 5 or more of, the strata lots;

(d) a cooperative unit of a cooperative corporation for which a prospectus has been filed under this Act and previously sold to a purchaser other than a purchaser who acquired, directly or indirectly by one or more acquisitions, either all of, or 2 or more of, the cooperative units of that cooperative corporation; or

(e) a cooperative unit of a cooperative corporation for which a prospectus was filed and accepted under the Securities Act on or before June 1, 1975.

1974-77-6, 1974-114-15, 1975-65-2, 1977-64-55, 1978-15-4, 1978-25-334

Form of prospectus 5 1 . (1) Every prospectus to which section 50 relates shall be a statement in

writing dated and signed by every person who is at the time of the filing of the prospectus a developer or a director of a corporate developer of the subdivided land referred to in it, and the'prospectus shall contain a full, true and plain disclosure relating to

(a) the real estate proposed to be sold or leased, including the particulars set forth in Schedule 1;

(b) the strata lots proposed to be sold or leased, including the particulars set forth in Schedule 2; or

(c) the cooperative units proposed to be sold or leased, including the particulars set forth in Schedule 3.

(2) The Lieutenant Governor in Council may amend the schedules by adding to, subtracting from, or varying the particulars itemized in them, and may, on conditions he prescribes, provide for the exemption from the provisions of this Part of subdivisions for or in connection with industrial development.

(3) There shall be printed or stamped in conspicuous type on the face of every prospectus required to be delivered under this Act the following words:

"Neither the Superintendent of Insurance nor any other authority of the government of the Province of British Columbia has in any way passed on the merits of the matters dealt with in this prospectus.",

and any representation to the contrary is an offence under this Act. 1961-54-29, 1973-147-11, 1974-77-7, 1978-15-4

Signature of prospectus

5 2 . (1) Any director may sign the prospectus by his agent. (2) Where the superintendent is satisfied on evidence presented to him that a

director is not available to sign the prospectus, the superintendent may dispose with the requirement for his signature.

1961-54-29

152 21


Documents to accompany prospectus

5 3 . (1) Every prospectus submitted to the superintendent under section 50 relating to land described in a subdivision plan referred to in section 50 (2) shall be accompanied by

(a) a certificate of a solicitor who is a member of the Law Society of British Columbia of the correctness of the contents of the prospectus with respect to sections 1 ,5 ,8 ,9 ,11 and 15 of Schedule 1, except in so far as they are proposals;

(b) an affidavit of every developer or of a director of each corporate developer declaring

(i) that every matter of fact stated in the prospectus is correct; and (ii) that a true copy of it will be delivered to the prospective purchaser

or lessee; (c) a true copy of the plan referred to in section 11 of Schedule 1; (d) a true copy of every particular form of contract referred to in section 10

of Schedule 1; (e) documents the superintendent requires to support any statement of fact,

proposal or estimate set out in the prospectus; and (f) financial particulars of each developer the superintendent considers

adequate. (2) Every prospectus submitted to the superintendent under section 50 relating to

subdivided land comprised in a strata plan shall be accompanied by (a) a certificate of a solicitor who is a member of the Law Society of British

Columbia of the correctness of the contents of the prospectus with respect to sections 1, 5, 10, 11, 12 and 13 of Schedule 2, except in so far as they are proposals;

(b) an affidavit of every developer or of a director of each corporate developer declaring


or lessee; (c) a certificate from each of the taxing authorities referred to in section 10

of Schedule 2 showing no delinquent taxes owing with respect to the subdivided land;

(d) a copy of any management agreement referred to in section 24 of Schedule 2;

(e) documents the superintendent requires to support any statement of fact, proposal, or estimate set out in the prospectus; and

(f) financial particulars of each developer the superintendent considers adequate.

(3) Every prospectus submitted to the superintendent under section 50 relating to subdivided land comprised of cooperative units shall be accompanied by

(a) a certificate of a solicitor who is a member of the Law Society of British Columbia of the correctness of the contents of the prospectus with respect to sections 1 ,5 ,9 ,10,11 and 12 of Schedule 3, except in so far as they are proposals;

(b) an affidavit of every developer or of a director of each corporate promoter declaring

22



or lessee; (c) a certificate from each of the taxing authorities referred to in section 9 of

Schedule 3 showing no delinquent taxes owing with respect to any land owned by the cooperative corporation;

(d) a copy of any management agreement referred to in section 23 of Schedule 3;

(e) documents the superintendent requires to support any statement of fact, proposal or estimate set out in the prospectus; and

(f) financial particulars of each developer and of the cooperative corporation the superintendent considers adequate.

(4) Where the certification required under subsection (1) (a), subsection (2) (a), or subsection (3) (a) requires reference to foreign law, a solicitor may, in making the certification, rely on the opinion of any person qualified in that foreign law who is acceptable to the superintendent.

(5) Where the subdivision is in respect of the conversion of one or more buildings by means of a cooperative corporation or strata plan, every prospectus submitted to the superintendent under section 50 shall be accompanied by a complete and current report prepared and signed by a registered architect or engineer, acceptable to the superintendent, as to the age, physical condition, and state of repair of each building, its heating, plumbing, electrical fixtures and equipment, elevators, roof, drainage and its general condition and repair of the structure and of its foundations.

(6) Every report required under subsection (5) shall be accompanied by a certificate stating

(a) the address and occupation of the person making the report; (b) the qualification of that person; (c) whether or not the report is based on personal examination and

knowledge; (d) the date of the examination; (e) if the report is not based on personal examination and knowledge, the

source of the information contained in the report; and (f) any interest that the person may have, either directly or indirectly, in the

matters reported on. (7) Every report under subsection (5) shall be made available for inspection by the

public. (8) In the case of a phased strata plan,

(a) the developer shall file with the original prospectus required under section 50 the particulars required by sections 16, 17 excepting paragraph (g), 18 (1) and 19 of Schedule 2 only in respect of the first phase of the development;

(b) the developer shall amend the original prospectus by filing the particulars required by sections 16, 17 excepting paragraph (g), 18 (1), and 19 of Schedule 2 before commencing the development of each successive phase; and

(c) the developer shall not sell, or lease, or offer for sale or lease, or knowingly assist in the sale or lease or offering for sale or lease of, a strata lot in a phase until the amended prospectus under paragraph (b) is accepted and filed by the superintendent.

1974-77-8; 1978-15-4. 9 0


Investigation by superintendent 5 4 . The superintendent may, before accepting the prospectus for filing, cause to

be made any investigation of the subdivision he sees fit. The reasonable and proper costs of the investigation shall be borne by the developer.

1961-54-29; 1978-15-4.

Investigation by council

5 5 . (1) The council, on the request of the superintendent, shall make the investigation referred to in section 54 through any of its members or officers or through any person authorized by the council, its chairman or its secretary.

(2) The reasonable and proper expenses incurred by the council, including reasonable and proper charges for the time of council employees in connection with the investigation, together with whatever fee may be fixed by regulation, shall be paid to the council by the developer.

1961-54-29; 1978-15-4.

Changes affecting prospectus

5 6 . If a change occurs with regard to any of the matters set out in any prospectus (a) that would have the effect of rendering a statement in the prospectus false

or misleading; or (b) that brings into being a fact or proposal which should have been

disclosed in the prospectus if the fact or proposal had existed at the time of the filing,

the developer shall immediately notify the superintendent in writing and shall file an amendment to the prospectus or a new prospectus as the superintendent may direct. Sections 50, 53, 54 and 55 apply to the amendment or new prospectus.

1961-54-29; 1978-15-4.

Reasons for refusal to accept prospectus by superintendent

5 7 . (1) The superintendent shall not accept a prospectus for filing where it appears to the superintendent that the provisions of section 50 have not been complied with, or

(a) that the prospectus fails to comply in any substantial respect with any of the requirements of section 51, or contains any misleading, false or deceptive statement, promise or forecast, or has the effect of concealing any material fact;

(b) that the requirements of section 53 have not been complied with in any substantial respect;

(c) that adequate provision has not been made for the protection of deposits or other funds of purchasers or prospective purchasers or for the assurance to purchasers or prospective purchasers of title or other interest contracted for;

(d) that adequate arrangements have not been made for payment of the cost of utility or other services; or

(e) that the subdivision is subject to a mortgage, lien or other encumbrance, securing or evidencing payment of money and affecting the subdivided land or more than one lot, parcel or strata lot of it, or an agreement

24


affecting more than one such lot, parcel or strata lot by which the developer holds an option or right to purchase the subdivided land subject to terms or conditions of payment or otherwise, unless

(i) there exists in that mortgage, lien, encumbrance or agreement an unconditional provision that the purchaser of each lot, parcel or strata lot can obtain title or other interest contracted for free and clear of that mortgage, lien, encumbrance or agreement on compliance with the terms and conditions of the purchase;

(ii) an agreement has been irrevocably made that the entire sum of money paid or advanced by each purchaser of a lot, parcel or strata lot or a portion of it that is satisfactory to the superintendent, shall be deposited in escrow in a depository acceptable to the superintendent until either (A) a proper release is obtained from that mortgage, lien,

encumbrance or agreement; (B) either the vendor or the purchaser defaults under the contract

of sale and there is a determination of the disposition of the money; or

(C) the vendor orders the return of the money to the purchaser; (iii) the title to the subdivision is to be held in trust under an

agreement of trust acceptable to the superintendent until a proper release from the mortgage, lien, encumbrance or agreement is obtained; or

(iv) there is compliance with any other alternative requirement or method that the superintendent may deem acceptable.

(2) The superintendent may require as adequate provision within subsection (1) (c), adequate arrangements within subsection (1) (d), or an alternative requirement under subsection (1) (e) (iv), or 2 or all of them, the furnishing of a bond to the superintendent for the benefit and protection of purchasers and prospective purchasers, with the surety, in the amount and subject to the terms that may be approved by the superintendent.

1961-54-29; 1968-46-5; 1973-147-13; 1978-15-4.

Power to suspend dealings

5 8 . (1) Where, after the acceptance and filing of a prospectus under this Part, it appears to the superintendent that any of the circumstances set out in section 57 (1) exist, whether or not, as it transpires, they existed at the time of acceptance, or in any other circumstances where the superintendent considers it to be in the public interest, the superintendent may order the developer and every person who on his behalf sells or leases, or offers for sale or lease, subdivided land in the subdivision to which the prospectus relates to cease selling, leasing or offering for sale or lease the same.

(2) No order shall be made under subsection (1), without the superintendent giving the developer an opportunity of being heard, unless, in the opinion of the superintendent, the length of time required for a hearing could be prejudicial to the public interest, in which event a temporary order may be made which shall expire 15 days from the date of the making of it.

(3) A notice of every order under this section shall be served on the developer and on every person known to the superintendent who on the developer's behalf sells or

25


leases, or offers for sale or lease, subdivided land in the subdivision to which the prospectus relates, and immediately on receipt of the notice,

(a) in the case of an order other than a temporary order, any acceptance and filing by the superintendent of the prospectus is revoked; and

(b) the subdivided land described in it shall not be sold or leased, or offered for sale or lease, unless the prospectus is reinstated or a new prospectus is accepted, or any order made in relation to it has expired.

1968-46-6; 1978-15-4.

Effect of prospectus

5 9 . (1) Where a prospectus has been accepted for filing by the superintendent under this Part,

(a) every purchaser of any part of the subdivided land to which the prospectus relates shall be deemed to have relied on the representations made in the prospectus whether the purchaser has received the prospectus or not; and

(b) if any material false statement is contained in the prospectus, (i) every person who is a director of the developer at the time of the

issue of the prospectus; (ii) every person who, having authorized such naming of him, is

named in the prospectus as a director of the developer; (iii) every developer; and (iv) every person who has authorized the issue of the prospectus

is liable to make compensation to all persons who have purchased the subdivided land for any loss or damage those persons may have sustained, unless it is proved

(v) that, having consented to become a director of the developer, he withdrew his consent before the issue of the prospectus, and that the prospectus was issued without his authority or consent;

(vi) that the prospectus was issued without his knowledge or consent, and that, on becoming aware of its issue, he immediately gave reasonable public notice that it was so issued;

(vii) that, after the issue of the prospectus and before a sale of the subdivided land, he, on becoming aware of any untrue statement in it, withdrew his consent to it and gave reasonable public notice of the withdrawal and of the reason for it;

(viii) that, with respect to every untrue statement not purporting to be made on the authority of an expert, or of a public official document or statement, he had reasonable grounds to believe and did, up to the time of the sale of the subdivided land, believe that the statement was true;

(ix) that, with respect to every untrue statement purporting to be a statement by or contained in what purports to be a copy of or extract from a report or valuation of an expert, it fairly represented the statement, or was a correct and fair copy or extract from a report or valuation, but the director, person named as director, developer or person who authorized the issue of the prospectus is liable to pay compensation as aforesaid if it is

26


proved that he had no reasonable grounds to believe that the person making the statement, report or valuation was competent to make it; or

(x) thaf, with respect to every untrue statement purporting to be a statement made by an official person or contained in what purports to be a copy of or extract from a public official document, it was a correct and fair representation of the statement or copy of or extract from the document.

(2) In this section "prospectus" includes every statement and report and summary of report required to be filed with the prospectus under this Part.

1961-54-29, 1966-40-8, 1978-15-4

Offence

6 0 . (1) A person who fails to comply with or contravenes any requirement of this Part commits an offence punishable under section 40, except, however, that a director or developer does not commit an offence by reason of the contravention of or noncompliance with section 51, 53, 56 or 58

(a) if he proves (i) that he was not cognizant of any matter not disclosed; or

(ii) that the noncompliance or contravention arose from an honest mistake on his part; or

(b) if the noncompliance or contravention (i) was in respect of matters that in the opinion of the court were

immaterial; or (ii) in the opinion of the court should be excused.

(2) Nothing in this section limits or diminishes any liability that any person may incur under this Act or under the general law apart from this section.

(3) Where a person referred to in subsection (1) or (2) is a licensee the provisions of Part 1 apply, with the necessary changes and so far as are applicable, to that person.

1961-54-29, 1968-46-7, 1973-147-14, 1978-15-4

Transition

6 1 . Any statement deposited with and accepted by the superintendent in pursuance of Division (13) of the regulations prior to the effective date of this Part shall be deemed to be a prospectus in the form and with the content required by section 50, and sections 50, 56, 58, 59 and 60 apply to it.

1961-54-29, 1968-46-58

Agreements void for noncompliance

6 2 . No promise or agreement to purchase or lease any subdivided land is enforceable against the purchaser or tenant by a person who has breached any of the provisions of this Part, or by a successor in title of that person.

1961-54-29, 1978-15-4

Rescission

6 3 . (1) Where a person has entered into a contract in the Province to purchase or lease subdivided land situated without the Province and

27


(a) any of the provisions of this Part have not been complied with; and (b) he is a purchaser, owner or lessee named in the contract,

he may rescind the contract, at any time up to one year after the date that the contract was entered into and while he remains the beneficial owner, by serving written notice of rescission on the developer or the agent for the developer.

(2) Service of notice of recession may be made by delivering, or mailing by registered mail at any post office in the Province, a signed copy of the notice

(a) to the agent at the address shown on the face of the prospectus; (b) to the agent at his office or place of business at, or out of, which the

contract was made; or (c) to the developer at his address within or without the Province where, for

any reason, no agent is acting on behalf of the developer. (3) In an action for rescission, the onus of proving that the provisions of this Part

have been complied with is on the developer. (4) Where, at the time a notice of rescission has been served on an agent, he is

holding the deposit, or other consideration, the agent shall (a) return the money in his trust account relating to that contract to the

person from whom it was received; or (b) promptly pay the money into the Supreme Court, and, thereupon, section

48 applies with the necessary changes and so far as is applicable. (5) Where a person has entered into a contract in the Province to purchase or lease

subdivided land situated without the Province, the deposit and other consideration payable by the purchaser or lessee to the developer with respect to the transaction may, at the option of the purchaser or lessee, be paid to the agent referred to in section 50 (8) and the payment shall, for the purposes of the contract, be deemed to be valid payment under the contract and every contract for the purchase or lease of the subdivided land shall be deemed to be amended accordingly.

(6) Where subdivided land is situated without the Province, every prospectus shall set forth, in conspicuous type, subsections (1) to (5).

1974-77-9; 1975-65-3; 1978-15-4.

Exemption from Part 2

6 4 . The superintendent may, on terms the Lieutenant Governor in Council may prescribe, exempt any person or class of persons from complying with all or any of the requirements of Part 2.

1974-77-10.

Proclamation

65. (1) Section 23 comes into force on proclamation and section 23X is repealed on proclamation of section 23.

(2) Sections 17 and 44 (u) and (v) come into force on proclamation. (3) The bracketed definitions in section 1 come into force on proclamation. (4) The bracketed words in section 1, 3 (1), (2) and (5), 4 (2), (3) and (4), 7(2), 9

(1) and (2), 10, 13 (a) and (b), 14 (1) and 24 are added on proclamation. (5) The bracketed words "by the agent" in section 9 (1) (b) are repealed. (6) The bracketed words in sections 14 (2) and 21 (1) are replaced on

proclamation. (7) Subsection (5) comes into force on proclamation.

1977-40-52.

28


SCHEDULES

SCHEDULE 1

A prospectus shall include the following particulars 1 In the case of a corporate developer its full name and the addresses of its registered office and

head office, the date when and the laws under which it was incorporated and whether by Letters Patent, certificate of incorporation, or otherwise, and if supplementary Letters Patent, or a similar authority for variation has been issued, the date and effect thereof,

2 The full name, address and occupation of each individual developer, and of the directors and officers of each corporate developer, with their addresses and occupations for the 5 years immediately preceding the date of the prospectus,

3 The general nature of the business transacted and to be transacted by each developer, 4 The name and address of the auditor of each developer, 5 Particulars of any and all secured debt of each developer, corporate or individual, existing or

proposed, and, if a corporation, the share capital authorized, issued and paid up, and the number and classes of shares and the par value of them, or if without par value so stating,

6 Particulars of the real estate transactions made by each developer within the 5 years immediately preceding the date of the prospectus,

7 A general description of the subdivision, 8 The legal description of the subdivision and particulars of the state of the title, 9 Particulars of all encumbrances, both existing and proposed, and of the provisions made or to be

made for their discharge, 10 Particulars of the terms and conditions on which it is intended to dispose of the subdivided land,

and if any particular forms of contract are to be used, stating when and where they may be inspected,

11 If the subdivision is within the Province, the date of approval of the plan of the subdivision by the appropriate approving officer, and the date and number of registration of the plan in the land title office for the district in which the subdivision is situate, and if the subdivision is without the Province, appropnate particulars of approval and registration,

12 Particulars of the arrangements to govern the handling of deposits and other money received or to be received from purchasers or prospective purchasers between the time of payment and the time when the title or other interest contracted for is conveyed and assured to the purchaser,

13 Particulars of existing utility services and utility service arrangements made or proposed to be made, stating which, for the subdivision, including water, sewerage, electricity, gas and telephone service, and particulars of access, roads, sidewalks, street lighting, garbage collection, fire protection, police protection, school facilities and public transportation,

14 Particulars of the plan for financing the subdivision, and, without limiting the generality of the foregoing, stating acquisition costs unpaid, costs of installation of proposed services, and details of any other expenditures which are or might reasonably be anticipated, with dates for payment in each case, and stating the amounts and nature of all performance bonds or similar securities which are, or are to be, posted or deposited, and the source of funds with which all unpaid costs and anticipated expenditures are to be paid,

15 Particulars of all building restrictions, zoning regulations and any other restrictions governing the use or development of the subdivided land,

16 Particulars of any clearing, fill, improvements or other changes from the natural state, 17 Particulars of any flooding or drainage overflow hazards with respect to the subdivided land and

of arrangements made or proposed for dyking or drainage, 18 Particulars of the nature of the foundations required for buildings on the subdivided land, 19 Particulars of arrangements, if any, which have been or are proposed to be made with contractors

or builders for construction of houses or other buildings on the subdivided land, where it is proposed to sell the subdivided land or any part of it with houses or other buildings on it contracted for, commenced or completed, including provisions for hen protection, if any,

29

RS CHAP. 3 5 6 R E A L ESTATE 28 ELIZ. 2

20 Any further or other particulars the supenntendent may in any particular case require to be set out before accepting the prospectus for filing

[Note where the subdivided land is situated without British Columbia, the following must be inserted also

"Delivered on behalf of the developer by , whose address is ' ' with the name of the agent and the place within the Province where he carries on business]

1961-54-30, 1973-147-16, 1974-77-12, 1978-15-4, 1978-25-334

SCHEDULE 2

(Strata Lots)

A prospectus for a subdivision by means of a strata plan shall include the following particulars 1 In the case of a corporate developer, its full name and the addresses of its registered office and

head office, the date when and the laws under which it was incorporated, and whether by Letters Patent, certificate of incorporation or otherwise, and, if supplementary Letters Patent or a similar authority for variation has been issued, the date and effect thereof,


3 The general nature of the business transacted and to be transacted by each developer,

4 The name and address of the auditor of each developer,

5 (1) Particulars of any and all secured debt of each developer, corporate or individual, existing or proposed,

(2) If part of the secured debt is with respect to other developments of the developer, a general description only is required,

(3) If the developer is a corporation, the share capital of the developer authorized, issued and paid up, and the number and classes of shares and the par value of them, or if without par value so stating,

6 A description of the real estate transactions made by each developer within the 5 years immediately preceding the date of the prospectus,

7 A general description of the subdivision, including the number and type of buildings comprised in it, and enumerating the common facilities and the date of commencement and the estimated date of completion of construction of each building and the common facilities and the size and location of the buildings and the common facilities and the dimensions and location of each type of strata lot,

8 If the subdivision is to be carried out by means of a phased strata plan, details of the total development as follows

(a) A sketch plan of the land to be included within the strata plan, indicating the approximate boundaries of the area to be developed in each phase and the approximate location of the buildings and common facilities to be built in each phase,

(b) An enumeration of the common facilities, playgrounds, laundry, tennis courts, pool, etc , and a specification of when they will be built,

(c) The unit entitlement of each phase, and the total unit entitlement of the completed development,

(d) The maximum number of units and general type of residence to be built in each phase, (e) The dates at which the owner developer will elect whether or not to proceed with each

phase, (f) The estimated date of commencement of construction and completion of construction

for each phase, and (g) An explanation of the provisions of the Condominium Act which ensure that the

common facilities will be provided,

30


9. If the proposed subdivision is only a portion of a multi staged development, other than a phased strata plan, that is being built on separate parcels resulting in separate strata corporations that are subsequently amalgamated or have contracts or easements for use of common facilities,

(a) the number and type of buildings to be built in each stage; (b) the common facilities to be built in each stage; (c) the date of commencement and estimated date of completion of construction of each

stage, including the common facilities to be included in each stage; (d) the number and type of strata lots to be built in each stage and the proposed unit

entitlement of each strata lot based on that number and type; (e) the estimated date of the amalgamation, if applicable; and (f) if the various stages are not to be amalgamated, a description of the method of sharing

the common facilities, if any, and the cost of operating and maintaining them and the cost of managing and controlling the total development;

10. The legal description of the subdivision, its geographical location, and the municipal, Provincial, or other taxing authorities exercising taxing powers in respect to it;

11. (1) If the subdivision is within the Province, the date of approval of the development by the appropriate approving authority and the date and number of the building permit issued by the appropriate approving authority together with a statement of the development permitted by the building permit;

(2) If the subdivision is without the Province, full particulars of the approval and registration of the strata plan, including the date and method of approval and the date, number and place of registration;

12. Particulars of the state of the title to the subdivision, including particulars of all encumbrances, both existing and proposed, and of the provisions, if any, made or to be made for their discharge;

13. A statement that the development complies with all building restrictions, zoning regulations, and other restrictions governing the use and development of the subdivision or of any of the strata lots therein; and particulars of any restriction on future development; and including the particulars of any development permit or land use contract entered into with respect to the subdivided land;

14. Particulars of the changes from the natural state and of the landscaping which will be supplied by the developer and the estimated date of completion of them;

15. Particulars of any flooding or drainage overflow hazards with respect to the subdivided land and of arrangements made or proposed for dyking or drainage;

16. Particulars of the unit entitlement of each type of strata lot in the subdivision, and the basis for the calculation of such unit entitlement, and particulars of the share of each strata lot in the common property or other assets of the strata corporation on the destruction of the buildings;

17. Particulars of the terms and conditions on which it is intended to dispose of the strata lots, including

(a) if any particular form of contract is to be used, the address in the Province where a copy may be examined;

(b) a statement of the furniture, appliances, furnishings or equipment which will be supplied with the strata lot, including whether the cost of these items will be included in the price of the strata lot and any encumbrances existing or proposed with respect to the furniture, appliances, furnishings or equipment;

(c) the warranties, if any, to be given by the developer with respect to the construction and finishing of the buildings, strata lots and common facilities in the subdivision;

(d) the warranties, if any, with respect to the appliances and equipment supplied with the strata lot;

(e) particulars of the arrangements to govern the handling of deposits and other money received or to be received from purchasers or prospective purchasers between the time of payment and the time when the title or other interest contracted for is conveyed and assured to the purchaser;

(f) if it is intended that the sale of one or more of the strata lots is to be not wholly for cash, particulars of any financing which is to be made available to the purchaser, stating whether this

31

R S C H A P 3 5 6 REAL ESTATE 28 ELIZ. 2

financing is optional or mandatory, and including the maximum amount of such financing, interest rate, term, amortization, prepayment nghts and voting rights of the lender, whether the purchaser may take a lesser amount, and the estimated cost to the purchaser of obtaining this financing, and

(g) a statement of the provisions made or to be made to protect purchasers from builder's liens,

18 (1) A statement of the proposed budget of the strata corporation for a typical average full year of operation, stating all expenses anticipated with respect to the subdivision, including an amount for the contingency reserve fund, and a statement of these total common expenses broken down on a monthly basis relating to the unit entitlement of each type of strata lot,

(2) In the case of a phased or staged development, a statement of the estimated total expenses per annum attributable to the common facilities broken down into a monthly amount for each of the various unit entitlements for each phase or stage of the development,

(3) Where the amount contained in the budget is an estimate, state the basis for such estimate, 19 A statement of whether or not the real property taxes and the utilities will be paid or become

payable by the strata lot owner, and whether or not the utilities will be paid by the strata lot owner or by the strata corporation as part of the common expenses,

20 Particulars of the fire and liability insurance placed by the developer, 21 Particulars of existing utility services and utility service arrangements made or proposed to be

made, stating which, for the subdivision, including water, sewerage, electricity, gas and telephone service, and particulars of access, roads, sidewalks, street lighting, garbage collection, fire protection, police protection, school facilities and public transportation,

22 A statement of whether parking stalls or garages, storage areas and private yard space are to form part of the strata lots or part of the common property, and, if they are to form part of the common property, an explanation of how, under the Condominium Act, they may be allocated to a particular strata lot, and the powers of the strata corporation in allocating or discontinuing the allocation of any part of the common property to a particular strata lot, and. if the developer intends to allocate any of the common property to the use of particular strata lots when he is the sole member of the strata corporation, a statement of that intention,

23 Particulars of the plan for financing the subdivision and, without limiting the generality of the foregoing, stating acquisition costs unpaid, costs of installation of proposed services, and details of any other expenditures which are or might reasonable be anticipated, with dates for payment in each case, and stating the amounts and nature of all performance bonds or similar securities which are, or are to be, posted or deposited, and the source of funds with which all unpaid costs and anticipated expenditures are to be paid,

24 A fair and accurate summary of any management contract entered into, agreed to be entered into, or proposed to be entered into by or on behalf of the strata corporation, including

(a) the details of any benefits accruing to the developer or his nominee under such contract or apart from such contract,

(b) the relationship of the developer or his nominee with any party to the management contract,

(c) the right of the owners and the property manager to terminate the contract, (d) the total cost of management services and the cost per month for each different unit

entitlement, and (e) a brief statement of the obligations of the property manager under the contract,

25 Particulars of (a) any arrangement by which a strata lot is to be retained or alienated for nonresidential

purposes, (b) any litigation affecting the subdivision pending against the strata corporation or the

developer, as the case may be, and (c) any strata lot to be used as a manager's residence, together with a statement of whether

it is to be owned by the strata corporation,

26 Where the subdivision is situated without the Province, a statement of the applicable law of the jurisdiction in which the subdivision is located as it relates to the subdivision, including a

32


statement of the rights and obligations of the owner of a strata lot in that jurisdiction and a statement of any other rights, obligations or provisions of the foreign law that would, if known, materially affect a person's decision to purchase that strata lot,

27 Particulars of the bylaws proposed for the strata corporation if at variance with the First and Second Schedules of the Condominium Act,

28 A statement of any material contracts that the developer has entered into or intends to enter into for, on behalf of, or with the strata corporation, or affecting the subdivided land,

29 Where the subdivided land is situated without the Province, the provisions of section 61 of the Act,

30 Particulars of any other material facts relating to the strata lots proposed to be offered for sale or lease, including particulars of any property not owned by the strata corporation that will be available for the use of the members, and the cost of such use,

31 Any further or other particulars the superintendent may in any particular case require to be set out before accepting the prospectus for filing


"Delivered on behalf of the developer by , whose address is " with the name of the agent and the place within the Province where he carries on business ]

1974 77-13, 1978-15 4

SCHEDULE 3

(Subdivision by means of a cooperative corporation)

A prospectus in respect of a subdivision by means of the creation, conversion, organization or development of a cooperative corporation shall include the following particulars

1 In the case of a corporate developer its full name and the addresses of its registered office and head office, the date when and the laws under which it was incorporated, and whether by Letters Patent, certificate of incorporation, or otherwise, and, if supplementary Letters Patent or a similar authority for variation has been issued, the date and effect thereof


3 The general nature of the business transacted and to be transacted by each developer, 4 The name and address of the auditor of each developer, 5 (1) Particulars of any and all secured debt of each developer, corporate or individual, existing or

proposed, (2) If part of the secured debt is with respect to other developments of the developer, a general

description only of this secured debt is required, (3) If the developer is a corporation, the share capital of the developer authorized, issued and

paid up, and the number and classes of shares and the par value of them, or if without par value so stating,

6 A description of the real estate transactions made by each developer within the 5 years immediately preceding the date of the prospectus,

7 A general description of the subdivision, including the number and type of buildings comprised in it, and enumerating the common facilities and the date of commencement and the estimated date of completion of construction of each building and of the common facilities and the size and location of the buildings and the common facilities and the dimensions and location of each type of cooperative unit,

8 If the proposed subdivision is only a portion of a multistaged development, other than a phased strata plan, that is being built on separate parcels resulting in separate cooperative corporations that are subsequently amalgamated or have contracts or easements for use of common facilities,

33

RS CHAP. 3 5 6 R E A L ESTATE 28 ELIZ. 2

(a) the number and type of buildings to be built in each stage, (b) the common facilities to be built in each stage, (c) the date of commencement of construction and estimated date of completion of

construction of each stage, stating the common facilities to be included in each stage, (d) the proposed entitlement of each cooperative unit m its stage and in the total

development, (e) the maximum number and type of cooperative units to be built in each stage and the

proposed entitlement of each cooperative unit based on that number and type, (f) the estimated date of the amalgamation, if applicable, and (g) if the various stages are not to be amalgamated, a description of the method of sharing

the common facilities, if any, and the cost of operating and maintaining them and the cost of managing and controlling the total development,

9 The legal description of the subdivision, its geographical location, and the municipal, Provincial or other taxing authorities exercising taxing powers in respect of it,

10 (1) If the subdivision is within the Province, the date of approval of the development by the appropriate approving authority, if applicable, and, if new construction, the date and number of the building permit issued by the appropriate approving authority, if applicable, together with a statement of the development permitted by the building permit,

(2) If the subdivision is without the Province, full particulars of all necessary approvals and registrations, including the date and method of approval and the date, number and place of registration,

11 Particulars of the state of the title to the subdivision, including particulars of all encumbrances, both existing and proposed, and of the provisions, if any, made or to be made for their discharge,

12 A statement that the development complies with all building restrictions, zoning regulations, and other restrictions governing the use and development of the subdivision or of any of the cooperative units therein, and particulars of any restriction on future development, and including the particulars of any development permit or land use contract entered into with respect to the subdivided land,

13 Particulars of the changes from the natural state and of the landscaping which will be supplied by the developer and the estimated date of completion of them,

14 Particulars of any flooding or drainage overflow hazards with respect to the subdivided land and of arrangements made or proposed for dyking or drainage,

15 Particulars of the cooperative unit entitlement of each cooperative unit, the effect of such entitlement, and the basis of the calculation of it,

16 Particulars of the terms and conditions on which it is intended to dispose of the cooperative units, including

(a) if any particular form of contract is to be used, the address in the Province where a copy may be examined,

(b) a statement of the furniture, appliances, furnishings or equipment which will be supplied with the cooperative unit, including whether the cost of these items will be included in the price of the cooperative unit and any encumbrances existing or proposed with respect to the furniture, appliances, furnishings or equipment,

(c) the warranties, if any, to be given by the developer with respect to the construction and finishing of the buildings and common facilities in the subdivision,

(d) the warranties, if any, with respect to the appliances and equipment supplied with the cooperative unit,

(e) particulars of the arrangements to govern the handling of deposits and other money received or to be received from purchasers or prospective purchasers between the time of payment and the time when the title or other interest contracted for is conveyed and assured to the purchaser,

(f) if it is intended that the sale of one or more of the cooperative units is to be not wholly for cash, particulars of any financing which is to be made available to the purchaser, stating whether this financing is optional or mandatory, and including the maximum amount of such financing, interest rate, term, amortization, prepayment rights, and voting rights of the lender,

34

1979 R E A L ESTATE RSCHAP 3 5 6

whether the purchaser may take a lesser amount, and the estimated cost to the purchaser of obtaining this financing, and

(g) a statement of the provisions made or to be made to protect purchasers from builder's hens,

17 (1) A statement of the proposed budget of the cooperative corporation for a typical average full year of operation, stating all expenses anticipated with respect to the cooperative corporation, including an amount for the contingency reserve fund, and a statement of these total common expenses broken down on a monthly basis by each different entitlement,

(2) In the case of a phased development, a statement of the estimated total expenses per annum for each phase of the development broken down into a monthly amount for each of the various entitlements for each phase of the development,

(3) Where the amount contained in the budget is an estimate, state the basis for such estimate, 18 A statement whether or not the real property taxes and the utilities will be paid or become

payable by the individual cooperative unit owner or by the cooperative corporation, 19 Particulars of the fire and liability insurance placed by the developer, 20 Particulars of existing utility services and utility service arrangements made or proposed to be

made, stating which, for the subdivision, including water, sewerage, electricity, gas and telephone service, and particulars of access, roads, sidewalks, street lighting, garbage collection, fire protection, police protection, school facilities and public transportation,

21 Particulars of the provisions made for the parking of automobiles, including the number and location of parking stalls allocated to each cooperative unit, the control which the governing body of the cooperative corporation has over the allocation of parking stalls, a statement of what, if any, interest in any parking stalls or other common property is being retained by the developer, of an owner's rights with respect to the parking stall,

22 Particulars of the plan for financing the subdivision and, without limiting the generality of the foregoing, stating acquisition costs unpaid, costs of installation of proposed services, and details of any other expenditures which are or might reasonably be anticipated, with dates for payment in each case, and stating the amounts and nature of all performance bonds or similar securities which are, or are to be, posted or deposited, and the source of funds with which all unpaid costs and anticipated expenditures are to be paid,

23 A fair and accurate summary of any management contract entered into, or proposed to be entered into by or on behalf of the cooperative corporation, including

(a) the details of any benefits accruing to the developer or his nominee under such contract or apart from such contract,

(b) the relationship of the developer or his nominee with any party to the management contract,

(c) the right of the owners of the cooperative units and the property manager to terminate the contract,

(d) the total cost of management services and the cost per month for each different entitlement, and

(e) a brief statement of the obligations of the property manager under the contract,

24 Particulars of

(a) any right given to any person to use any of the common areas, other than a right given or to be given to each owner of a cooperative unit,

(b) any arrangement by which a cooperative unit is to be retained or alienated by the developer or his nominee for nonresidential purposes, and

(c) any cooperative unit to be used as a manager's residence, together with a statement of whether it is to be owned by the cooperative corporation,

(d) any litigation pending against the cooperative corporation or the developer, as the case may be,

25 Where the subdivision is situated without the Province, a statement of the applicable law of the jurisdiction in which the subdivision is located as it relates to the subdivision, including a statement of the rights and obligations of the owner of a cooperative unit in that jurisdiction and a

35

RS CHAP. 3 5 6 R E A L ESTATE 28 ELK. 2

statement of any other rights, obligations or provisions of the foreign law that would, if known, materially affect a person's decision to purchase that cooperative unit,

26 Particulars of important features of the Letters Patent, memorandum and articles, or other rules and regulations, called the "regulations", of the cooperative corporation and of how and when the regulations will be implemented,

27 A statement of any material contracts that the developer has entered into or intends to enter into for, on behalf of, or with the cooperative corporation, or affecting the subdivided land,

28 (1) The full name of the cooperative corporation and the addresses of its registered office, head office and records office, the date when and the laws under which it was incorporated, associated or formed, and whether by Letters Patent, certificate of incorporation, or otherwise, and, if any changes thereto, the date and effect thereof,

(2) If the cooperative corporation is not a company, give details of its form of organization and structure,

29 A brief description of the business carried on and intended to be carried on by the cooperative corporation and the general development of such business within the 5 preceding years

30 A brief statement of all assets owned by the cooperative corporation and its subsidiaries, 31 Particulars of any and all secured and unsecured debt of the cooperative corporation and its

subsidiaries, 32 (1) Particulars of the share capital of the cooperative corporation authorized, issued and paid up,

and the number and classes of shares and the par value thereof, or if without par value so state,

(2) If the cooperative corporation is without share capital, relevant details of the form of ownership in the cooperative corporation,

33 Where shares are being offered as part of the cooperative unit, the description of the shares and briefly the following information

(a) dividend rights, (b) voting rights, (c) liquidation or distribution rights, (d) pre-emptive rights, (e) conversion rights, (f) redemption, purchase for cancellation, or surrender provisions, (g) sinking or purchase fund provisions,

(h) liability to further calls or to assessment by the cooperative corporation, (l) provisions as to modification, amendment or variation of any such rights or provisions, (j) any other material or relevant features of the provisions attaching to the shares,

34 Where the cooperative unit includes a lease, or other right of occupancy, particulars, including the following information

(a) term, (b) rental, (c) occurrences which entitle the lessor to terminate, (d) whether the lease is in registrable form and, if not, why not, (e) prohibitions against subletting, (f) prohibitions against assignment, (g) provision for renewal, (h) full particulars of any restrictions on occupancy, (l) whether the transfer of a lease is contingent on the transfer of a share or other evidence

of ownership and, if so, the restrictions on the transfer of such share or other evidence of ownership,

35 A statement of any interest in the shares or other evidence of ownership m the cooperative corporation that will not be transferred by the developer or his nominee to the owners of the cooperative units,

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1979 REAL ESTATE R S C H A P 3 5 6

36 A statement whether the ownership of the cooperative units will or may permit the owners to qualify for the home owner grant, the home acquisition grant, or similar grants,

37 (1) The names and home addresses in full of all directors and officers of the cooperative corporation and indicate all positions and offices with the cooperative corporation held by each person named and the principal occupations within the 5 preceding years of each director and officer

(2) If it is proposed that persons other than owners of cooperative units in the cooperative corporation will be appointed directors or officers of the cooperative corporation, similar information for any such persons,

38 Particulars of any options or any other right to acquire an interest held by any person affecting the cooperative corporation, its securities, its shares, or its assets,

39 (1) The principal holders of securities in the cooperative corporation, including the name and address, class of security, type of ownership, number of shares owned and percentage of class as at a specified date within 30 days prior to the date of the prospectus,

(2) If all the issued and outstanding shares of the cooperative corporation are owned by the developer, so state,

40 (1) The name and the address of the auditor of the cooperative corporation, (2) The names of the cooperative corporation's transfer agent and registrar and the location of

the registers of each class of shares, (3) Where securities other than shares are offered, the location of each register on which

transfers of such security may be recorded, 41 Particulars of every material contract entered into by the cooperative corporation or any of its

subsidiaries within the 2 years prior to the date of the prospectus and state a reasonable time and place at which a copy of such contract may be inspected,

42 Particulars of any tax liabilities of the cooperative corporation, 43 If the cooperative corporation has been involved in any business undertaking during the

preceding 2 years, a copy of its current financial statements, 44 Where the subdivided land is situated without the Province, the provisions of section 61 of the

Act, 45 Particulars of any other material facts relating to the cooperative corporation, its financial

position, or the cooperative units being offered for sale or lease not disclosed herein, including particulars of any property not owned by the cooperative corporation that will be available for use by the owners of the cooperative units, and the cost for such use,

46 Any further or other particulars the superintendent may in any particular case require to be set out,


"Delivered on behalf of the developer by , whose address is ' ' with the name of the agent and the place within the Province where he carries on business ]

1974-77-13, 1978-15 4

Queen s Printer for British Columbia Victoria, 1979

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