Insights Header image
Insights Header image
Insights Header image

POLICY STATEMENT 17 – Extension of the Early Marketing Period

April 24, 2020 Real Estate Law Bulletin 2 minute read

In response to the COVID-19 pandemic, on April 17, 2020, the Office of the Superintendent of Real Estate (the “OSRE”) announced the issuance of Policy Statement 17. Policy Statement 17 provides for a temporary extension of the early marketing period for developments marketed prior to obtaining a building permit and/or a satisfactory financing commitment.

The conditions under which a developer can market a development governed by the Real Estate Development Marketing Act prior to obtaining a building permit and/or a satisfactory financing commitment are set out in Policy Statement 5 and Policy Statement 6, respectively. Prior to the issuance of Policy Statement 17, a developer could market such a development for a period of 9 months prior to obtaining a building permit and/or a satisfactory financing commitment, as applicable. This 9-month timeline commences on the filing date of the initial disclosure statement. If a developer does not obtain and disclose the details of a building permit and/or a satisfactory financing commitment, as applicable, prior to the expiry of the 9-month timeline, the developer must cease marketing the development. To accommodate the unforeseen circumstances that have arisen due to COVID-19, the OSRE issued Policy Statement 17, which temporarily extends the 9-month period to 12 months.

The extension applies to developments marketed under disclosure statements filed between June 17, 2019 to July 17, 2020.  For disclosure statements filed between the June 17, 2019 to April 16, 2020, an amendment will need to be filed to note that the early marketing period is being extended pursuant to Policy Statement 17. For disclosure statements filed between April 17, 2020 to July 17, 2020, the disclosure statement will need to disclose this extended early marketing period.

It is important to note all other provisions of Policy Statement 5 and Policy Statement 6 remain unchanged. Accordingly, the rescission right that arises for a purchaser if a building permit and/or a satisfactory financing commitment, as applicable, is not obtained and disclosed within 12 months from the date of filing of the disclosure statement remains unchanged.

The OSRE has indicated that it will consider, on an ongoing basis, whether COVID-19 pandemic response measures warrant any further extensions to the early marketing period provided for under Policy Statement 5 and Policy Statement 6.

If you wish to obtain further particulars regarding early marketing periods or Policy Statement 17 and its proposed implications, we recommend seeking legal advice.

by Dharam Dhillon and Ammen Bains (Articled Student)

A Cautionary Note

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2020

Insights (5 Posts)

Featured Insight

Is Your Arbitration Clause Appealing? No Appeal Available where Clause Says Dispute is “Finally Settled” by Arbitration

The Ontario Court of Appeal considers the type of language in a dispute resolution clause which precludes the right to appeal an arbitration award.

Read More
May 25, 2023
Featured Insight

Clocking In and Opting Out: Quebec CAI Issues Warning About Biometric Time Clocks in the Workplace

Following CAI's recent observations, this bulletin provides guidance to comply with the applicable requirements to implement biometric time clocks in Quebec.

Read More
May 24, 2023
Featured Insight

Copyright Board Modernizes Royalty Tariff-Setting Procedures for Users

The Copyright Board of Canada has completed Phase 1 of its Modernization Initiative to improve its royalty tariff-setting procedures for collectives and users.

Read More
May 24, 2023
Featured Insight

Environmental Priorities in Insolvency Proceedings and the Impact on Lenders: Alberta Court Broadens Redwater Principles

Alberta case Qualex v 12-10 Capital develops line of cases at the intersection of environmental protection and bankruptcy and insolvency law in Canada.

Read More
May 24, 2023
Featured Insight

Bill C-13: The Federal Government’s Answer to Bill 96, Notably Imposes New Obligations to Use French in Workplaces for Federal Employers

Bill C-13 - French language requirements for federally regulated businesses in Canada

Read More
May 24, 2023