The BC Financial Services Authority (BCFSA) has released a significant update to the template contract clauses used with the British Columbia Real Estate Association (BCREA)  Contract of Purchase and Sale – Residential.

The revision includes approximately 100 changes, ranging from new and deleted clauses to modifications of existing ones.

While many of the updates are minor, several have meaningful implications for practice. We expect members may have questions as they review and begin working with the revised clauses.

The updated clauses are now available in WebForms and in BCFSA’s Knowledge Base.

The update includes:

• the introduction of new clauses,
• the removal of certain existing clauses, and
• modifications to a wide range of current clauses.

As always, it’s important to carefully review any clause before using it and ensure it’s appropriate for the specific facts of your client’s situation.

To support the profession, BCREA is conducting a full review of the revised clauses and will be providing feedback to BCFSA.

BCREA is also:

• assessing the impact of removed clauses, and
• identifying any resulting gaps that may require the development of new BCREA-authored standard form clauses.

In the interim, BCREA would like to clarify that:

• the clauses are not mandatory,
• their appropriateness is fact-dependent, and
• where appropriate, you should seek legal advice when determining whether a clause should be included.

If you have questions about the revised clauses, BCFSA has advised that REALTORS® should contact their Professional Standards Advisors at 604-660-3555 or 1-866-206-3030, Monday to Friday.

We’ll continue to keep you informed as more details become available.