Buying a presale condo in BC

General information, not tax or legal advice. The numbers here are illustrative. Talk to your lawyer and accountant before you act on them.

The short version

A presale is a contract to buy a home that isn’t finished yet. In BC the developer must give you a disclosure statement.

Under the Real Estate Development Marketing Act you can cancel by written notice within seven days after the later of signing the purchase agreement and signing to say you had a chance to read the disclosure statement.

The notice has to be delivered in person or by registered mail to the developer or its brokerage, at the address in the disclosure statement or your agreement. After that window, the contract is firm.

What the disclosure statement covers

The building, the developer, the budget for the strata’s first year, the parking and storage, the estimated completion date, how deposits are held and any amendments as the project changes. Read the amendments as closely as the original.

Deposits

Deposits are usually paid in stages before completion and held in trust. Ask how much, when each one is due, and what happens to them if the project is delayed or cancelled.

Completion and the final price

• The completion date can move. Contracts usually include an outside date. Know it.
• GST usually applies to a new home. Some buyers qualify for rebates. Ask your lawyer or accountant.
• Property Transfer Tax is paid on completion. The newly built home exemption can reduce or remove it for a qualifying principal residence up to $1.1 million, with a partial exemption up to $1.15 million.
• Your mortgage gets its final approval at completion, which can be years after you sign. If rates or your income change, plan for it.

Assignments

Selling your contract before completion is called an assignment. Many developers limit or charge for it, and developers must report every assignment to the Province’s Condo and Strata Assignment Integrity Register. Since January 1, 2025, profit from assigning a presale contract you’ve held for less than 730 days can be caught by the BC home flipping tax.

Read the clause and talk to your accountant before you count on it.

Where I help

I can read the disclosure statement with you during the seven days, compare the price and the floor plan with resale homes nearby, and flag what to ask the developer and your lawyer.

Questions people ask

How long do I have to cancel a presale in BC?

Seven days after the later of signing the purchase agreement and signing to acknowledge you had a chance to read the disclosure statement. The notice must be in writing and delivered in person or by registered mail.

Does the three-day home buyer rescission period apply to presales?

Generally no. Where the disclosure statement rules apply, you get the seven-day right under that law instead.

Do I pay GST on a presale condo?

Usually yes, because it is a new home. Some buyers qualify for rebates. Ask your lawyer or accountant before you sign.