Buying a pre-sale condo or townhome in British Columbia can be an excellent way to secure a brand-new home at today’s pricing while giving yourself time to save before completion. However, purchasing a home before it’s built is very different from buying a resale property.
Whether you’re a first-time buyer, downsizer, or investor, here are the key things you should know before signing a pre-sale contract.
What Is a Pre-Sale?
A pre-sale is a home that is purchased before construction is complete—and sometimes before construction even begins. Buyers enter into a contract with the developer and take possession once the project is finished, which may be several months or even years later.
1. Understand the Deposit Structure
Most developers require deposits totalling 10% to 20% of the purchase price, paid over several stages. These deposits are generally held in trust and protected under BC legislation until completion.
2. You Have a 7-Day Rescission Period
In British Columbia, buyers typically have seven days after receiving the required disclosure documents to cancel the purchase without penalty. After that period, the contract becomes legally binding.
3. Read the Disclosure Statement Carefully
The Disclosure Statement outlines important details about the development, including:
● Estimated completion dates
● Floor plans and specifications
● Amenities
● Potential risks
● Buyer rights
● Developer obligations
Take the time to review it carefully with your REALTOR® and lawyer before making a final decision.
4. Completion Dates May Change
Construction delays can happen due to weather, labour shortages, permitting delays, or supply chain issues. Be prepared for occupancy dates that may change.
5. Budget for Additional Costs
In addition to the purchase price, buyers should budget for expenses such as:
● GST (where applicable)
● Property Transfer Tax (subject to available exemptions)
● Legal or notary fees
● Adjustment costs
● Moving expenses
● Monthly strata fees
Understanding these costs ahead of time can help you avoid unexpected expenses.
6. Mortgage Approval Happens Twice
Getting pre-approved before purchasing is important, but your lender will reassess your financial situation before the home is completed. Interest rates, lending policies, income, and debt levels may change over time.
7. Ask About Assignment Rights
Some developers allow buyers to sell their contract before completion through an assignment sale, while others restrict or prohibit assignments or charge fees. Make sure you understand the terms before purchasing.
8. Ask About Current Buyer Incentives
Many developers offer incentives to attract buyers. Depending on the project, these may include:
● Reduced deposit structures
● GST-inclusive pricing
● Free parking or storage lockers
● Upgrade or decorating allowances
● Closing cost credits
● Limited-time purchaser incentives
Every development is different, so it’s important to ask what incentives are currently available.
Is a Pre-Sale Right for You?
A pre-sale can be an excellent opportunity if you’re planning ahead and want a brand-new home. It also allows you to secure today’s purchase price while your new home is being built.
However, every project is unique. Understanding the contract, timelines, financing requirements, and potential risks is essential before making your decision.
Thinking About Buying a Pre-Sale?
If you’re considering buying a pre-sale condo or townhome in Burnaby, Vancouver, Coquitlam, Surrey, Langley, the Fraser Valley, or elsewhere in British Columbia, I’d be happy to guide you through the process. I can help you compare developments, explain contracts and deposit structures, review available incentives, and help you find the right home for your needs.
For more information or to discuss current pre-sale opportunities, contact:
Heather Cook, REALTOR®
Phone: 778-891-7169
Email: Hcook.homes@gmail.com
I’m here to help you make an informed and confident real estate decision every step of the way.
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