What Buying Presale in BC Actually Involves
For many buyers in the Lower Mainland, buying presale in BC raises questions that resale purchases do not. The process is different, the timeline is longer, and the property does not exist yet at the time of signing. That gap between signing and completion creates room for misunderstanding, and some of those misunderstandings have hardened into assumptions that stop buyers from exploring options that may suit them well.
The following are among the most common misconceptions buyers encounter when buying presale in BC, along with the facts that sit behind them.
Myth 1: Presale Is Only for Investors
This is one of the most pervasive assumptions about the presale market. While investors do purchase presales, the majority of buyers in Surrey, Langley, and Burnaby developments purchase for their own use. Developers typically sell a significant portion of units to owner-occupiers, and many projects are designed with families and first-time buyers in mind.
The assumption that presale is primarily an investment vehicle causes some buyers to dismiss it entirely. In doing so, they may miss the opportunity to secure a new home at today’s prices, with a completion date that gives them time to prepare financially.
Myth 2: Presale Deposits Are at Risk
In BC, presale deposits are not held by the developer. Under the Real Estate Development Marketing Act, deposits must be placed in a trust account and cannot be released to the developer until the conditions of the purchase agreement are met or the buyer has taken possession. If a developer encounters financial difficulties before completion, the deposit remains protected in trust.
This does not eliminate all risk from a presale transaction, but it does mean that the deposit structure in BC is governed by a specific legal framework, not left to the discretion of the developer.
Myth 3: Presale Contracts Cannot Be Negotiated
Buyers sometimes assume that a presale purchase agreement is a fixed document with no room for discussion. In practice, terms such as assignment clauses, deposit schedules, and finish selections may be open to negotiation depending on the project and the stage of sales. Early in a project launch, developers may also offer incentives that do not appear on the published price list.
Whether a developer will negotiate, and how much, depends on market conditions, the stage of the project, and the number of units remaining. A Realtor® who works regularly with presale developers will know what is typically negotiable and when to raise it.
Myth 4: Presale Completion Is Always Delayed
Delays do occur, and they are more common in larger, more complex developments. However, not all presale projects run late, and delays are not uniformly long. Developers are required to disclose an estimated completion date in their disclosure statement, and any material amendment to that date must be communicated to buyers in writing.
Buyers in BC also have the right to rescind their purchase agreement if an amendment to the disclosure statement materially affects them, subject to conditions set out in the Real Estate Development Marketing Act. A delay does not automatically mean you are locked in without options.
Myth 5: GST Is Already Included in the Listed Price
This catches a notable number of first-time buyers off guard. For new homes in BC, GST applies to the purchase price. It is not included in the listed price and must be paid at completion. On a presale condo listed at $650,000, this adds $32,500 to the total cost.
A partial rebate may apply depending on the purchase price and whether the home will be used as a primary residence, but the rebate is not automatic and must be applied for. Buyers should factor GST into their budget from the outset, not as a late addition.
Myth 6: You Cannot Assign a Presale Before Completion
Assignment is the transfer of a buyer’s contractual interest in a presale to another buyer before the completion date. It is permitted in many presale purchase agreements in BC. Whether it is allowed, and under what conditions, depends entirely on the terms of the specific contract.
Some developers restrict assignment; others permit it subject to a fee or written consent. Buyers who are considering the possibility of assigning their presale should review the assignment clause carefully before signing, not after.
Myth 7: The Developer’s Sales Team Represents the Buyer
The sales team at a developer’s presentation centre represents the developer. Their role is to sell the units in that project, and they are not in a position to offer advice that serves the buyer’s interests independently.
A Realtor® representing a presale buyer works separately from the developer. Their role is to review the purchase agreement, identify unusual or restrictive clauses, compare the project against alternatives, and ensure the buyer understands what they are committing to. In many presale transactions, the developer’s commission structure accounts for the buyer’s Realtor® fee, meaning the buyer pays nothing additional to have independent representation.
Working with a Surrey Realtor® Before You Sign
Understanding what buying presale in BC actually involves is the first step toward making a well-informed decision. The myths above represent the questions and concerns that come up most often in early conversations with buyers who are new to the process.
At PresalesBC, we help buyers in Surrey, Langley, Burnaby, New Westminster, and Vancouver review presale options before they commit. If you would like to work through a specific project or understand the process in more detail, visit our presale buyer resources or contact us directly.
