Answers to General Presale Buyer Concerns
Here you will find answers to some of the most common presale frequently asked questions from homebuyers. These cover everything from deposits and timelines to financing, occupancy, and warranties.
Presale Buying Process and Timing
Can I change my mind after signing?
Yes. Under B.C.’s Real Estate Development Marketing Act (REDMA), buyers have a seven-day rescission, or “cooling-off” period, after signing a presale contract. During this time, you may cancel the agreement for any reason and have your deposit returned in full.
What happens if the project is delayed?
Construction delays are common in multi-phase developments. The purchase agreement will include an “outside completion date,” the latest date by which the developer must finish your home. If this date passes and the home is not complete, you may have the right to end the contract and recover your deposit, depending on the terms of the agreement.
When do I start paying strata fees and property taxes?
You begin paying both after completion, when ownership officially transfers to your name. Nothing is payable during construction.
What if market prices drop before my home is completed?
The price in a presale contract is fixed at the time of purchase. If market values decrease, the agreed-upon price remains unchanged. However, this also means you are protected if prices rise before completion.
Deposits and Financial Considerations
Is my deposit money safe?
Yes. In British Columbia, presale deposits are typically held in a trust account by a lawyer, notary, or real estate brokerage. The developer cannot access these funds until the project is completed, protecting if the development does not proceed.
How much is the deposit, and when is it paid?
Developers generally collect deposits in stages — often 5% on signing and additional amounts tied to construction milestones or building permit approval. The total is usually between 10% and 25% of the purchase price.
Can I get a mortgage for a presale?
Yes, though the process differs from a resale purchase. You’ll obtain pre-approval when you sign the contract, but full mortgage approval occurs closer to completion, when the building is ready for occupancy. Because rates and qualification rules may change over time, it’s best to work with a mortgage broker experienced in presales.
What other costs should I plan for at completion?
Typical closing costs include legal fees, GST, property transfer tax (with potential first-time buyer exemptions), and adjustments for strata fees or utilities. Your Realtor® or lawyer can provide a detailed breakdown before completion.
Representation and Advice
Do I need a Realtor® if I’m buying directly from a developer?
It’s highly recommended. The developer’s sales team represents the builder, not the buyer. A Realtor® experienced in presales works for you — reviewing contracts, comparing projects, and ensuring your interests are protected. Their commission is generally paid by the developer, not by you.
Occupancy and Ownership
What’s the difference between Occupancy and Completion?
Occupancy occurs when the municipality issues an occupancy permit, and you’re allowed to move in. Completion happens when the title transfers to your name, and you officially own the home. These events may occur on the same day or a few days apart.
What if I’m not ready to move in when the home is completed?
You may be able to rent the unit, assign (resell) your contract before completion if permitted, or arrange alternate possession timing. Options depend on the contract and developer approval.
Customization and Resale Options
Can I make changes to the layout or finishes?
Developers usually allow a choice of pre-selected colour schemes and some finish options within fixed deadlines. Major layout changes are rarely permitted once construction begins.
Can I sell my presale before it’s finished?
This is called an “assignment.” Some contracts allow it with developer consent and an assignment fee; others prohibit it entirely. Review the assignment clause with your Realtor® before committing.
Quality and Warranty
What warranty coverage do presale homes have?
New homes in BC are covered by the 2-5-10 New Home Warranty Program:
These warranties are backed by a third-party provider and transfer automatically to new owners.
