The Complete Process from Registration to Completion
How Do Presales Work in BC?
Buying a presale home means purchasing a property before construction is finished. This guide explains the entire process, from selecting a development and reviewing the contract to paying deposits and preparing for completion. It provides a straightforward overview to help buyers understand each step and what to expect from start to finish.
1. Project Announcement and Registration
Before sales begin, a developer announces a new project and opens a registration list. By registering, you express interest and will receive updates, early details on pricing, and invitations to preview the project at a presentation centre.
2. VIP Previews and Early Access
Developers often grant early access to registered buyers who are working with a specialized Realtor®. During this phase, you can view floor plans, finishes, and initial pricing, giving you an advantage before sales open to the general public.
3. The Purchase Agreement
Once you’ve selected a home, you’ll sign a Presale Purchase Agreement. This legally binding contract outlines the terms of the sale, the home’s specifications, the deposit schedule, and the estimated completion date.
4. The 7-Day Rescission Period
In British Columbia, buyers have a mandatory seven-day “cooling-off” period after signing the purchase agreement. During this time, you can cancel the contract for any reason without penalty. This is a critical window to conduct your due diligence, including securing financing pre-approval and having a lawyer review the contract and disclosure statement.
5. Paying the Deposit
Your deposit is typically paid in installments over a set period. These funds are held in a trust account by a third-party lawyer or notary until the building is completed, ensuring your money is protected.
6. The Construction Period
This is the longest phase of the journey, often lasting two to five years. During this time, the developer will provide periodic construction updates. You may also be invited to make choices on finishes and colour schemes if offered by the developer.
7. Completion and Possession
As construction nears its end, you will be given notice to prepare for closing. This involves finalizing your mortgage, signing closing documents with your legal representative, and paying any remaining costs like property transfer tax and GST. You will then conduct a deficiency walkthrough of your new home to identify any any incomplete or defective items before taking possession.
