🏗️ Understanding the Presale Buying Process in British Columbia

Buying a presale property in British Columbia can be an exciting and strategic way to enter the real estate market — whether you're a first-time homebuyer, downsizer, or investor. But the process is quite different from purchasing a resale property, and it’s important to understand each step before committing.

Here’s a straightforward guide to help you navigate the presale process in BC from start to finish.

🧱 What is a Presale?

A presale (also known as pre-construction) is when you purchase a condo or townhouse before it’s built. Developers typically begin selling units during the planning or construction phase, often two to four years before completion.

This allows buyers to secure a unit at today's prices while giving developers the funding they need to move the project forward.

🛠️ Step 1: Preview & Register

Presale projects often begin with a VIP preview phase where floor plans, pricing, and incentives are first released to early registrants and realtors. At this stage, buyers can review the marketing materials and register their interest in specific floor plans.

If you're working with a REALTOR®, they can often get you early access to the best units, prices, and promotions.

📄 Step 2: Submitting a Worksheet

Interested buyers are asked to submit a “worksheet” — essentially a form indicating which units and floor plans you're most interested in, along with your personal and financial details.

Submitting a worksheet does not obligate you to buy, but it shows the developer you're a serious buyer. Units are then allocated based on demand, usually in the order worksheets are received.

📝 Step 3: Offer & Disclosure Review

If your worksheet is selected and you're offered a unit, you’ll receive a Contract of Purchase and Sale along with a Disclosure Statement. In BC, developers are legally required to provide a detailed Disclosure Statement, outlining everything from project timelines and strata fees to bylaws and finishing specs.

Take your time reviewing this with your REALTOR® or lawyer before signing. It’s one of the most important parts of the process.

🧊 Step 4: 7-Day Rescission Period

After signing the contract, you enter a 7-day rescission period (also called the “cooling-off” period). This is a legal right in BC that allows you to walk away from the contract without penalty for any reason during these 7 calendar days.

Use this time to:

• Review financing options

• Consult a lawyer if needed

• Ensure this is the right move for your goals

💰 Step 5: Paying the Deposit

Once the rescission period ends, the deposit structure kicks in. Deposits are typically paid in stages — often totaling 15–25% of the purchase price by the time construction is complete.

Deposits are usually broken down like this:

• 5% at signing (after rescission)

• 5% in 3–6 months

• Additional 5–10% closer to completion

All deposits are held in trust and protected by the Real Estate Development Marketing Act (REDMA).

🧾 Step 6: Financing (Later, Not Now)

One unique aspect of buying a presale is that you don’t need to finalize your mortgage until the project is near completion, often 30–90 days before move-in.

However, it’s a good idea to:

• Get pre-approved early

• Plan for changes in interest rates or qualification rules over time

• Check if your lender offers long-term rate holds

🏗️ Step 7: Construction & Waiting Period

Presale construction timelines can range from 18 months to 4 years depending on the project. During this time, there’s not much action required from you — but your REALTOR® should keep you updated on:

• Construction progress

• Any changes to the disclosure

• Estimated completion date

This waiting period can also be a great time to save more money or prepare for your next steps.

🔁 Step 8: Assignment (Optional)

Some presale buyers choose to sell their contract before completion. This is called an assignment. Not all developers allow assignments, and there are fees involved, but it can be a strategy for investors who want to “flip” the contract.

If this is something you're considering, make sure the original contract allows assignments and that you understand the tax implications.

🗝️ Step 9: Final Completion & Move-In

When the building is nearly ready, the developer will issue a notice of completion, and you’ll begin finalizing your mortgage, signing legal documents, and preparing for closing.

You’ll typically:

• Meet with your lender and lawyer/notary

• Pay remaining closing costs (GST, legal fees, etc.)

• Receive keys on the possession date

⚠️ Important Costs to Plan For

In addition to the deposit, be prepared for:

• 5% GST (applies to all new homes in BC)

• Legal or notary fees

• Property Transfer Tax (PTT) (unless you qualify for exemptions)

• Strata fees (for condos/townhomes)

• Move-in or occupancy fees

Your REALTOR® can help you estimate these costs well in advance.

🎯 Final Thoughts

Buying a presale property in BC can be a smart move — especially if you're looking for a new, low-maintenance home with long-term upside. But it's not for everyone, and the process requires patience, due diligence, and the right guidance.

Having an experienced REALTOR® on your side who understands local presale contracts, developer reputations, and assignment strategy can make all the difference.

If you're curious about current or upcoming presale opportunities in your area — or just want to learn more about whether this option fits your goals — feel free to reach out. I’m happy to walk you through it, step by step.