Understanding Presale Purchases
A presale condo sale is the purchase of a home before construction is complete, and often before it has begun. Instead of viewing a finished suite, a buyer selects a home from plans, renderings, floor plans and a disclosure statement, then signs a contract with the developer. The home is typically completed and transferred to the buyer at a future date.
In Vancouver, presale condos can include apartments in new residential or mixed-use developments. Buyers commonly choose a floor plan, orientation, floor level and, where available, certain finishes early in the sales process. The contract sets the purchase price and outlines the anticipated completion period, deposit schedule, included features and conditions that apply before completion.
Deposits are usually paid in stages after the contract is signed. In British Columbia, buyer deposits for a presale development are generally held in trust or protected by a prescribed insurance arrangement until the home is completed, subject to the terms of the purchase agreement and applicable legislation. A buyer should understand exactly when each payment is due and how deposits are handled.
One important distinction is timing. The estimated completion date for a presale home is not always a fixed possession date. Construction, permitting, servicing and other factors can affect the schedule. The developer must provide notice requirements set out in the contract and disclosure materials, but buyers should plan for flexibility around their move, financing and current housing arrangements.
- Review the disclosure statement: It describes the development, proposed amenities, strata information, estimated completion details and material facts about the purchase.
- Read the contract carefully: Confirm the deposit structure, estimated closing dates, assignment provisions, finishing specifications and any developer change rights.
- Plan for closing costs: These may include GST, property transfer tax where applicable, legal fees, adjustments and mortgage-related costs.
- Confirm financing early: Mortgage approval at the time of purchase does not guarantee financing at completion, particularly if your income, rates or the property’s appraised value changes.
- Seek independent advice: A real estate lawyer and qualified mortgage professional can help you assess the agreement and your obligations before your rescission period ends.
For buyers, a presale condo can offer the opportunity to secure a newly built home and plan ahead. For developers, thoughtful presale planning helps support responsible development and homes designed for people. The best decision comes from understanding the contract, the project team and the long-term fit with your needs.
