By Anky Kan PREC*, LiveLowerMainland, Oakwyn Realty Ltd.
I spent years on the developer’s side of the sales centre desk as a sales director before representing buyers. A presale can be a smart way to buy a new home in Vancouver, but the contract is written by the developer, and the home does not exist yet. These are the eight things I walk every buyer through before they sign.
1. You have seven days to change your mind
Under BC’s Real Estate Development Marketing Act, the developer must give you a disclosure statement, and you can cancel a presale contract within seven days of signing it, for any reason, and get your deposit back. Use those seven days. Have a lawyer read the contract and disclosure statement, and confirm your financing plan. Note that the three-business-day Home Buyer Rescission Period that applies to resale homes does not apply to these presale purchases.
2. Read the disclosure statement, not just the brochure
The brochure sells the lifestyle. The disclosure statement tells you what you are buying: the strata plan, estimated strata fees, parking and storage allocation, rental and pet bylaws, the estimated completion date and the developer’s rights to make changes. Presale contracts often allow changes to layouts, materials and unit sizes, so know how much room the developer has.
3. Understand the deposit schedule
Deposits are usually paid in stages, and the amounts and timing vary by project. Ask exactly when each instalment is due, and confirm your deposit will be held in trust or protected by deposit insurance. Very small projects can be exempt from these rules, so ask the question directly.
4. The completion date is an estimate
Construction timelines move. Your contract will include an estimated completion date and an outside date. Ask what happens if the building is late, and plan your current lease, sale or mortgage rate hold with a buffer.
5. Budget for closing costs early
New homes carry 5% GST on the purchase price, which resale homes do not. On the other side, BC’s newly built home exemption can eliminate the property transfer tax on a new home with a fair market value up to $1,100,000, with a partial exemption up to $1,150,000. You must be a Canadian citizen or permanent resident, use the home as your principal residence, and move in within 92 days of registration. A federal GST rebate for first-time buyers of new homes became law in March 2026 and applies to purchase agreements signed after May 26, 2025. Confirm what applies to you with your lawyer or accountant before you count on it.
6. Know the rules before you plan to assign
An assignment means selling your contract to another buyer before completion. Most developers require their consent and charge a fee, and some restrict marketing. Since January 1, 2025, the BC home flipping tax also applies: profit from assigning a presale contract within 730 days of entering it is taxed, at 20% in the first 365 days and declining to zero by day 730.
7. Your mortgage is approved at completion, not at signing
A pre-approval today does not guarantee financing two or three years from now. Lenders assess your income, the interest rate and the appraised value when the building completes. Keep your finances steady, and talk to a mortgage broker who works with presales about long rate holds.
8. Inspect before you take possession
Before completion you will walk through the home and record deficiencies for the developer to fix. Take your time, and bring someone who knows construction. New homes in BC are also covered by 2-5-10 home warranty insurance: two years on labour and materials, five years on the building envelope and ten years on structure.
Bring your own representation
The sales team in the presentation centre works for the developer. You are entitled to your own agent, and in most projects it costs you nothing extra. We compare projects, developers, floor plans and contract terms, and we often hear about releases before they are advertised.
Thinking about a presale? Contact Anky Kan PREC* at 604-722-8613 or anky@livelowermainland.ca.
This article is general information, not legal or tax advice. Rules and thresholds change, so confirm the details with your lawyer or accountant.