Buying a brand-new home in British Columbia can offer modern finishes, energy-efficient systems, home-warranty coverage, and the opportunity to choose a preferred floor plan. However, purchasing directly from a developer—especially before construction is complete—is very different from buying a resale home.

Presale contracts can be lengthy and developer-friendly. Completion may be years away, financing conditions can change, and the finished home may differ from the display suite. Buyers should understand the contract, disclosure statement, deposits, taxes, warranty, and completion risks before signing.

What Is a Presale Purchase?

A presale purchase is an agreement to buy a home that has not yet been completed. The buyer is purchasing a contractual right to receive the finished home in the future rather than taking immediate ownership of an existing property.

The buyer commonly pays an initial deposit when signing and one or more additional deposits according to a schedule. The remaining purchase funds become due when the developer confirms the home is ready for completion.

1. The Developer’s Sales Team Represents the Developer

The sales representative in a presentation centre works for the developer and promotes the project. Even when helpful and professional, that representative does not automatically represent the buyer’s interests.

A buyer can have their own REALTOR® review the project, compare pricing and competing developments, ask questions, and help coordinate legal and mortgage advice. In many projects, the buyer’s REALTOR® must register or attend with the buyer on the first visit, so arrange representation before entering the sales centre or submitting personal information.

2. Read the Disclosure Statement

Before selling a presale unit, the developer must provide a disclosure statement. It describes important facts about the development and may include:

• Developer and project information

• Estimated construction and completion dates

• Development and building-permit status

• Estimated strata fees

• Proposed strata bylaws

• Parking and storage arrangements

• Financing and title information

• Phasing, amenities, and common property

• Purchase-contract rights and obligations

Buyers should also read every disclosure-statement amendment received after signing. Amendments can contain material changes affecting timing, design, costs, amenities, financing, or other important features.

Read BCFSA’s Consumer Guide to Presale Purchases

3. Use the Seven-Day Cancellation Period

For purchases governed by BC’s Real Estate Development Marketing Act, a purchaser generally has seven days to cancel the presale contract without penalty after the later of:

1. The date the purchaser enters into the purchase agreement; and

2. The date the purchaser acknowledges having an opportunity to read the disclosure statement.

Cancellation must be completed using proper written notice within the deadline. This period gives the buyer time to obtain independent legal, mortgage, tax, and real estate advice. It is not simply extra time to wait and see how the market moves.

Ask an experienced real estate lawyer to review the contract and disclosure statement immediately after signing—well before the cancellation period expires.

4. Understand the Presale Contract

A developer’s contract is not the same as the standard resale Contract of Purchase and Sale. It may give the developer broad rights concerning:

• Construction and completion delays

• Changes to plans, layouts, dimensions, and unit numbering

• Substitution of materials, appliances, and finishes

• Changes to amenities or common areas

• Access before completion

• Assignment restrictions and fees

• Termination rights and deposit handling

• Closing adjustments and additional charges

• GST and rebate treatment

Do not rely on verbal promises from the showroom. Ask for important representations, incentives, upgrades, credits, and included items to be clearly documented in the written agreement.

Need Help Comparing a New Development?

Before you register at a sales centre, I can help you compare the project with nearby resale and new-construction options, prepare questions for the developer, and coordinate independent legal and financing advice.

Call or text Ilona Crane at 604-377-9209 before your first visit to a presentation centre.

5. Confirm the Full Purchase Price

The advertised price may not equal the buyer’s final cost. Ask for a written estimate that identifies:

• Base purchase price

• GST and whether it is included or added

• Parking and storage costs

• Upgrades and change-order charges

• Assignment, administration, utility, and legal-related fees

• Strata move-in or connection charges

• Property Transfer Tax

• Credits, rebates, or incentives and their conditions

Have a lawyer and tax professional confirm the treatment of GST and any rebates. Marketing statements about rebates may assume the buyer qualifies and assigns the rebate to the developer.

6. Plan the Deposit Schedule

Presale deposits are commonly paid in stages and can total a substantial percentage of the purchase price. The contract should state the amount and deadline for every payment and identify who will hold the funds in trust.

Missing a deposit deadline may place the buyer in default. Keep the funds liquid, confirm transfer limits in advance, and retain receipts for every payment.

7. Financing Approval Today Is Not Final Approval Years From Now

A mortgage pre-approval obtained when signing a presale contract may expire long before completion. The buyer’s income, employment, debts, credit, interest rates, lending rules, and personal circumstances may change.

The property’s value can also change. If the completed home appraises below the contract price, the lender may provide a smaller mortgage and the buyer may need additional cash. If the buyer cannot complete, they may lose the deposit and could face claims for the developer’s additional losses and costs.

Ask a mortgage professional about extended rate holds, future qualification, deposit sources, GST treatment, and a contingency plan for a lower appraisal.

8. Completion Dates Can Change

Presale contracts usually provide estimated completion windows rather than one guaranteed date. Construction delays can result from permits, financing, labour, materials, weather, utility connections, inspections, or other causes.

Buyers may need flexible arrangements for:

• Current rent or a home sale

• School registration and moving dates

• Temporary accommodation and storage

• Mortgage-rate expiry

• Travel and legal-document signing

Review the contract’s outside dates, notice procedures, delay rights, and termination provisions with a lawyer.

9. Expect Possible Changes to the Finished Home

Dimensions in marketing plans may be approximate. Contracts frequently allow reasonable changes to layouts, ceiling heights, mechanical bulkheads, window placement, materials, finishes, landscaping, and amenities.

Confirm which items are contractual and which are illustrations only. Review:

• Floor-plan dimensions and allowable variance

• View and future-development disclaimers

• Finish specifications and substitution rights

• Appliance models or quality standards

• Parking, storage, patio, and balcony rights

• Ceiling heights and bulkheads

• Air conditioning, EV charging, and other promoted features

10. Review Parking and Storage Carefully

Parking and storage may be included in the purchase price, purchased separately, assigned later, or provided through limited common property, a lease, licence, or other arrangement.

Ask how the rights are legally documented, whether stalls are accessible for the buyer’s vehicle, whether EV charging is included, and whether the space can be reassigned. Do not rely only on a salesperson’s description.

11. Understand Assignment Restrictions

An assignment transfers the buyer’s presale-contract rights to another purchaser before completion. The contract may prohibit assignments, require developer consent, impose a fee, restrict marketing, or make the original buyer remain liable if the assignee fails to complete.

The seven-day presale cancellation right does not apply to a purchaser acquiring an assignment. Assignment profits can also have income-tax, GST, and BC home-flipping-tax consequences. Obtain legal and tax advice before assuming an assignment provides an easy exit.

12. Research the Developer and Builder

Review the developer’s completed projects, construction quality, delivery history, after-sales service, warranty response, and record of delays or disputes. Visit older projects when possible and speak with owners.

Confirm that the residential builder is properly licensed and that the home is enrolled for applicable warranty coverage. A strong brand is helpful, but it does not replace review of the specific contract and project.

13. Understand BC’s 2-5-10 Home Warranty

New homes built by licensed residential builders in BC generally require third-party home-warranty insurance unless a legal exemption applies. The minimum coverage is commonly called 2-5-10:

• 2 years: specified defects in materials and labour, with different time limits applying to certain components

• 5 years: defects in the building envelope, including unintended water penetration

• 10 years: structural defects

Coverage is subject to limits, commencement dates, exclusions, notice requirements, and the actual policy wording. Cosmetic issues, normal wear, owner-supplied work, landscaping, and some other items may not be covered.

Review BC Housing’s home-warranty information

14. Arrange an Inspection and Deficiency Review

New does not mean perfect. Before completion or during the developer’s scheduled walk-through, look for incomplete, damaged, missing, or improperly functioning items.

Consider hiring a licensed home inspector if the contract permits access. Inspect:

• Doors, windows, flooring, cabinets, and finishes

• Plumbing fixtures and visible leaks

• Electrical outlets, appliances, heating, cooling, and ventilation

• Balconies, patios, drainage, and exterior components where accessible

• Storage, parking, EV equipment, and included accessories

Record deficiencies clearly in writing with photographs and follow the builder’s and warranty provider’s reporting procedures. The possession walk-through does not replace reading the warranty policy or meeting claim deadlines.

15. Review the New Strata’s Budget and Bylaws

Initial strata fees are estimates and may rise after owners assume control and actual insurance, utilities, maintenance, staffing, and amenity costs become known.

Review the interim budget, proposed bylaws, unit entitlement, sections, shared-facility agreements, amenity obligations, parking documents, and any agreements with neighbouring phases or commercial units. Consider whether the projected fees appear realistic for the services being offered.

New-Construction Buyer Checklist

• Arrange your own REALTOR® before visiting the sales centre

• Read the disclosure statement and all amendments

• Have a lawyer review the contract during the seven-day period

• Confirm every deposit amount and deadline

• Calculate GST, Property Transfer Tax, and all additional charges

• Verify parking, storage, upgrades, and incentives in writing

• Review assignment restrictions and fees

• Plan for delays, rate changes, and a lower appraisal

• Research the developer and licensed builder

• Confirm home-warranty enrollment and policy details

• Arrange inspection access and document deficiencies

• Keep an emergency cash reserve for completion

Thinking About Buying New Construction?

Builder contracts and pricing can be difficult to compare, and the choices made before signing can affect your financing, taxes, flexibility, and long-term ownership costs.

Contact Ilona before registering with a development. I can help you compare options, understand the purchase process, prepare questions, and coordinate with qualified legal, mortgage, inspection, and tax professionals.

Ilona Crane, REALTOR®
Royal LePage Wolstencroft Realty
Serving South Surrey, White Rock, Langley, Cloverdale, Surrey, and the Lower Mainland
Call or text: 604-377-9209
Email: soldbyilona@gmail.com
Website: soldbyilona.com

This article provides general information only and is not legal, mortgage, tax, construction, warranty, or accounting advice. Developer contracts, disclosure statements, project details, taxes, rebates, and warranty coverage vary. Buyers should obtain independent professional advice before signing, allowing a cancellation period to expire, or making contractual decisions.

Ilona Crane, REALTOR®
Royal LePage - Wolstencroft
Phone: 604-377-9209
Email: soldbyilona@gmail.com

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