Presale & Assignment Guide for B.C. Buyers

1. The disclosure statement

Under B.C.’s Real Estate Development Marketing Act (REDMA), a developer must give you a disclosure statement before you sign. It describes the project, the developer, the deposit terms, the expected completion date, the strata budget and bylaws, and the risks. Read every amendment too: developers update the statement when things change.

2. Your 7-day right to cancel

You can cancel a presale contract within 7 days of signing it or receiving the disclosure statement, whichever is later, by giving written notice. Your deposit must be returned. Use this week to have a lawyer or notary read the contract and to confirm your financing with your lender.

3. Deposits

• Presale deposits are often 10% to 20% of the price, paid in two to four instalments over the build.
• Under REDMA, deposits are held in trust by a lawyer, notary or brokerage, not spent by the developer (unless the developer has deposit protection insurance).
• Know what happens to your deposit if the project is cancelled or you can’t complete.

4. Taxes and rebates on a new home

• GST. 5% GST applies to new homes. Check whether the price includes GST.
• First-time buyer GST rebate. Up to $50,000, full up to $1 million and phased out at $1.5 million, for agreements made on or after March 20, 2025 and before 2031. Try the first-time buyer savings calculator.
• B.C. newly built home exemption. No property transfer tax on a new home up to $1.1 million, phased out by $1.15 million. The tax is paid when title registers at completion. See the transfer tax calculator.

5. Home warranty

New homes in B.C. must have third-party home warranty insurance: 2 years for materials and labour (with tighter limits in the first year), 5 years for the building envelope (water getting in) and 10 years for the structure. Ask which warranty provider the developer uses.

6. Financing at completion

Your mortgage is approved for completion, which may be 2 to 4 years away. Interest rates, your income and the home’s appraised value can all change. If the appraisal comes in below your price, you need to cover the difference in cash. Keep your credit in good shape and avoid big new debts while you wait.

7. Delays and the completion date

Contracts usually give an estimated completion date and an outside date. If the developer misses the outside date, you may have the right to cancel. Delays of months are common, so plan your housing and rate hold around them.

8. Assignments (selling before completion)

• Many contracts limit or prohibit assignments; the developer must consent and may charge a fee.
• Developers must report assignments to the province’s Condo and Strata Assignment Integrity Register.
• Profit on an assignment is taxable income, and since January 1, 2025, B.C.’s home flipping tax can apply to presale contracts held for less than 730 days.
• GST can apply to the assignment amount. Get tax advice before you sign.

9. Before you move in

You will do a pre-delivery inspection (PDI) with the developer and list any deficiencies. Then the developer registers the strata plan, title transfers on completion, and you get the keys. Keep a list of anything that shows up in your first year for the warranty.

Presale checklist

• Developer track record, past projects and reviews
• Disclosure statement and every amendment read by your lawyer or notary
• Deposit schedule you can afford, and where it is held
• GST included or extra, and which rebates you qualify for
• Estimated and outside completion dates
• Assignment clause and fees
• Strata budget, parking, storage and EV charging
• Mortgage pre-approval with a plan for a long rate hold