Pre-sale condos: what to check in the contract

Buying a pre-sale means agreeing to buy a home that does not exist yet, using a contract the developer wrote. The marketing centre shows you the finishes and the view. The contract decides what you actually get, when you get it and what happens if things change. Here is what I read closely with every pre-sale client before the cooling-off period runs out.

Use your seven-day cooling-off period

Under BC’s Real Estate Development Marketing Act, buyers of new pre-sale homes can cancel within seven days of signing the contract and receiving the disclosure statement, whichever comes later. That week is your chance to read everything, ask questions and get advice without risking your deposit.

The disclosure statement is a long document, but it holds the details the brochure leaves out: the developer, the zoning and approvals, the strata budget, the parking and storage plan, and any amendments. Ask the sales team for every amendment, not just the original. Have a lawyer or notary review the contract before the seven days are up. I go through it with you too, so you know which questions to ask.

The deposit schedule in your pre-sale contract

Most pre-sales in Metro Vancouver ask for 15% to 20% of the price, split into two to four payments over the first year or so. Every project is different, so read the schedule carefully.

• How much and when. Put each due date in your calendar. Missing a deposit can put you in default.
• Who holds the money. Deposits are usually held in trust by the developer’s lawyer. Some developers use deposit protection insurance, which can allow them to use the funds during construction. Ask which applies.
• Interest. Find out whether interest on the deposit is paid to you or kept by the developer.
• Your cash flow. Make sure your savings can cover every payment, with room for surprises. The pre-sale deposit calculator shows this month by month.

Completion dates and delays

A pre-sale contract usually has an estimated completion date and an outside date, which is the latest the developer can complete before you may be able to cancel. Many contracts also let the developer extend the dates for things outside their control, such as weather, labour shortages or permit delays.

Read how long those extensions can be, how much notice you get, and what your options are if the building is very late. Plan your housing around a later date than the brochure suggests. If you rent, a flexible lease helps.

Price, GST and closing costs

Pre-sale prices are usually quoted before GST, which is 5% of the price and is due on completion. Depending on the price and how you will use the home, you may get back part of it through the GST/HST New Housing Rebate, and a federal GST rebate for first-time buyers of new homes was introduced in 2025. Your lawyer can confirm what applies to you.

Property transfer tax is also due on completion. BC has an exemption for newly built homes under a set price if you will live in the home. Use the transfer tax calculator to see your number, then add legal fees, adjustments and moving costs.

What the pre-sale contract lets the developer change

Most contracts allow the developer to make changes. That can include substituting finishes and appliances with “equal or better” ones, adjusting the layout, and a small difference in square footage, often a few percent, without changing the price.

• How much can the floor area change before you are entitled to anything?
• Can the developer change the unit’s orientation, windows or view?
• Which finishes are guaranteed, and which can be substituted?
• Are parking stalls and storage lockers assigned to your unit, or allocated later?

Strata fees, bylaws and rentals

The disclosure statement includes an estimated strata budget for the first year. It is only an estimate, and fees often rise once the strata takes over. Compare the estimate with similar new buildings nearby. Read the proposed bylaws for rules on pets, rentals and short-term rentals. Since 2022, BC strata bylaws can no longer ban long-term rentals, except in age-restricted buildings, but short-term rentals are usually restricted.

Selling before completion: assignments

If there is any chance you will want to sell before you move in, read the assignment clause. Many developers only allow assignments with their written consent, charge a fee, and may limit marketing on MLS® so they can sell their remaining units first.

Financing at completion

You do not need a mortgage when you sign, but you will need one at completion, often two to four years later. Rates, lending rules and your income can all change by then. The home will also be appraised at completion, and if the appraisal comes in below the price, you need to cover the difference in cash. Keep a buffer and get pre-approved again well before completion.

Warranty and deficiencies

New homes in BC must have home warranty insurance, usually 2-5-10 coverage: two years for materials and labour, five years for the building envelope and ten years for the structure. Before you complete, you do a walk-through to list deficiencies. Go slowly, take photos and keep copies of everything.

Your pre-sale contract checklist

1. Read the disclosure statement and every amendment within the seven-day cooling-off period.
2. Map out the deposits and make sure your savings cover each one on time.
3. Note the completion and outside dates and how far they can be extended.
4. Understand GST, rebates and transfer tax so the completion costs are not a surprise.
5. Check what the developer can change in finishes, layout and size.
6. Read the assignment clause even if you plan to move in.
7. Plan your financing for rates and rules that may be different at completion.

Pre-sales can be a great way to buy a brand new home, but only when you know exactly what you are signing. If you are looking at a project, here is how I help pre-sale buyers, or book a free call and we will go through the contract together.