Everything you need to know before buying a presale condo in Vancouver. From deposit structures and rescission periods to developer due diligence and completion risks—a practical guide for 2026 buyers.
Presale condos offer the allure of buying at today’s prices for tomorrow’s home—brand new, never lived in, with modern finishes and the latest building technologies. But buying something that doesn’t exist yet comes with risks that resale properties don’t have.
In Vancouver’s market, presales can be excellent investments or expensive lessons. The difference comes down to understanding the process, researching the developer, and structuring your purchase to protect yourself. This guide covers everything you need to navigate Vancouver presales in 2026.
How Presale Condos Work
When you buy a presale, you’re purchasing a unit that hasn’t been built yet—sometimes before construction even starts. You’re essentially reserving your unit based on floor plans, renderings, and a developer’s promises.
The Typical Presale Timeline
Phase 1: Launch and Sales (Months 1-6)
- Developer opens sales center
- Floor plans, pricing, and finish options released
- Buyers sign contracts and pay initial deposits
- Popular units sell quickly; less desirable units may sit
Phase 2: Construction (2-4 years)
- Building permits secured
- Construction begins and progresses
- Buyers make additional deposit installments
- Developer may offer “construction updates” or hard hat tours
Phase 3: Completion (Final 2-6 months)
- Building nears completion
- Occupancy permit obtained
- Buyers arrange final financing
- Deficiency inspections conducted
- Title transfer and move-in
Total timeline: Typically 3-5 years from purchase to possession.
Deposit Structure: What You’ll Pay and When
Presale deposits in Vancouver typically follow a structured schedule. Unlike resale where you pay 5-10% on acceptance, presales spread deposits over time.
Common Deposit Schedule
| Timing | Amount | Cumulative |
|---|---|---|
| At signing | 5% | 5% |
| 30-90 days | 5% | 10% |
| 180 days | 5% | 15% |
| 365 days | 5% | 20% |
Some developers use different structures:
- 10-10-10: Three installments of 10% over 12-18 months
- 5-5-5-5: Four installments of 5%
- 10-5-5: Higher initial deposit, smaller follow-ups
Where Your Deposit Goes
By law in BC, presale deposits must be held in trust—either by the developer’s lawyer or a licensed trust company. The developer cannot use your deposit for construction until specific conditions are met.
Protection mechanisms:
- Deposits held in trust until completion
- Developer must meet sales thresholds before construction begins
- If project doesn’t proceed, deposits returned with interest
Deposit vs. Down Payment
Your deposit is different from your down payment:
- Deposit: Paid over time before completion (typically 15-20% of purchase price)
- Down payment: Total amount you’re not financing, applied at completion
- If deposit < down payment needed: You’ll need additional funds at closing
- If deposit = down payment: Your mortgage covers the rest
Example:
- Purchase price: $800,000
- Total deposit (20%): $160,000
- Mortgage financing (80%): $640,000
- At completion: Deposit transfers from trust to developer, mortgage funds the balance
The Rescission Period: Your 7-Day Safety Net
BC law gives presale buyers a 7-day rescission period—your chance to review the disclosure statement and cancel without penalty.
What’s in the Disclosure Statement?
The disclosure statement is a comprehensive document (often 200+ pages) containing:
- Developer’s corporate information and history
- Project details: unit count, amenities, parking, storage
- Strata plan and bylaws
- Budget estimates (strata fees, contingency fund)
- Construction timeline and completion estimates
- List of existing charges and encumbrances
- Developer’s financing arrangements
- Material contracts (construction, management)
How to Use Your 7 Days
Day 1-2: Receive and organize documents
- You’ll get the disclosure statement at signing or shortly after
- The clock starts when you receive it
Day 3-5: Review with professionals
- Have a real estate lawyer review the contract
- Identify any concerning clauses or unusual terms
- Research the developer (more on this below)
Day 6-7: Make your decision
- Proceed if comfortable
- Rescind if you’ve found red flags or changed your mind
Rescinding the Contract
If you decide to cancel within the 7 days:
- Provide written notice to the developer
- Your deposit is refunded in full
- No penalty or explanation required
Important: The rescission period is your only “free exit.” After 7 days, walking away means losing your deposit.
Developer Due Diligence: Research Before You Buy
The most important factor in a presale isn’t the floor plan or finishes—it’s the developer. A reputable developer with a track record of quality completion is worth more than the nicest rendering.
Questions to Research
Track Record:
- How many projects has this developer completed in Vancouver?
- Were previous projects delivered on time?
- What do owners of their previous buildings say?
Financial Stability:
- Is the developer well-capitalized?
- Are they relying heavily on presales to fund construction?
- What’s their relationship with lenders?
Quality Reputation:
- Any building envelope issues in past projects?
- History of deficiency complaints?
- Litigation history?
How to Research Developers
Online Resources:
- Google “[Developer name] reviews” and “[Developer name] problems”
- Check Reddit (r/vancouver) for buyer experiences
- Review BC Housing’s complaints database
- Search court records for litigation
In-Person Research:
- Visit completed projects by the same developer
- Talk to concierges or strata councils
- Attend AGMs of their other buildings if possible
- Ask the sales team about past projects directly
Professional Help:
- Your realtor should know developer reputations
- Real estate lawyers see patterns in contracts
- Ask your mortgage broker about lender opinions
Red Flags to Watch For
- First-time developer: No track record to evaluate
- Offshore ownership: Harder to pursue if issues arise
- Aggressive deposit schedules: May indicate cash flow concerns
- Vague completion dates: “Estimated 2027” vs. “Q2 2027”
- Too-good-to-be-true pricing: Why is it cheaper than comparable projects?
Contract Terms: What to Watch For
Presale contracts are heavily weighted toward developers. Understanding key terms protects you from surprises.
Completion Date Flexibility
Most contracts give developers significant leeway on completion timing:
- “Estimated” completion: Not binding; can change
- Outside completion date: The latest the developer can complete before you can cancel
- Gap between estimates: Often 12-24 months between “estimated” and “outside” dates
Impact: You might plan for a 2027 move-in but can’t exit the contract until 2028 if the developer uses their full timeline.
Change Clauses
Developers typically reserve rights to make changes:
- Unit size variations (often +/- 5%)
- Floor plan modifications
- Finish substitutions (“equal or better quality”)
- Common area changes
- Amenity modifications
Review carefully: Some changes are cosmetic; others materially affect your unit’s value or livability.
Assignment Restrictions
Can you sell your contract before completion?
- Assignment allowed: You can sell to someone else (they take over your contract)
- Assignment restricted: Requires developer approval, often with fees
- Assignment prohibited: You must complete the purchase yourself
BC’s flipping tax note: Assignment profits may be subject to the home flipping tax if you’ve held the contract less than 730 days.
GST Implications
New construction attracts 5% GST. Contracts specify whether the price is:
- GST included: Price is all-in
- Plus GST: You’ll owe an additional 5% at completion
Read our GST guide for details on rebates and calculations.
Risks of Buying Presale
Every presale carries risks that resale properties don’t. Understanding them helps you decide if presale is right for you.
1. Completion Delays
Construction delays are common. Reasons include:
- Permit delays
- Labor shortages
- Material supply issues
- Weather
- Financing complications
Impact: Your timeline for moving, selling your current place, or ending your lease gets disrupted. Carrying costs (rent elsewhere) can be significant.
2. Market Changes
A lot can change in 3-5 years:
- Interest rates may rise, reducing your buying power
- Property values might decline below your purchase price
- Your income or employment situation could change
Scenario: You buy at $800,000 in 2024. By 2027 completion, rates have risen and comparable units sell for $750,000. You’re completing at above-market price with higher financing costs.
3. Developer Failure
While rare, developers sometimes fail to complete projects:
- Financial difficulties during construction
- Unable to secure sufficient presales
- Bankruptcy or insolvency
Protection: Your deposit is in trust and should be returned, but you’ve lost years of time and opportunity.
4. Unit Doesn’t Match Expectations
What you see in the sales center isn’t always what you get:
- Views may be blocked by subsequent development
- Finishes may look different in person
- Layout may feel smaller than floor plan suggested
- Noise from mechanical systems or neighbors
5. Financing Complications
Your mortgage pre-approval from purchase doesn’t guarantee financing at completion:
- Pre-approvals expire (typically 90-120 days)
- Your financial situation may have changed
- Lender policies may have changed
- The building may not meet lender requirements
Critical: Secure financing 60-90 days before completion. Don’t assume your original approval holds.
What Happens at Completion
When the building is ready, you have approximately 30-60 days to complete the purchase.
Deficiency Inspection
Before closing, you’ll do a walkthrough to identify defects:
- Scratches, dents, or damage
- Missing or incorrect finishes
- Non-working fixtures or appliances
- Door and window operation
- Any deviations from plans
Document everything: Take photos, note locations, get developer acknowledgment of issues.
Deficiency Resolution
Developers must address deficiencies, but timing varies:
- Minor issues: Fixed before or shortly after your move-in
- Major issues: May delay completion or require holdbacks
- Cosmetic vs. functional: Cosmetic deficiencies rarely delay closing
Final Financing
At completion, your mortgage becomes active:
- Sign final mortgage documents
- Lender advances funds to your lawyer
- Lawyer pays developer, transfers title
- You receive keys
Move-In Considerations
Moving into a new building has unique aspects:
- Elevators may be restricted for moving
- Other units completing simultaneously (busy period)
- Amenities may not be finished yet
- Landscaping and common areas still under construction
Presale vs. Resale: Making the Choice
| Factor | Presale | Resale |
|---|---|---|
| Price | May be lower at launch | Market price today |
| Timeline | 3-5 years to possession | 30-60 days to possession |
| Certainty | Significant unknowns | What you see is what you get |
| Customization | Some finish choices | As-is (renovate later) |
| Deposits | 15-20% over 12-18 months | 5-10% immediately |
| Financing risk | Market conditions at completion | Secure financing now |
| GST | Applicable (5%) | Not applicable on resale |
| Developer risk | Track record matters | Building history available |
When Presale Makes Sense
- You have a long time horizon and aren’t in a rush
- You want new construction with modern specs
- You’ve researched and trust the developer
- You can handle the financial uncertainty of completion timing
- Current market offers attractive launch pricing
When Resale Makes Sense
- You need to move within 6 months
- You prefer certainty over potential upside
- You’re uncomfortable with the risks outlined above
- You want to see and touch exactly what you’re buying
- Building history and strata documents are important to you
Due Diligence Checklist
Before signing a presale contract:
- Research developer’s track record and reputation
- Visit their completed projects
- Review disclosure statement with a lawyer
- Understand the deposit schedule and prepare funds
- Confirm whether GST is included or extra
- Note the estimated vs. outside completion dates
- Review change and assignment clauses
- Calculate total cost including GST, closing costs
- Discuss with your mortgage broker about completion financing
- Consider: Can you afford this if rates rise or your income drops?
Key Takeaways
- Presale deposits are typically 15-20% paid over 12-18 months, held in trust
- You have a 7-day rescission period to review and cancel without penalty
- Developer research is the most important due diligence you’ll do
- Completion delays are common—build flexibility into your plans
- Market changes between purchase and completion create real financial risk
- Secure financing 60-90 days before completion, not at purchase time
- Presale works best for buyers with long time horizons and risk tolerance
Frequently Asked Questions
What happens if I can’t complete my presale purchase?
If you can’t arrange financing or don’t want to complete, you’ll likely lose your deposit. The developer can also pursue you for additional damages if they sell for less than your contract price. Before signing, ensure you have a realistic plan for completion financing and consider worst-case scenarios.
Can I sell my presale contract before the building is finished?
This depends on your contract’s assignment terms. Many developers allow assignments with their approval and a fee (often $5,000-$10,000 or a percentage of profit). Some prohibit assignments entirely. Review your contract and consider BC’s home flipping tax implications if assigning within 2 years of purchase.
How do I know if a presale price is fair?
Compare the per-square-foot price to recently completed buildings in the same area. Factor in that presale prices often include a “new premium” of 5-15% over resale. Research what similar units sold for in the developer’s previous projects. A good realtor can provide comparable analysis.
What protections do I have if the developer goes bankrupt?
Your deposit should be protected in trust and returned if the project fails to complete. However, you’ll lose years of time and any market appreciation you would have gained. Research developer financial stability and prefer established developers with multiple completed projects.
Should I buy presale as an investment property?
Presale can work for investors, but the risks are amplified: no GST rebate (5% becomes a cost), longer timeline to rental income, and market risk. Calculate your projected returns including GST, opportunity cost of deposits, and various completion scenarios. Many investors prefer existing rental properties for more predictable cash flow.
Work with Rain City Properties
Presale purchases require careful analysis—the right project from a reliable developer can be an excellent investment, while the wrong one creates years of stress and potential financial loss.
Greyden Douglas has guided Vancouver buyers through presale purchases for two decades, with direct knowledge of which developers deliver quality on time and which ones to approach with caution. Having relationships with local developers means access to preferred pricing and early information on upcoming launches.
Contact Greyden Douglas directly at (604) 218-2289 or book a call to discuss Vancouver presale opportunities.
