A presale or pre-construction purchase is buying a home before it is built, based on floor plans, renderings, and a disclosure statement provided by the developer. In BC, presale purchases are regulated under the Real Estate Development Marketing Act (REDMA), which requires developers to provide certain disclosures and protections to buyers. Buyers enter into a contract of purchase and sale before construction is complete, often years before receiving title. Verify current REDMA requirements with a BC lawyer or notary before acting.

Under the Real Estate Development Marketing Act (REDMA), buyers of presale properties in BC have a 7-day rescission period (as of 2026-07-27 — verify current) after signing the contract during which they may cancel without penalty. This cooling-off period begins the day after the buyer receives the disclosure statement and signs the purchase agreement. The buyer must deliver written notice of rescission within the 7-day period. Verify the exact calculation and delivery method with a BC lawyer or notary before relying on this period.

Under the Real Estate Development Marketing Act (REDMA), deposits paid for presale properties in BC must be held in trust by the developer or the developer's lawyer or notary until certain conditions are met, such as completion of construction or title transfer. REDMA and regulations prescribe the terms under which deposits may be released or must be returned. The deposit trust regime is designed to protect buyers if the project fails or the developer defaults. Verify the specific trust conditions and protections in your presale contract with a BC lawyer or notary before acting.

Yes, presale contracts in BC may generally be assigned to a new buyer before completion, unless the contract expressly prohibits assignment. The developer typically must consent to the assignment, and the original buyer may owe property transfer tax on the assignment transaction and income tax on any profit. The BC Home Flipping Tax Act (effective January 1, 2025 — verify current) may impose additional provincial income tax on profits if the original buyer assigns within a certain holding period. Verify assignment terms, tax obligations, and consent requirements with a BC lawyer, notary, or licensed tax professional before proceeding.

Common risks include construction delays (which can extend occupancy by months or years), market value changes (the completed unit may be worth less than the purchase price), and differences between what was marketed (renderings, finishes, layouts) and what is actually delivered. The developer may also become insolvent or fail to complete the project, though REDMA deposit protections mitigate some of this risk. Buyers should carefully review the disclosure statement,契约, and any addenda, and verify risks and protections with a BC lawyer or notary before committing.

A disclosure statement is a document that developers must provide to prospective buyers of presale properties under the Real Estate Development Marketing Act (REDMA). It contains prescribed information about the development, the developer, the property, any liens or encumbrances, the strata corporation (if applicable), and material facts that could affect a buyer's decision. The disclosure statement must be delivered before or at the time the buyer signs the purchase contract to trigger the 7-day rescission period. Verify that your disclosure statement complies with current REDMA requirements by consulting a BC lawyer or notary.

Yes, property transfer tax (PTT) is payable under the Property Transfer Tax Act (PTTA) when title to the presale property is registered in your name (at completion), not when you sign the initial contract. The PTT rate is 1% on the first $200,000 (as of 2026-07-27 — verify current), 2% on the portion from $200,000 to $2,000,000 (as of 2026-07-27 — verify current), 3% on the portion from $2,000,000 to $3,000,000 (as of 2026-07-27 — verify current), and 5% on the portion above $3,000,000 (as of 2026-07-27 — verify current), plus any applicable Additional PTT if you are not a Canadian citizen or permanent resident. First-time home buyers and newly built home purchasers may qualify for exemptions or partial exemptions under the PTTA. Verify current PTT rates, thresholds, and exemptions with a BC lawyer, notary, or the BC Ministry of Finance before completion.

A presale contract is for a property that does not yet exist or is under construction, and is governed by the Real Estate Development Marketing Act (REDMA), which provides a 7-day rescission period and deposit trust protections. A resale contract is for an existing, completed property and is typically subject to the standard BC Real Estate Association Contract of Purchase and Sale, without REDMA protections (though subject removal periods and deposit trust under the Real Estate Services Act may apply if a licensed realtor is involved). Presale contracts often include developer-drafted terms, longer closing timelines, and construction completion conditions. Verify the specific terms and protections in any contract with a BC lawyer or notary before signing.

As of January 1, 2023, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (SC 2022, c. 10) prohibits most non-Canadian citizens and non-permanent residents from purchasing residential property in Canada, including BC presale properties, subject to certain exemptions (e.g., temporary residents with work permits, refugees, certain international students). The prohibition is currently extended through January 1, 2027 (as of 2026-07-27 — verify current). Non-Canadians who are permitted to purchase may also be subject to BC's Additional Property Transfer Tax of 20% (as of 2026-07-27 — verify current) under the Property Transfer Tax Act. Verify eligibility, exemptions, and tax obligations with a BC lawyer, notary, or licensed tax professional before entering into a presale contract.

If the developer fails to complete the project, buyers' deposits should be protected under the Real Estate Development Marketing Act (REDMA) deposit trust requirements, and buyers may be entitled to a refund. Buyers may also have contractual remedies (such as termination and damages) depending on the terms of the purchase agreement and the reason for non-completion. In cases of developer insolvency, buyers may need to pursue claims through bankruptcy proceedings or against deposit trust accounts. Verify your rights, remedies, and the status of deposit trust protections with a BC lawyer or notary if a presale project is delayed or abandoned.