What you are actually buying
A resale purchase is a home you can walk through, inspect and move into on completion. A presale is a contract with a developer to buy a unit that will be built, with completion often years away. You are buying a floor plan, a developer's track record and a set of contract terms.
That is not a reason to avoid presales. It is a reason to read the contract the way an engineer reads a specification.
Deposit structure and completion
Presale deposits are paid in stages and held in trust. The timing and size of each payment, what happens if you cannot complete, and the developer's rights to extend the outside completion date are all in the contract. Your financing is arranged close to completion, which means today's pre-approval does not guarantee tomorrow's mortgage.
My review focuses on the deposit schedule, the outside dates, the developer's history and what comparable completed product trades for today, so the presale price has a reference point.
- Deposit schedule and trust arrangements
- Outside completion dates and extension rights
- Rescission period under BC law
- Developer disclosure statement and amendments
Assignments
An assignment is selling your presale contract to another buyer before completion. The contract must permit it, the developer usually charges a fee and must consent, and marketing may be restricted. Tax treatment of assignments has changed and should be confirmed with your accountant before you rely on a strategy.
Tax
GST and income tax treatment of assignments and presales is specific to your situation. Confirm with an accountant; this guide does not provide tax advice.
Where resale wins
You see what you are buying, you inspect it, you close in weeks, and you can read the strata's actual history rather than a projection. Established buildings have known operating costs and known problems. For many buyers that certainty is worth more than a new finish.
How to decide
Match the product to your time horizon and your tolerance for completion risk. If you need to move within a year, resale. If you can hold through a multi-year completion and the contract terms are sound, a presale can make sense, provided today's comparables justify the price.
Questions
British Columbia provides a rescission period for presale purchases under the Real Estate Development Marketing Act and a separate homebuyer rescission period for most resale purchases. Confirm the current terms for your contract.
You can, but financing is finalised near completion. Lenders reassess your situation and the property at that time.
Contracts typically allow extensions to an outside date. Beyond that, remedies depend on the contract. It's one of the first things I review.
PDF edition
Prefer to read this later?
I’ll email you the guide as a PDF, along with the one piece of context that matters most for your situation.
Related
Real estate advisor, RE/MAX 2000 Realty
Written by Mervin Truong, Candid Real Estate Group · RE/MAX 2000 Realty. General information, not legal, tax or financial advice. Last reviewed October 2026.