Smith & Farrow - Coquitlam

No, but sales staff work for the developer. Having your own agent means you have someone to protect your interests.

Yes. It’s called an assignment, but always check your contract because some projects have restrictions.

Your main option is to assign it to another buyer before completion, but check your contract for any limits or fees.

A presale occurs when a Developer sells a property, typically a condo or townhouse, to a buyer before it’s built or completed. Buyers secure a unit in a new development during the early stages, often based on floor plans, renderings, and show suites. The property is delivered once construction is complete.

Completed developments with remaining unsold units are still considered presales until those homes are officially purchased.

Risks:

• Delays: Construction timelines can be unpredictable – delays of 1–2 years are not uncommon.
• Commitment: Once you’ve signed, you’re locked in. If your finances or plans change, backing out isn’t easy. However, depending on your contract, resale through assignment might be an option.
• Uncertainty: Fluctuating interest rates and market downturns can impact the property’s value and resale potential

Benefits:

• Brand new home: You’ll be the first to live in it, with no immediate renovations needed.
• Warranty protection: Most presales come with a 2-5-10-year warranty, helping you save on repairs.
• Time to save: With completion typically 2–3 years away, you have more time to prepare financially.

Yes – 2025 and 2026 may be one of the best times in years to buy a presale condo.
Construction across B.C. has slowed sharply, with many developers pausing or cancelling projects. Because new homes take years to complete, today’s slowdown means fewer condos will be available by 2027 – 2030 – setting the stage for future price growth.

Today’s near-completion presales are selling at discounted prices with flexible deposits – often matching or beating resale values. Under the new government rules, most qualifying presales are also fully exempt from Property Transfer Tax and eligible for a 100% GST rebate, adding thousands in savings.

That said, we recommend focusing on projects nearing completion or those by reputable, well-established developers to ensure delivery confidence and long-term value protection.

Yes, presale purchases require an upfront deposit. While every developer may have slightly different terms, here’s what’s typical:

• Upon signing the purchase agreement, you’ll pay an initial deposit.
• You’ll then have a 7-day rescission period to reconsider your decision.
• If you move forward, you’ll usually pay 5-10% upfront, with additional payments of 5% spread out over the following 12-18 months.
• Deposits typically amount to 15-25% of the purchase price, which is applied toward the down payment upon completion of the home.

In British Columbia, buyers of pre-construction homes have a seven-day rescission period. This allows them to cancel the purchase agreement within seven days of signing the contract or receiving the Disclosure Statement, whichever is later. To rescind, buyers must provide the developer or brokerage with written notice.

However, this right only applies to new purchasers who have not previously received a Disclosure Statement for the development. If a buyer has already received a Disclosure Statement for the same property, they do not have a second rescission right. Deposits must be held in trust, and if the contract is rescinded properly, the deposit must be promptly refunded.

No. You don’t need a mortgage when you sign the presale contract. Your mortgage only kicks in when the home is finished and the transaction is complete.

You won’t start making mortgage payments until the development is complete and the home is ready for possession. However, it’s a good idea to begin arranging your mortgage early, ideally when you purchase the presale. This helps you better understand ownership costs, gives you time to prepare financially, and may help you secure a more favourable mortgage rate closer to completion.

As of May 27, 2025, if you’re buying or building a new primary residence and haven’t owned a home in the past 4 years, you may qualify for:

• 100% GST rebate on homes priced up to $1M
• Partial rebate on homes priced $1M–$1.5M

This applies to new homes from builders, owner-built homes, and co-ops. The rebate is valid for contracts signed between May 27, 2025, and May 26, 2031.

Presale (new) homes in BC may be exempt from Property Transfer Tax if their fair market value is $1,100,000 or less. This exemption applies to various newly built properties, including those constructed on vacant land.

• A new condo unit in a newly built building
• A newly placed manufactured home on vacant land
• Other qualifying newly built residences