Pre-Sales offer buyers a chance to secure a brand-new home—often at today’s prices before the development is complete. Purchasing during pre-sale can provide flexibility in payment structure, modern finishes, and the ability to customize certain features. It’s also an opportunity to get into high-demand areas with lower upfront costs. However, it's important to review timelines, deposit requirements, and developer reputation. For first-time buyers, programs like the GST rebate and local housing incentives can make pre-sale opportunities even more appealing.
Pre-Sale
Condos
UNDERSTAND WHAT IS BEING SOLD BEFORE YOU CONSIDER BUYING
Developers in British Columbia commonly “pre-sell” residential units such as strata-titled apartments and townhouses (often referred to as condominiums or condos) prior to constructing the units. Typically, developers enter into contracts that provide for units to be built within two years at a fixed price (although construction completion can take longer) and require deposits to be paid by the prospective purchasers. The deposits are held in trust by a lawyer, notary public or real estate brokerage, unless deposit protection insurance is obtained, in which case the deposits may be released to the developer. Purchasing a pre-sale is not the purchase of an existing physical property, but rather a contract for the right to receive, and an obligation to pay for, a finished unit at a point in the future. Consumers should be aware of this difference in order to make an informed decision about purchasing a unit in a new development. Most people enter into a pre-sale contract with a developer directly while some may do so through an “assignment”.
WHAT IS AN ‘ASSIGNMENT OF A PRE-SALE CONTRACT’?
A contract assignment occurs when a buyer transfers the contract to buy property to someone else before the completion date. The original purchaser can transfer the contract for any price, even for a higher price than they paid for the property. Some purchasers assign or “flip” the units to other buyers before construction has even started.
STEP-BY-STEP GUIDE TO BUYING A PRE-SALE CONDO IN BC
Step 1: Get Familiar with Pre-Sales Start by understanding what a pre-sale condo actually is. These are homes sold before construction is finished—or sometimes even before it's begun. Buying early often means a better price compared to what the unit might be worth at completion, especially in a rising market.
Step 2: Do Your Homework Dive into the local market. Research different developments, neighbourhoods, and—importantly—the developers themselves. A builder’s reputation can go a long way in helping you make a confident purchase.
Step 3: Know Where You Stand Financially Figure out your budget and talk to a mortgage broker about pre-approval. It’s also wise to connect with a financial advisor to get a clearer picture of your long-term commitments. If you're unsure about what different pre-sale projects cost, I’m happy to guide you.
Step 4: Learn the Process Buying a pre-sale is a little different from purchasing a resale home. You’ll be putting down deposits, signing contracts early, and agreeing to a timeline that could change. Understanding these steps ahead of time makes the process much smoother.
Step 5: Pick the Right Location and Project Think beyond the condo itself—what’s nearby? Are there schools, transit, parks, or planned growth in the area? I can help you narrow down options across Greater Victoria, with insights into different neighbourhoods and upcoming developments.
Step 6: Choose Your Unit & Review the Details. Once you've found a development you like, I can help set up an appointment at the sales centre so you can go over layouts, pricing, and finishings. When you're ready to move forward, I’ll walk you through the developer’s contract, disclosure statement, and any addendums—so you know exactly what you're signing.
Step 7: The 7-Day Rescission Period After signing, you’ll have a 7-day window to change your mind—for any reason. Use this time to double-check your financing, review documents with your lawyer, or just take a step back and confirm you’re confident in your decision.
Step 8: Stay in the Loop on Construction Once the deal is in place, it’s all about patience and planning. Keep tabs on construction updates and be prepared for possible delays—these are common. Don’t lock in moving plans until you get the green light.
Step 9: Get Ready for Closing As the completion date approaches, it’s time to finalize your mortgage, plan your move, and make any necessary financial or lifestyle adjustments. I can help you stay organized as things come together.
Step 10: Deficiency Walk-Through Before you take possession, you’ll walk through the unit to check for any issues or unfinished work. This is your chance to flag concerns so they’re addressed before closing.
Step 11: Completion & Move-In Once everything’s finalized—paperwork, payments, and inspections—you’ll get the keys to your new home!
PROPERTY TRANSFER TAX EXEMPTION FOR NEW BUILDS
Buying a pre-sale condo just got more affordable for many British Columbians!
As of April 1, 2024, the Newly Built Home Exemption has been expanded, reducing or eliminating the Property Transfer Tax (PTT) on qualifying purchases of a principal residence:
Full Exemption: If the fair market value of your new home is $1,100,000 or less, you may be eligible for a full exemption from PTT—up from the previous $750,000 threshold.
Partial Exemption: Homes valued between $1,100,000 and $1,150,000 may still qualify for a partial exemption, with the benefit phasing out entirely at $1.15 million.
This is excellent news for pre-sale buyers—especially first-time homeowners—who are looking to reduce closing costs. If you’re considering a pre-sale condo, this exemption could save you thousands of dollars.
Need help figuring out if you qualify? I’d be happy to walk you through the details.
WHAT IF GST IS REMOVED FROM NEW CONSTRUCTION?
There’s growing political momentum around making new homes more affordable. Both Mark Carney and Pierre Poilievre have publicly floated the idea of removing GST from new home construction, particularly to boost housing supply and reduce costs for buyers.
If this policy is implemented, here’s what it could mean for pre-sale buyers:
💸 Lower Upfront Costs
Right now, new construction is subject to 5% GST, which is often added on top of the purchase price—especially for homes priced over $450,000 (where the federal GST rebate doesn’t apply). If GST is removed, that could mean instant savings of tens of thousands of dollars for buyers.
🚀 Increased Demand
Pre-sales could see a surge in buyer interest if GST is lifted. This could lead to more competition for units, particularly in projects that are already well-priced or in desirable locations.
🏗️ More Construction Activity
Removing GST could encourage more developers to launch projects, potentially increasing the supply of new homes across BC. That’s a long-term win for affordability and choice.
📅 Timing Matters
If you’re considering a pre-sale purchase, it’s worth staying informed about when (or if) this exemption is rolled out. Developers may start offering incentives or adjusting pricing based on expected changes.
CURIOUS ABOUT BUYING A PRE-SALE PROPERTY?
I’ve got a helpful PDF guide from BC Financial Services Authority (BCFSA) that explains everything you need to know before making a move on a pre-construction home.
This resource covers:
What a pre-sale actually is
Risks, timelines, and the 7-day rescission period
What to expect in your contract
And more essential details for buyers
Interested in the guide? Just reach out and I’ll send it your way!
I’M HERE TO HELP YOU MAKE AN INFORMED DECISION
Real Estate Professional
301-1321 Blanshard St V8W 0B6
Victoria, BC, V8W 0B6