Can a BC Developer Change Your Presale Price or Completion Date?

Many presale buyers wait years for completion, and a letter saying the price has gone up or the move-in date has slipped can be alarming. You may wonder whether the developer is allowed to do that at all.

The short answer is that it depends on what your contract and the disclosure statement say. This article explains how to approach the question in British Columbia and which rights may apply. It is general information, not advice on your contract.

This article covers the law of British Columbia.

Start with your contract and disclosure statement

There is no simple rule that lets you read off how far a developer can move a price, a unit size or a completion date. Whether it may do so is decided by the wording of your purchase agreement and the disclosure statement. Look for clauses on price adjustments, estimated completion dates, changes to unit size or layout, and what happens if the developer cannot complete on time.

The disclosure statement must plainly disclose all material facts and must not contain a misrepresentation. A material fact includes a fact that affects, or could reasonably be expected to affect, the value, price or use of a development unit. A price or completion change can therefore be a material fact, depending on the circumstances.

When an amended disclosure statement is needed

If the developer learns that a disclosure statement is non-compliant or contains a misrepresentation, it must promptly file a new statement or an amendment and give copies to affected purchasers.

• Ask whether the change contradicts something the original statement said.
• Ask whether you received the amendment, and keep the date you got it.
• Compare the amendment with the original line by line.
• Remember that the Summary of Pre-sale Risks and Buyer Rights form is not required on later amendments of statements filed before April 1, 2025.

Your rights if a change was not properly handled

The exceptions matter. The agreement stays enforceable if the breach involved no misrepresentation of a material fact reasonably relevant to you, or if the developer did not know of the misrepresentation and corrected it by an amendment filed within 30 days of becoming aware and no later than 14 days before title is to transfer, and provided to you.

It is also a defence if the defendant proves you knew of the misrepresentation when you received the statement.

Delays, deposits and tax consequences

If you want to end the contract, you and the developer may jointly certify that the agreement has ended and how the deposit is to be split, and the trustee must then pay accordingly. Otherwise a trustee may release a deposit only in listed cases, such as written consent of both sides, a court order, or a purchaser default where the developer elects to cancel and the deposit is forfeited under the agreement.

If you plan to assign your contract, a delay can matter for tax. A presale assignment may be exempt from the home flipping tax where the estimated completion date on the presale contract is delayed by more than 365 days. Assignments are also taxable in other ways, so speak to a lawyer or accountant before relying on this.

BCFSA does not enforce purchasers' contract rights, which fall under contract law, but it investigates complaints and can take regulatory action against developers, for example over an inadequate disclosure statement or mishandled deposit.

What to do next

• Get the change in writing and note the date you received it.
• Do not sign a new agreement or release until you understand what you are giving up.
• Gather your purchase agreement, original disclosure statement and every amendment.
• Highlight the clauses on price, size and completion date.
• Ask a lawyer whether the change was permitted and whether a rescission or damages right may apply.
• Keep deposit receipts and the name of the trustee holding your deposit.

Frequently asked questions