What Is a Presale Condo Contract in British Columbia?

A presale condo contract is an agreement to buy a unit that has not been built yet, or is still under construction. You commit to a price, pay deposits, and wait, sometimes for years, until the building is finished and the sale closes.

That is very different from buying a resale unit, where you can see the home, read its strata records and close within weeks. This article explains what the presale contract is, what protections British Columbia law gives you, and what to check before you sign.

This article covers the law of British Columbia.

What a presale contract is

In plain terms, you are buying a promise. The developer agrees to deliver a finished unit later, and you agree to pay the price, usually in stages, with a deposit first. A resale purchase is a sale of an existing home by its current owner, and you can inspect what you are buying.

In British Columbia, the Real Estate Development Marketing Act (REDMA) applies to a developer who markets a development unit. Development property generally means land with 5 or more subdivision, bare land strata, strata, time share or leasehold units, or 2 or more cooperative interests or shared interests in land. Some sales are exempt, such as developer-to-developer sales, leases of three years or less, and low-cost cooperative interests of $5,000 or less, and the superintendent may also exempt a person, land or transaction.

The disclosure statement is the key document

A developer must not market a development unit unless it has prepared and filed a disclosure statement. The 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 unit.

Before you sign, the developer must give you the disclosure statement, allow you a reasonable opportunity to read it, and obtain your written acknowledgment that you received it. Since April 1, 2025, a Summary of Pre-sale Risks and Buyer Rights form must be attached to the front of a pre-sale disclosure statement filed under REDMA Policy Statement 14, although it is not required for statements filed earlier or for later amendments of them.

Filing with BCFSA does not mean the project has been checked. The superintendent has no duty to assess the merits of a disclosure statement or check it for misrepresentations.

What to look for in the contract and statement

Questions such as whether the developer can change the unit size, layout, price or completion date are answered by the purchase agreement and the disclosure statement together. Do not assume there is a standard allowance. Read those terms closely.

• The deposit amount, when each payment is due, and who holds the money
• Any right of the developer to change the unit, the price or the completion date
• Whether you can assign (sell) the contract, and on what conditions
• Warranty and insurance information in the disclosure statement
• Any statement that the developer may use deposits for construction
• The address for serving written notices on the developer

Your right to cancel and other protections

You may rescind (cancel) by serving written notice on the developer within 7 days after the later of the date of the purchase agreement and the date the developer obtained your written acknowledgment of receiving the disclosure statement. The notice is served by delivering a signed copy in person or by registered mail to the developer or its brokerage at the address in the disclosure statement or purchase agreement.

If you were entitled to a disclosure statement but never received one, you may rescind at any time, even after title has transferred. A purchase agreement is also not enforceable against you by a developer who has breached any provision of Part 2 of REDMA, with exceptions where there was no misrepresentation of a material fact reasonably relevant to you, or where certain corrections were made on time.

If a disclosure statement contains a misrepresentation, you are deemed to have relied on it and may sue for damages, but the action may not start more than 2 years after the misrepresentation first came to your knowledge. It is a defence if the defendant proves you knew of the misrepresentation when you received the statement.

Warranty and what to do before you sign

A person may not build a new home unless it is registered for home warranty insurance covering at least 2 years for materials and labour, at least 5 years for the building envelope, and at least 10 years for structural defects. Owner builders building for personal use are an exception.

Before you sign, take the time the law gives you. Read the disclosure statement and contract in full, note the 7-day window, and have a lawyer review both. Your mortgage approval, your budget for closing costs and taxes, and your plans if you cannot complete are all worth discussing before you commit.

Frequently asked questions