Frequently Asked Questions about Presale Condos
What exactly is a presale condo?
A presale condo is a new development unit purchased before construction is complete. When buying presale condos Vancouver developments, you’re purchasing based on floor plans, display suites, and renderings rather than viewing the actual built unit. Your purchase contract outlines the specifications, finishes, and expected completion timeline.
Why should I consider a presale instead of a completed condo?
New condos Vancouver presales offer several advantages: potential price appreciation during construction, extended deposit structures, first choice of units and views, new home warranty coverage, and the ability to be the first occupant. You’re also buying at today’s prices for future completion.
What completion timelines should buyers expect?
Vancouver presale condos typically complete within 2-4 years from sales launch. High-rise concrete developments in areas like Brentwood or Metrotown often require longer construction periods than low-rise wood frame projects.
How do assignments work?
Most new condos Vancouver developments allow assignment sales before completion, subject to developer approval and fees (typically 1-2% of purchase price).
What about GST and PTT?
Preconstruction purchases attract 5% GST, with rebates potentially available for owner-occupiers. Property Transfer Tax applies at completion, with exemptions available for qualified first-time buyers.
What happens if the developer cancels the project?
BC law protects buyers’ deposits through mandatory trust accounts. If a project cancels, deposits must be returned with interest. Major Vancouver developers like Polygon, Bosa, and Concord have strong completion track records & developer due diligence is a good way to mitigate against risk of cancelation.
How does the mortgage process work for presales?
While you should get pre-qualified early, and absolutely be certain you can get financing for completing on the project, final mortgage approval occurs about 60-90 days before completion. Vancouver lenders experienced with presale condos Vancouver can provide rate holds and advice on qualification requirements. We can provide referrals to these mortgage specialists.
What is the typical deposit structure?
For condo presale Vancouver projects, buyers typically provide 15-25% of the purchase price in deposits, usually split into multiple payments throughout the construction period. These funds are held in trust and protected by law.
Can I modify my unit’s finishes after purchase?
Most new condo developments Vancouver offer a limited window for upgrade selections and modifications. Options and timing vary by developer, with luxury developments typically offering more customization choices.
What should I look for in the disclosure statement?
Focus on key elements like completion deadlines, deposit structure, strata fee, unit entitlement, view protection, and amenity details. You will also want to use these documents as a jumping off point to be comfortable with the builder. For Vancouver presale condos, pay special attention to future development plans in the area and potential construction impact.
What is the 7-day rescission period?
BC law provides buyers a seven-day period after receiving the disclosure statement to review all documents with professionals and cancel the contract without penalty if desired.
How does the deficiency inspection process work?
Prior to completion, buyers inspect their unit and document any deficiencies & the developer fixes any agreed upon deficiencies. This is usually a collaborative process. BC’s warranty program covers issues identified during this inspection and subsequent warranty periods.
What are typical maintenance fees for new buildings?
Strata fees for preconstruction vary by building amenities and size but typically start around $0.45-0.70 per square foot. Carefully review the proposed budget in the disclosure statement.
What happens if construction is delayed?
Purchase agreements include outside dates for completion. If the developer exceeds these dates, buyers can typically terminate and receive their deposits back with interest. Contracts for presale condos Vancouver specify these terms & should be understood fully prior to the 7-day rescission period.
