What Are Presale Condos? The Complete Guide for BC Buyers

If you are looking to buy real estate in British Columbia, you have probably heard the word "presale" thrown around. You see the signs, the presentation centres, and the online ads. But if you have never bought one before, the concept can feel a bit confusing. How do you buy a home that does not exist yet? A presale condo is exactly what it sounds like: you are purchasing a condo before it is fully built. You are not buying a physical unit today; you are buying a contract that secures your right to purchase that unit once construction is finished, subject to the terms of the disclosure statement and purchase agreement. For many buyers in BC—especially in fast-growing areas like Surrey, Langley, and the Fraser Valley—presales have become the smartest way to enter the market. Let us break down exactly how they work, the timeline, the financial benefits, and the risks you need to know. ## How the Presale Process Works: A Step-by-Step Timeline Buying a presale is very different from buying a resale home. With a resale home, you get a mortgage, hand over the money, and move in two days later. With a presale, the process is spread out over several years. ### Step 1: The Search and Selection You start by visiting a presentation centre (or having your realtor get you VIP access before the public launch). You look at floor plans, review the finishings, and select your exact unit. You will know the price, the layout, and the expected completion date. ### Step 2: The Contract and the 7-Day Rescission Period Once you select a unit, you sign a purchase agreement. In BC, you are legally protected by a **7-day rescission period**. This means you have seven days to review the contract with your lawyer, get your finances in order, and think it over. If you change your mind within those seven days, you can walk away and get your initial deposit back without any penalty. ### Step 3: The Deposit Structure You do not need a mortgage right away. Instead, you pay a deposit to secure the unit. This is usually 5% to 10% of the purchase price, but it is not paid all at once. It is broken down into a structure. For example, on a $500,000 condo: | Deposit Phase | Amount | |---|---| | Initial Deposit | $25,000, when you sign the contract | | Second Deposit | 5% (less the $25,000) after the 7-day rescission period | | Third Deposit | 10% six months later | | Fourth Deposit | 5% twelve months later | > **Note:** In the current market, many developers in Surrey and Langley are offering reduced deposit structures, sometimes as low as 5% to 10% total. ### Step 4: The Waiting Period Now, you wait. The developer builds the building. This can take anywhere from two to four years depending on the size of the project. During this time, you do not have a mortgage payment, you do not pay property taxes, and you do not pay strata fees. You just continue living your life while your future home is built. ### Step 5: Completion and Closing About a month before the building is finished, you will finalize your mortgage. You will do a final walkthrough of your unit to ensure everything is perfect (called a **deficiency walk-through**). Then, on the completion date, your mortgage funds are transferred to the developer, you pay your closing costs, and you get the keys. ## The Financial Benefits of Buying Presale Why do so many people choose to buy a home that they cannot move into for three years? It comes down to leverage, forced savings, and tax breaks. ### Time to Save If you buy a resale home today, you need your full down payment and closing costs right now. With a presale, you only need your deposit. You have two to four years to save up the rest of your down payment, pay off other debts, and get your finances in perfect shape before your mortgage begins. ### Building Equity Before You Move In When you buy a presale, you lock in the purchase price today. If the real estate market goes up over the next three years, your property value goes up with it. Imagine you buy a presale in Langley today for $500,000. Over the next three years, the market appreciates by 15%. You just made **$75,000 in equity** without ever making a mortgage payment. ### Massive Tax Savings for First-Time Buyers In 2026, the BC and federal governments introduced massive tax breaks for new builds. If you are a first-time buyer purchasing a presale under $835,000, you are completely exempt from the BC Property Transfer Tax (PTT). Furthermore, under the new Bill C-4, you are also exempt from the 5% GST. On a $600,000 presale, that is nearly **$30,000 in taxes you simply do not have to pay**. ### Brand New Everything When you buy a presale, you are the first person to ever live in it. The appliances are new, the floors are new, and the building is covered by BC's **2-5-10 New Home Warranty**. You do not have to worry about a broken furnace or a leaky roof for a very long time. ## The Risks and How to Protect Yourself No real estate investment is completely without risk. When buying a presale, there are three main things you need to be aware of: ### Market Fluctuations Just as the market can go up, it can also go down. If you buy a presale for $500,000 and the market drops, your condo might only appraise for $470,000 when it is time to close. If that happens, the bank will only give you a mortgage based on the $470,000 value, and you will have to come up with the difference in cash. This is why you should always buy a presale with a **long-term mindset**, not as a quick flip. ### Developer Delays Construction is complicated. Weather, supply chain issues, and permit delays can all push back the completion date. Your contract will have an "outside date"—the absolute latest date the developer can finish the building. You must be flexible with your living situation as the completion date approaches. ### Developer Insolvency What happens if the developer goes bankrupt before the building is finished? This is a common fear, but in BC, you are highly protected. Your deposit money is not given to the developer to fund construction; it is held safely in a **lawyer's trust account**. If the project fails, your deposit is returned to you. ## Is a Presale Right for You? Buying a presale is an incredible strategy for the right buyer. It is perfect for first-time buyers who want time to save, investors looking for hands-off equity growth, and downsizers planning for their future. However, it requires patience. If you need a place to live next month, a presale is not the answer. But if you want to lock in today's prices and secure a brand new home in a growing community like Surrey or Langley, it is one of the smartest moves you can make. ## Frequently Asked Questions **What is a presale condo?** A presale condo is a home you purchase before construction is complete. You sign a contract with the developer and pay a deposit, then complete the purchase when the building is finished. **How much deposit do I need for a presale in BC?** Typically 5% to 20% of the purchase price, paid in installments over several months. Many developers in 2026 are offering reduced structures as low as 5% to 10% total. **Can I back out of a presale contract?** Yes, you have a 7-day rescission period after signing where you can cancel and receive your full deposit back. After that period, backing out may result in losing your deposit. **Are presale condos a good investment?** Presales allow you to lock in today's price and build equity while the home is being built. Combined with tax savings of up to $38,000 for first-time buyers, they can be an excellent investment strategy. --- *Want to learn more about the presale process? We help buyers navigate the presale market every single day. Book a quick, no-pressure discovery call and we can look at the best presale opportunities in the Fraser Valley right now.*