Buying a newly built home in BC is very different from a resale purchase. Contracts are longer, deposits are larger, and developers hold most of the cards — unless you know what to look for.
<p>Buying a brand-new home — whether a presale condo, a newly built house, or a developer townhouse — comes with legal issues that simply don't exist in a standard resale transaction. BC has some buyer protections, but the contracts are written by developers and heavily favour them. Here's what to watch for.</p>
<h2>Presale Contracts Are Not Standard</h2>
<p>Unlike a standard Contract of Purchase and Sale used in resale transactions, a presale contract is drafted by the developer's lawyers and can be 40–100 pages long. The price is fixed, but almost everything else favours the developer: completion dates, unit specifications, changes to common areas, and even your ability to assign the contract.</p>
<p>BC law gives buyers a <strong>7-day rescission period</strong> for presale condo purchases — you can cancel for any reason within 7 days of receiving the disclosure statement, with your deposit returned. After those 7 days, you are bound.</p>
<h2>Deposits Are Larger and Less Protected</h2>
<p>Presale deposits in BC are often 5–20% of the purchase price, paid in stages. These funds are supposed to be held in trust — but if the developer goes into receivership, recovering your deposit can be complicated and slow. BC's <em>Real Estate Development Marketing Act</em> requires disclosure but does not fully insulate buyers from developer insolvency risk.</p>
<p>Always confirm that your deposit is being held by a lawyer or licensed real estate brokerage in trust — not deposited directly with the developer.</p>
<h2>Completion Dates Are Rarely Guaranteed</h2>
<p>Most presale contracts include "outside completion dates" — the developer's outer limit for completing the project — which can be 2–4 years from signing. Delays are common and generally permitted under the contract. If you've arranged bridge financing or need to vacate your current home, a delay can be extremely costly.</p>
<p>Review the contract for how many extensions the developer can grant unilaterally, and what — if any — compensation applies to delays.</p>
<h2>Specification Changes</h2>
<p>Developers typically reserve the right to change finishes, appliances, floor plans, and common amenities before completion. The contract may allow "equivalent" substitutions that are, in practice, quite different from what was shown in the show suite.</p>
<p>Document everything shown to you at the time of purchase — marketing materials, show suite specifications, and verbal promises — and understand which of those are legally binding under your contract.</p>
<h2>BC's New Home Warranty</h2>
<p>All new homes in BC must be covered by a mandatory home warranty under the <em>Homeowner Protection Act</em>. Coverage includes:</p>
<ul>
<li>2 years on labour and materials</li>
<li>5 years on the building envelope (including water penetration)</li>
<li>10 years on the structure</li>
</ul>
<p>Confirm before you complete that the home is enrolled in a warrantor's program. Keep all documentation — it will matter if defects appear years later.</p>
<h2>Assignment Restrictions</h2>
<p>If you're buying a presale to sell before completion ("assign" the contract), check the contract carefully. Many developers now restrict or prohibit assignment without consent, charge assignment fees, or require that any profit be shared with them. Tax implications of assignment sales in BC are also significant and require advice before you proceed.</p>
<p>Getting a lawyer to review a presale contract before you sign is one of the most important steps you can take — and the 7-day rescission period gives you time to do it.</p>
Under BC law, buyers of presale condominiums have 7 days from receiving the developer's disclosure statement to cancel the contract and receive a full refund of their deposit, for any reason. This period only applies to presale condos — not to newly built houses or resale properties.
Presale deposits must be held in trust under BC law, but if a developer enters receivership, recovering deposits can be a lengthy legal process. The trust requirement reduces risk but does not eliminate it. Always confirm your deposit is held by a licensed brokerage or lawyer in trust.
All new homes in BC must carry mandatory home warranty coverage: 2 years on labour and materials, 5 years on the building envelope (water penetration), and 10 years on the structure. Confirm the home is enrolled before you complete the purchase.
It depends on your contract. Many developers now restrict or prohibit assignment without their consent, and some require a share of any profit. Assignment sales also have significant tax implications in BC. Review your contract carefully and get legal and tax advice before proceeding.