Presale Condos and BC's New Home Warranty: A 2026 Buyer's Guide

Updated October 30, 2026 with the current BCFSA, BC Housing, CRA and BC tax rules.

A presale lets you lock in a brand-new condo or townhome in Greater Victoria at today's price, often years before you get the keys. In return you take on risks a resale buyer never faces: delays, design changes, a lender's appraisal at completion, and a contract written by the developer. BC law gives you real protections, including a 7-day right to cancel, trust-held deposits and the 2-5-10 home warranty. This guide explains how each one works as of October 2026, what the taxes and rebates are worth, and the questions to ask before you sign.

How a presale works, start to finish

A presale is a contract to buy a strata lot that has not been built, or not finished. Most multi-unit presales in BC are governed by the Real Estate Development Marketing Act (REDMA), which BCFSA administers, and by the Strata Property Act once the strata is created. The new home itself is covered by the Homeowner Protection Act and its warranty rules, which BC Housing administers. Here is the usual sequence.

1. Disclosure statement and marketing

   Before you sign

   The developer files a disclosure statement with the Superintendent of Real Estate before marketing. Under BCFSA policy it may market before it has a building permit and construction financing, but must file an amendment showing both within 12 months, or 18 months for large projects in a BCFSA pilot.

2. You sign; the 7-day clock starts

   7 days

   You receive the disclosure statement, sign an acknowledgment and sign the purchase agreement. You can cancel in writing within 7 days of the later of the two.

3. Deposits

   At signing and on the contract schedule

   Deposits go into trust with a brokerage, lawyer or notary, and are paid in stages if the contract says so.

4. Construction and amendments

   Months to years

   The developer must amend the disclosure statement when material facts change and send the amendments to buyers.

5. Notice of completion

   Per your contract

   When the occupancy permit is issued and the strata plan is deposited, the developer notifies you that the unit is ready and sets the completion date.

6. Pre-delivery inspection

   Before completion

   You walk through the unit and record deficiencies in writing.

7. Completion and possession

   Completion day

   You pay the balance, title transfers and your unit's warranty coverage starts.

8. First annual general meeting

   Within 6 weeks of the trigger

   The developer must hold it within six weeks after the earlier of 50% plus one of the lots being sold or nine months after the first sale, and hand over plans, warranties and records.

The disclosure statement and your 7-day right

What the developer must disclose

REDMA generally applies to developments of five or more units. Before marketing, the developer must file a disclosure statement that plainly discloses all material facts without misrepresentation. Before you sign, it must give you a copy, allow you a reasonable opportunity to read it, and get your signed receipt. Since April 1, 2025, new disclosure statements must open with BCFSA's "Summary of Pre-sale Risks and Buyer Rights", a short form you initial that points to the sections that matter most. BCFSA's consumer guide highlights the estimated construction dates (section 5.1), the estimated strata fees (3.8), the proposed bylaws (3.5), parking (3.6) and your rights and obligations (7.2).

Disclosure does not stop when you sign. If the statement becomes inaccurate or misleading, the developer must promptly file an amendment, deliver it to buyers, and stop marketing until it does. In 2026 the BC Supreme Court showed how seriously courts take this: in a case about the Lumina Eclipse project in Burnaby (2026 BCSC 1598), it declared 39 presale contracts unenforceable against the buyers because the developer had not amended its disclosure statement to reveal a stop-work, a suspended building permit, suspended warranty coverage and other problems. If a filed statement contains a misrepresentation, buyers can also sue for damages, generally within two years of learning of it.

The 7-day rescission right

• How long: 7 days after the later of the date you signed the purchase agreement and the date you gave the developer your written acknowledgment that you had a chance to read the disclosure statement.
• How: written notice served on the developer. Follow the method set out in the disclosure statement and keep proof of delivery.
• Cost: none. The deposit holder must promptly return your deposit.
• No statement, no deadline: if the developer never gave you a required disclosure statement, you can generally rescind at any time, subject to limited exceptions.
• Not for assignees: someone who takes over a contract by assignment does not get the 7-day right.

Small projects are different. Duplexes, triplexes and fourplexes built under BC's newer small-scale multi-unit housing rules can be sold before completion without a REDMA disclosure statement, and so without the 7-day right. If you are buying in a project of fewer than five units, ask your lawyer what protection the contract gives you, and read our guide to suites and Bill 44 zoning in Victoria.

The developer's other obligations

Deposits and how they are protected

REDMA does not set a deposit amount; your contract does. Deposits are commonly paid in instalments: one on signing and more on fixed dates or construction milestones. Whatever the schedule, the developer must promptly place every deposit with a brokerage, lawyer or notary, who holds it in trust in a BC savings institution for both you and the developer. It can be released only in limited cases, such as completion, your written consent, a court order or your default.

The figures are hypothetical; every developer sets its own schedule. Before you sign, make sure you can pay every instalment on time, because missing one can put you in default.

Deposit protection insurance

A developer that wants to use your deposits for construction or marketing, instead of leaving them in trust, must first buy a deposit protection contract from an insurer and give you the required notice. The trustee releases the money only after receiving that contract and the developer's certification that your rescission period has passed. If the developer then fails to complete, the insurance stands behind the deposits that were released. Ask whether your deposits will stay in trust or be released under deposit insurance, and who the insurer is.

If the project is cancelled, BCFSA's consumer guide says the developer must return your deposit, but is not required to compensate you for anything else, such as the rise in prices while you waited. If you default, you can lose your deposit and be sued for the developer's losses on resale.

Completion dates, delays and changes

Estimated completion and outside dates

The disclosure statement gives an estimated completion window, but the date that matters is in your contract. Most contracts allow the developer to extend completion for delays beyond its control and set an outside date, sometimes called a sunset date, after which either side may end the contract and the deposit is returned. Courts have enforced these clauses as written. In 2025 the BC Court of Appeal (Anderson Square Holdings Ltd. v. Zhang, 2025 BCCA 288) overturned a $13.1 million award to presale buyers of a Richmond project, finding that the outside date was a "drop-dead date" that ended the contracts, not a promise to finish by that date. If prices have risen by then, a developer may be able to cancel and resell at today's prices. BCFSA's guide also warns that where construction runs past a contract date, a developer may offer the unit at a higher price, leaving you to pay more or cancel and take your deposit back.

Size, layout and finish changes

Contracts commonly let the developer change layouts, reduce floor area and substitute finishes of similar quality. Some contracts adjust the price or let you cancel if the area shrinks by more than a set percentage; many do not. Read the clauses on area, finishes, parking and storage, and ask whether your parking stall will be limited common property or a lease, because your rights differ.

Strata fees and occupancy

Strata fees in the disclosure statement are estimates, and fees, insurance and property tax usually rise over time. The balance of your price is due when the developer confirms the unit is ready to occupy. If your contract allows you to move in before title transfers, ask in writing what you will pay during that period and what rights you have if completion is delayed.

Financing and appraisal risk at completion

A mortgage pre-approval rarely lasts until a building is finished, so you will usually qualify again close to completion, at the rates and rules in force then and with your income at that time. The lender will also appraise the finished unit. If the appraisal comes in below your contract price, the lender lends against the lower figure and you make up the difference in cash.

Ways to reduce the risk: keep a cash buffer, ask your lender about rate holds and how long they last, avoid taking on new debt or changing jobs before completion, and confirm the lender will finance this building type. Our guide to mortgage financing in Victoria covers qualification and the stress test.

The pre-delivery inspection and deficiencies

Before completion, developers normally invite each buyer to a pre-delivery inspection (PDI) walk-through. It is your chance to record visible defects and unfinished work while the developer still wants your money. Take it seriously.

1. Bring help and tools. Consider hiring a home inspector who does new-construction inspections; bring a phone charger to test outlets, a flashlight and a copy of your contract's finish schedule.
2. Test everything. Run every tap, flush toilets, run appliances, open and lock every window and door, check the balcony door seals, the floors, the drywall and the caulking.
3. Get it in writing. Make sure every item is on the signed PDI form, with photos. Keep a copy.
4. Agree on timing. Ask when listed deficiencies will be fixed and how you will be told.
5. Keep watching after you move in. Many problems appear only in the first heating season or the first heavy rain. Report them in writing as described below.

Problems with the common property, such as the roof, lobby or parkade, belong to the strata corporation, which has its own 15-month materials and labour coverage. Encourage your new council to commission a warranty review before key warranty periods end.

The 2-5-10 home warranty

Under the Homeowner Protection Act, new homes built by licensed residential builders must carry third-party home warranty insurance from an approved provider. The regulation sets these minimums:

Limits, deductibles and exclusions

Providers may cap claims, but not below these amounts: for a strata unit, the lesser of the original purchase price and $100,000; for a detached (fee simple) home, the lesser of the price and $200,000; and for common property, the least of the total original purchase price, $100,000 times the number of units, and $2.5 million per building. A provider cannot charge you a deductible for covered repairs or make you sign a release first. If a covered defect makes your home uninhabitable, reasonable living-out expenses are covered, and any daily cap must be at least $100.

Providers may exclude, among other things, normal wear and tear and shrinkage, damage from poor maintenance or your own alterations, landscaping, detached non-residential structures, and losses you failed to mitigate or report promptly. They cannot exclude recreational or amenity facilities in common property, or parking structures in multi-unit buildings.

When coverage starts and who it covers

For a strata unit, coverage starts on the earlier of the date you first occupy it and the date title transfers. Common property coverage starts on the first such date for any unit in the building, so it can begin well before you move in. The warranty stays with the home when it is resold, until it expires.

Making a claim

1. Find your documents. Your warranty certificate names the provider and the policy number; keep it with your purchase documents.
2. Give written notice. Notify both the warranty provider and the builder in writing, with reasonable detail, within a reasonable time after you discover the defect and before the coverage expires. Written notice to the provider also satisfies your duty to mitigate.
3. Limit the damage. If a defect needs immediate attention, such as an active leak, take reasonable steps to stop it from getting worse and keep receipts.
4. Let the provider investigate. Providers must contact you promptly, avoid unreasonable delay and give written reasons if they deny a claim.
5. Escalate if needed. Policies include a dispute process; ask BC Housing or a lawyer if you reach an impasse.

Check the builder and the home

BC Housing's New Homes Registry, searchable by address or legal description, shows whether a home has home warranty insurance or was built under an exemption. Use it before you sign for any new or nearly new home, and ask the developer to confirm in writing that the builder is licensed and the units are enrolled.

Owner-built homes are the main exemption. An owner-builder must get an Owner Builder Authorization from BC Housing, must live in the home for the first year and cannot sell or rent it during that time. If the home is sold within ten years, the seller must give the buyer an Owner Builder Disclosure Notice before the contract is signed, and every later seller in that period must pass it on. An owner-built home usually has no third-party warranty, so price that risk in.

GST, rebates and property transfer tax

New homes in BC carry 5% GST, usually on top of the price unless the contract says otherwise. There is no provincial sales tax on the purchase of real property. Three programs can reduce your costs.

For the first-time buyers' rebate, you must be at least 18, a Canadian citizen or permanent resident, and must not have lived in a home owned by you or your spouse or common-law partner in the year of purchase or the four calendar years before it. You must also be the first person to live in the home after it is built, and neither you nor your partner can have received the rebate before. Commentary on the rebate indicates that assigning a builder agreement signed before the cut-off date does not create eligibility, so if you are buying an assignment, confirm with your lawyer or accountant whether the rebate is available.

The PTT exemption applies only to the first registration of a newly built home with a completed improvement, on land of 0.5 hectares or less for the full exemption. Our page on BC real estate transaction taxes covers the transfer tax rates, the first-time buyers' program and the other taxes that can apply.

Assignments

An assignment transfers your rights and obligations under a presale contract to someone else before completion, usually for your deposit back plus a profit, or sometimes at a loss.

Developer consent and reporting

If a developer permits assignments, its purchase agreements must prohibit assignment without the developer's prior consent. Before consenting, the developer must collect information about both parties and the price, and report every assignment to the province's Condo and Strata Assignment Integrity Register (CSAIR), which has applied to assignments signed since January 1, 2019. Many contracts also charge an assignment fee, and a developer can refuse consent even if you have a buyer. If your assignee fails to complete, you typically remain liable to the developer.

Taxes on an assignment

• GST on the assignment. Since May 7, 2022, every assignment of a contract for a newly built home is taxable for GST. The assignor collects GST on the assignment price; the part that reimburses deposits paid to the builder is excluded only if the assignment agreement says so in writing.
• BC home flipping tax. From January 1, 2025, the assignor's profit is taxed at 20% if the contract is assigned within 365 days of acquiring it, at a declining rate up to day 730, and not at all after that. Presale assignors cannot use the principal residence deduction, though an exemption exists where completion was delayed more than 365 days. A separate return is due within 90 days of the sale.
• Income tax. The profit is also reportable for federal income tax, and a short holding period can mean it is taxed as business income. Get tax advice before you assign.
• Property transfer tax. Paid by whoever takes title when the transfer is registered at completion.

Buying from a builder or from an assignor

With an assignment, your lawyer should review the original contract, every disclosure statement amendment, the developer's consent and the deposit history before you pay the assignor anything. Make sure the payment to the assignor goes through a lawyer's or notary's trust account, not directly.

Presales in Greater Victoria

Greater Victoria's new construction comes in a few broad forms. Downtown Victoria, Harris Green and Vic West have concrete towers and mid-rises, often with amenities and underground parking. Langford, Colwood and the rest of the Westshore have had steady waves of wood-frame condos and townhome projects. Saanich, Esquimalt, View Royal and Sidney add mid-rise condos and townhouse complexes along their main corridors, and BC's 2023 small-scale multi-unit housing rules are bringing more duplex, triplex and fourplex projects to established neighbourhoods across the region.

Each brings different questions. Concrete towers take longer to build, so completion risk and appraisal risk run longer. Wood-frame projects are quicker but put more weight on the envelope warranty and the developer's record with rainscreen and roof details. Small multiplex projects may fall outside REDMA entirely. Compare presale pricing with finished buildings using our study of Victoria new condo prices per square foot, and compare a presale's estimated strata fees with similar completed buildings nearby. Before committing to any presale, read our guide to buying a condo in Greater Victoria, since you will become an owner in a strata like any other.

Questions to ask the developer

• Has the building permit been issued, and is construction financing in place? If not, when is the amendment due?
• Will my deposits stay in trust or be released under deposit protection insurance? Who is the insurer?
• What is the estimated completion window, and what is the outside date? Under what conditions can either be extended?
• What happens to my deposit, and to interest on it, if the project does not proceed?
• How much can the floor area change before I can cancel or get a price adjustment?
• Is my parking stall and storage locker limited common property, part of the strata lot, or a lease?
• How were the estimated strata fees calculated, and do they include a realistic insurance premium?
• Who is the warranty provider, and is the builder licensed with BC Housing?
• Are assignments allowed? What is the fee, and what conditions apply?
• What projects has this developer completed, and were they on time? Can I see them?
• Who prepares the pre-delivery inspection, and how are deficiencies tracked and fixed?

Presale checklist

1. Before you sign: read the Summary of Pre-sale Risks and Buyer Rights, the full disclosure statement and every amendment, and the purchase agreement. Check the developer's past projects and the builder's licence.
2. Within the 7 days: have a lawyer or notary review the contract, confirm your financing plan with a lender, and decide. Cancel in writing if you are not sure.
3. Deposits: diarize every instalment, pay into trust only, and keep receipts.
4. During construction: read each amendment as it arrives; keep a cash buffer for an appraisal shortfall; avoid new debt.
5. Before completion: renew your mortgage approval, arrange home insurance, book movers with flexible dates, and confirm the GST rebate and PTT exemption paperwork with your lawyer.
6. At the PDI: inspect thoroughly, ideally with an inspector, and get every deficiency in writing.
7. After completion: file your warranty certificate, report defects in writing to the provider and builder, and diarize the 12-month, 2-year, 5-year and 10-year dates.

Questions buyers ask

Photo from Wikimedia Commons, used under the licence linked in the caption.