Buying a presale condo in British Columbia can be a great way to secure a new home before it’s even built. But one aspect that often confuses buyers is the deposit structure—how much you need to pay, when those payments are due, and what protections you have. This guide will walk you through every stage of the pre-construction condo payment schedule in BC, including how deposits work, why they matter, and what to expect along the way.
What Is a Presale Condo Deposit?
A presale condo deposit is money you put down to reserve a unit in a development that hasn’t been constructed yet. Unlike a resale purchase—where you typically pay a small deposit and the rest at closing—a presale usually involves a larger total deposit (often 15–25% of the purchase price), paid in several installments over the course of the building’s construction.
Why developers want these deposits:
- Buyer Commitment: A sizable deposit shows you’re serious about following through.
- Project Financing: Developers can use deposits as part of their financing package.
- Discouraging Speculators: Higher deposits reduce the chance buyers will walk away if markets fluctuate.
Keep in mind that every dollar you pay as a deposit goes toward your down payment. When the building completes and it’s time to close, the deposits you’ve already paid will be factored into the final purchase price.
Typical Deposit Schedules in BC
Although exact schedules vary by project, presale condo deposits in BC tend to follow a similar pattern:
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Initial Deposit at Signing
- Often a small, fixed amount (e.g., $1,000–$5,000) to secure your unit.
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After 7-Day Rescission
- BC law gives you a 7-day “cooling-off” period after signing. If you still want to proceed, you typically top up to 5–10% of the purchase price at this point.
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Mid-Construction Installments
- Additional deposits (5–10% each) usually come due at specific intervals—often 6, 12, and 18 months after signing, or tied to construction milestones like excavation or finishing certain floors.
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Final Deposit
- Some developers require the last portion before completion, bringing your total deposit to around 15–25% of the condo’s price.
These installments let buyers spread out the financial commitment instead of paying one large sum upfront.
Understanding the Timeline: Step by Step
1. Signing the Contract
You’ll often pay a small reservation deposit (around $1,000–$5,000) right away. This reserves your specific unit under a presale agreement.
2. Seven-Day Rescission Period
In British Columbia, you have a 7-day window to change your mind for any reason and receive a full refund of your initial deposit. This is a unique protection designed to give buyers time to review the contract in detail.
3. Post-Rescission Deposit
If you choose to go ahead after the 7-day period, you’ll top up your deposit to meet the first major installment (often 5–10%). At this point, the contract is firm—meaning you typically forfeit what you’ve paid if you back out later.
4. Additional Payments During Construction
Depending on the project, more deposits will be due over the next several months or years. Each payment stage is usually spelled out in your contract, including the specific amounts and dates (or construction milestones).
5. Completion & Closing
When the building is finished, you’ll make your final payment (usually via mortgage plus any remaining cash you need). Your previously paid deposits count toward your down payment and reduce your mortgage requirements at closing.
How BC Compares to Other Provinces
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Cooling-Off Periods:
- In BC, buyers get a 7-day rescission period for presale condos.
- In Ontario, it’s 10 days for pre-construction units.
- Some provinces, like Alberta, don’t offer a mandated cooling-off period for new condos.
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Deposit Protection:
- BC requires developers to hold your deposit in trust, ensuring it’s safe if the project is canceled.
- Ontario also uses trust accounts and offers deposit insurance through Tarion (though with specific limits).
- The essence is similar across major provinces—your deposit shouldn’t be at risk if the developer fails to deliver.
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Typical Amounts:
- BC presales commonly land in the 15–25% range.
- Toronto’s new condos often follow a similar deposit structure, but with slightly different timelines.
- Other regions may have lower or higher thresholds depending on local market norms.
Are Your Deposits Protected?
Many buyers worry about placing tens of thousands of dollars into a home that doesn’t yet exist. Fortunately, BC laws offer several safeguards:
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Trust Accounts
By law, developers must place presale deposits into a lawyer’s or brokerage’s trust account. That means they can’t freely spend your deposit. If the project doesn’t proceed, your money is there to be refunded. -
Cancellation by Developer
Should the developer cancel the project, you’re entitled to a full refund of your deposit (usually returned within a specified timeframe). -
7-Day Rescission
During the first week after signing, you can cancel for any reason and get 100% of your initial deposit back. -
Material Changes
If the developer makes a significant alteration to the project (such as drastically changing floor plans or completion timelines), you may have grounds to exit the contract and reclaim your deposit. -
Assignment Possibility
Many presale contracts allow you to “assign” your purchase to another buyer if you can’t close. While this typically comes with fees and developer approval, it’s an alternative to losing your entire deposit if your situation changes after the rescission period.
Tips for Managing Your Presale Deposits
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Budget Ahead
- Know exactly when each deposit installment is due. Mark the dates in your calendar and plan your savings accordingly.
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Stay in Contact
- Keep in touch with the developer’s sales team or your realtor. They’ll remind you of upcoming payments, but it’s good to be proactive.
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Use the Right Payment Method
- Developers often request bank drafts or wire transfers. Avoid personal cheques unless explicitly allowed.
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Review the Disclosure Statement
- Developers in BC must provide a document outlining project details and risks. Check it for deposit timelines, trust info, and any special conditions.
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Speak to a Lawyer or Realtor
- Presale contracts can be complex. A professional can explain your obligations, highlight any unusual clauses, and ensure everything aligns with BC’s legal requirements.
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Keep Records
- Save all deposit receipts and related emails. This paper trail is invaluable if you need to reference specific payment dates or amounts later.
Final Thoughts
Understanding presale condo deposit structures in BC is essential if you’re thinking about buying a home before it’s built. While the staged payments and longer timelines might feel unfamiliar at first, they can also provide benefits—such as locking in a price early and spacing out your financial commitments. Just make sure to read your contract carefully, mark deposit deadlines, and take advantage of the 7-day rescission period to review all the details.
If you’d like more insights on BC’s presale market, along with new development updates and expert tips, sign up for our PresaleHomes.ca newsletter. Staying informed will help you make confident decisions and stay on top of each step in your pre-construction condo payment schedule.
Happy house hunting!
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