Presale condos in BC: deposits and assignments

How the deposit works

You pay an initial deposit when you sign, and sometimes more deposits later on a set schedule. The contract sets the amounts. The balance is due at completion, when the unit is ready.

By law the deposit goes into a trust account at a savings institution in BC, held by a lawyer, a notary or the licensed firm marketing the project. The developer can only use deposit money if it has a deposit protection contract, which is insurance that pays you back if things go wrong.

Your 7-day cancel

You can cancel by written notice within 7 days after the later of signing and acknowledging you had the chance to read the disclosure statement. Use that week. Check the completion dates (section 5.1), the estimated strata fees (3.8), parking (3.6), the proposed bylaws (3.5) and your rights (7.2). You also get a Summary of Pre-sale Risks and Buyer Rights.

The risks to plan for

• Delays. If the project is never finished, you get the deposit back but no compensation.
• Changes to layout, size or finishes, within what the contract allows.
• A low appraisal at completion. If the bank values it under your price, you cover the gap in cash.
• Not being able to complete. You can lose the deposit and the developer can sue for the shortfall and costs.

Using your FHSA or RRSP

This trips people up. A tax-free FHSA withdrawal needs a written agreement and the home acquired before October 1 of the year after you take the money out. The Home Buyers’ Plan has the same deadline, and a condo counts as acquired on the day you’re entitled to move in. So for a presale finishing in a few years, plan to pay deposits from cash and use the FHSA and HBP closer to completion.

Tax at completion

Property transfer tax on a presale is based on the total you pay, including upgrades and any assignment price. A new unit nobody has lived in can get the newly built home exemption: no tax up to $1,100,000, partial up to $1,150,000, if you move in within 92 days.

GST is 5%. The first-time buyer GST rebate covers up to $50,000, which is all of it up to $1 million, for agreements signed from March 20, 2025 to the end of 2030.

Assignments

An assignment is when the original buyer sells their contract before completion. The contract may allow it, charge a fee, cap it or ban it, and the developer’s consent is usually needed. The original buyer typically stays on the hook if the new buyer doesn’t complete.

Buying one? You don’t get the 7-day cancel, transfer tax is on the original price plus the assignment amount, and GST may apply depending on the original contract. If that contract was signed before March 20, 2025, you can’t get the first-time buyer GST rebate.

Selling one? Assign within 365 days of buying in and BC’s home flipping tax is 20% of the profit, falling to zero at 730 days. A $50,000 gain inside the first year means $10,000 of tax, with no primary residence deduction.

Sources

• Consumer guide to pre-sale real estate purchases, BC Financial Services Authority. Checked October 2026.
• Real Estate Development Marketing Act, BC Laws. Checked October 2026.
• Consumer guide to assignments, BC Financial Services Authority. Checked October 2026.
• Withdrawals and transfers out of your FHSAs, Canada Revenue Agency. Checked October 2026.
• How to participate in the Home Buyers’ Plan, Canada Revenue Agency. Checked October 2026.
• Pre-sold strata unit (property transfer tax), Government of BC. Checked October 2026.
• Newly built home exemption, Government of BC. Checked October 2026.
• First-time home buyers’ GST/HST rebate, Canada Revenue Agency. Checked October 2026.
• BC home flipping tax: pre-sale contracts, Government of BC. Checked October 2026.

Rules on this page last checked: October 30, 2026. Calculator rules last verified: October 26, 2026. See how the calculators work.