Buying a brand new multiplex home before it is finished

Buying pre-sale means you sign a contract and pay a deposit for a home that is not finished yet, sometimes not started. In British Columbia the rules for this are set out in the Real Estate Development Marketing Act, and they give you protections that a resale purchase does not have: a document that must disclose every material fact, a window in which you can cancel for any reason at all, and a legal requirement that your deposit sits in a trust account rather than in the seller's own bank account.

Most of the buyers we speak to have bought a home before, but never this way. The questions are always the same. How much do I have to put down, and when. What happens to that money. What if the home is late. What do I actually pay on the day I get the keys. What if I change my mind.

This guide answers those questions one at a time. Every rule, threshold and dollar figure on these pages comes from the body that issues it, with the date we checked it, so you can go and read the original yourself.

The short version

  • You can cancel a pre-sale purchase for any reason within 7 days, under section 21 of the Real Estate Development Marketing Act. The 7 days run from the later of the date you signed or the date you gave written confirmation that you had a chance to read the disclosure statement.
  • Your deposit does not go to the seller. Section 18 of the same Act requires it to be held promptly by a brokerage, lawyer, notary public or other prescribed person, in a trust account at a savings institution in British Columbia.
  • Every new home built by a Licensed Residential Builder in BC carries warranty insurance: 2 years on materials and labour, 5 years on the building envelope, and 10 years on the structure, according to BC Housing.
  • A first-time buyer can now get up to $50,000 of GST back on a new home priced at or below $1 million, and a reduced amount up to $1.5 million, under the first-time home buyers' GST/HST rebate that received royal assent in March 2026.
  • Property transfer tax is fully waived on a newly built home up to $1,100,000 in value, with a partial break up to $1,150,000, if you are a Canadian citizen or permanent resident and you live in it.

What makes a pre-sale different from any other purchase

In a normal purchase you look at a finished home, you make an offer, and a few weeks later it is yours. In a pre-sale you are agreeing to buy something you cannot walk through, on a completion date that is often a year or two away and is not yet fixed. That gap is the reason the province regulates these sales separately.

The core document is the disclosure statement. Under section 14 of the Real Estate Development Marketing Act, the seller must file one before marketing the homes, and it must plainly disclose all material facts. Under section 15, they cannot sign a purchase agreement with you until they have given you a copy and you have confirmed in writing that you had a reasonable chance to read it. If something material changes later, section 16 requires a new statement or an amendment that clearly identifies and corrects the problem.

Read that document. It is long and it is dull, and it is also the only place where the things that will annoy you in five years are written down: which parts of the building you share, what the seller is allowed to change without asking you, and what the schedule actually says.

The money, in the order you will part with it

Pre-sale money moves in stages, and the stages are far apart. The deposit comes first and is usually paid in instalments over the months after you sign. The mortgage does not start until near the end, because a lender will not fund a home that does not exist yet. The rest of the money, along with the taxes and legal fees, all lands on completion day.

One practical consequence catches people out. The mortgage rate you were quoted when you signed is not the rate you get. Your lender assesses you again close to completion, on the income and the rates in effect then, not the ones from two years earlier.

When the money is due on a typical pre-sale purchase
StageRoughly whenWhat it is
First depositAt signing, or within daysHeld in trust, not by the seller
Later deposit instalmentsSet dates in your contract, often every few monthsAlso held in trust
Mortgage approvalClose to completionAssessed on your income and rates at that time
Balance of the priceCompletion dayPaid by your lawyer or notary from your mortgage and savings
Taxes and closing costsCompletion dayProperty transfer tax, GST where it applies, legal fees, adjustments

Deposit timing is set by your own contract and varies between sellers. The trust requirement is not optional: it is section 18 of the Real Estate Development Marketing Act.

What the province actually protects you from

It is worth being precise about this, because pre-sale buying gets described either as completely safe or as a gamble, and it is neither.

You are protected against a seller who hides a material fact, because section 22 gives you a right to damages if the disclosure statement misrepresents one. You are protected against losing your deposit to a seller's own creditors, because the money is in trust. You get a genuine cooling-off period of 7 days. And you get warranty insurance on the finished home, which is coverage that survives even if the company that built it disappears.

You are not protected against the market. Prices can be lower on completion day than they were when you signed, and no rule changes that. You are also not protected against your own financing falling through, which is the single most common way a pre-sale purchase goes wrong. In our view that risk is worth more attention than it usually gets, and it is the reason we tell buyers to talk to a lender before they sign, not after.

Who this way of buying suits, and who it does not

Buying pre-sale is a good fit for a household with a flexible living situation and a stable income. You get first choice of the homes in a building, which on a small multiplex matters more than it does in a tower, because there may only be four or six homes and only one of them has the yard. You also get time. The gap between the first deposit and completion is a period in which you can keep saving.

It suits families who are buying together for the same reason. Two households coordinating one purchase need lead time to sort out how they will hold title, how they will share costs, and which home each family takes. A pre-sale purchase gives them that time by design.

It is a poor fit if you have to move by a particular date, because completion dates move. It is also a poor fit if your income is likely to change, since your lender will assess you again near the end rather than relying on the approval you had at the start. If either of those describes you, look at homes that are finished or nearly finished instead. There is no penalty for buying later in the cycle, and the certainty is worth a great deal.

What to check about the people selling you the home

You can look up more than most buyers realise, and all of it is free.

Home warranty insurance in British Columbia is only available on homes built by a Licensed Residential Builder, and BC Housing maintains the licensing system behind that requirement. Ask for the licence details and the name of the warranty provider, then confirm both rather than taking a brochure at face value. Ask which specific homes the same company has already finished, and go and look at one.

Be careful with what a company says about itself. Awards, memberships and rankings on a company's own website are claims rather than confirmed facts, and the bodies that award them almost always publish their own lists. If a claim matters to your decision, check it at the source. We apply that rule to ourselves as well: everything on these pages is sourced to the body that issues it, and where a figure is set by your own contract rather than by law, we say so instead of quoting a number that sounds authoritative.

Everything in this guide

Each page below answers one question in full. Read them in order or jump to the one you need.

Questions buyers ask

Buying pre-sale means signing a contract and paying a deposit for a home that has not been finished yet. In British Columbia these sales are governed by the Real Estate Development Marketing Act, which requires the seller to give you a disclosure statement covering all material facts before you sign, and gives you 7 days afterwards to cancel for any reason.
You have 7 days. Section 21 of the Real Estate Development Marketing Act lets you cancel a pre-sale purchase within 7 days after the later of two dates: the date the purchase agreement was made, or the date the seller obtained your written statement confirming you had a chance to read the disclosure statement. You do not have to give a reason, and your deposit comes back.
Your deposit is not held by the seller. Section 18 of the Real Estate Development Marketing Act requires deposits to be placed promptly with a brokerage, lawyer, notary public or other prescribed person, who holds the money as trustee in a trust account at a savings institution in British Columbia. Releasing it early normally needs written consent from both sides.
Deposit amounts are set by each contract rather than by law, so there is no single figure we can quote you as fact. What is fixed is the structure: deposits arrive in instalments on dates written into your agreement, and every instalment goes into the same trust account. Ask for the full deposit schedule before you sign, not just the first payment.
Every new home built by a Licensed Residential Builder in British Columbia must carry home warranty insurance. BC Housing describes the minimum coverage as 2 years on materials and labour, 5 years on the building envelope including unintended water penetration, and 10 years on structural defects. The 2 year part has shorter sub-limits for some items, so read the certificate.
Yes. GST applies to a newly built home bought from a builder, unlike a resale home. If you are a first-time buyer, the first-time home buyers' GST/HST rebate can return up to $50,000 of it on a home priced at or below $1 million, with the rebate reduced gradually between $1 million and $1.5 million and gone at $1.5 million, according to the Canada Revenue Agency.
Often not. British Columbia's Newly Built Home Exemption removes property transfer tax entirely on a newly built home with a fair market value up to $1,100,000, with a partial exemption between $1,100,000 and $1,150,000. You must be a Canadian citizen or permanent resident, move in within 92 days, and keep it as your principal residence for the first year.
Late completion is normal on pre-sale purchases and your contract, not the law, sets what happens. Look for the outside completion date, which is the last date by which the home must be ready before you gain a right to cancel and get your deposit back. Our page on delays walks through where to find that date and what it does.
Sometimes, and only if your contract permits it. Selling the contract itself is called an assignment. Since 1 January 2019 every assignment of a residential strata purchase agreement in British Columbia must be reported to the Condo and Strata Assignment Integrity Register, and the seller normally has to consent first. Many contracts either forbid assignment or charge a fee for it.
Buying pre-sale gets you first choice of the units and time to save between the deposit and completion. Waiting for a finished home gets you certainty: you can walk through the actual rooms and you know your mortgage rate. In our view a buyer who needs to move on a fixed date, or whose income might change, is usually better off with a finished home.
Yes. You will need a lawyer or notary to complete the purchase in any case, and a pre-sale contract is worth having reviewed before the 7 day cancellation window closes rather than after. The disclosure statement and the purchase agreement together often run past a hundred pages, and the terms that matter most are rarely in the first ten.
Each person's eligibility is assessed individually, so a co-buyer who qualifies does not carry one who does not. The bigger practical issue with a pre-sale is timing: deposits are due long before completion, and the withdrawal rules are built around a purchase date. Confirm the sequence with your lender and your lawyer before you commit to a deposit schedule.

Also worth reading

Where these numbers come from

Every figure on this page comes from the body that issues it. Rules and rates change, so each entry says when we checked it.

  1. Real Estate Development Marketing Act, SBC 2004, c. 41. BC Laws, Queen's Printer for British Columbia. Accessed 29 August 2026.
  2. Home Warranty Insurance: What Homeowners Need to Know. BC Housing. Accessed 29 August 2026.
  3. What is the first-time home buyers' GST/HST rebate. Canada Revenue Agency. Page updated 30 March 2026, accessed 29 August 2026.
  4. Newly Built Home Exemption. Province of British Columbia. Thresholds effective 1 April 2024, accessed 29 August 2026.
  5. Condo and Strata Assignment Integrity Register (CSAIR). Province of British Columbia. Accessed 29 August 2026.
  6. Property transfer tax rates. Province of British Columbia. Accessed 29 August 2026.

Not sure where your family fits?

Tell us who is buying, roughly what you can spend, and which areas you are looking at. We will send back the homes that actually match, and say plainly when nothing does.