Presales and assignments in BC: what to check before you sign or assign

Buying a presale: the disclosure statement and 7 days to cancel

Under BC's Real Estate Development Marketing Act, a developer selling five or more strata units must prepare a disclosure statement and give you a copy before you sign. Since April 1, 2025, the developer must also attach a BCFSA summary form to the front of it, highlighting the key terms of the disclosure statement and the purchase agreement.

After signing, you can cancel by written notice to the developer within 7 days, counted from the later of the day you signed and the day you acknowledged receiving the disclosure statement, and your deposit comes back. Deposits are held in trust by a lawyer, notary or real estate brokerage; if the developer has deposit protection insurance, the Act allows deposits to be released to the developer. The disclosure statement tells you which applies.

The 3-business-day Home Buyer Rescission Period for resale homes does not apply here: a presale that comes with a disclosure statement has its own 7 days instead.

What I go through with you in those 7 days: the completion date range, what the developer can still change, the deposit schedule, the assignment clause, and whether your financing will hold up at completion.

Completion: the appraisal, the mortgage and the closing costs

A presale often completes a year or more after you sign, and the mortgage is approved on the facts at that time: your income, the rates, and the lender's appraisal of the finished unit. BCFSA's own consumer guide warns that a lender may appraise the unit below the price you agreed to; the difference then has to come from your own cash.

At completion you also pay property transfer tax: 1% on the first $200,000, 2% up to $2 million, 3% above that, plus a further 2% on residential value over $3 million. A newly built home can be fully exempt below $1.1 million, phasing out by $1.15 million, if you qualify: among other conditions, you must be a Canadian citizen or permanent resident and live in it as your principal residence.

GST applies to a new home. If you are a first-time buyer and signed with the builder on or after March 20, 2025, the federal first-time home buyers' GST rebate can be up to $50,000: in full on a home up to $1 million, phasing out by $1.5 million.

How the mortgage side works — pre-approval, rate holds and how lenders look at a presale — is on my purchase mortgage page. Because I hold both licences, I can plan the deposit schedule and the completion mortgage together from the day you sign.

Assigning your presale: developer consent, fees and the provincial register

BC presale contracts must by default prohibit assignment without the developer's consent. The developer can refuse consent even when you have found a buyer, and a contract may let the developer charge a fee or cap the number of assignments. So the first thing to read is your own contract's assignment clause.

Every assignment signed on or after January 1, 2019 goes into the province's Condo and Strata Assignment Integrity Register (CSAIR), which the developer reports to. It records both parties' identity details, including their social insurance numbers, and the prices, and the data is shared with BCFSA and the Canada Revenue Agency so the right taxes are assessed.

If you buy an assignment, you step into the original buyer's contract: you do not get a new 7-day right to cancel, and the 3-day Home Buyer Rescission Period does not apply either.

Taxes on an assignment: GST, income tax and BC's home flipping tax

GST: since May 7, 2022, every assignment of a newly built home is subject to GST. How the assignment agreement is written affects how much is owed, so have your accountant or lawyer review it before you sign.

Income tax: a profit on a home, or on a right to buy one, held for less than 365 consecutive days is taxed as business income rather than as a capital gain, unless a listed life event applies (sales from January 1, 2023).

BC home flipping tax: since January 1, 2025, the province taxes the profit on a presale contract assigned within 730 days of signing: 20% within 365 days, falling to zero at 730 days. The holding period runs from the day you signed to the day you receive money from the assignee. A return is due within 90 days, and there are exemptions, including when the builder moves completion back by more than 365 days.

Property transfer tax: whoever registers title at completion pays it. If the unit is assigned before the strata plan is deposited, the tax is based on the total the assignee paid, including the assignment premium.

I am not an accountant. On every assignment I bring your accountant in before the price is set, because the after-tax number is the one that matters.

Who can buy right now

The federal ban on non-Canadians buying residential property, which includes condo and strata units, runs to January 1, 2027 in census metropolitan areas such as Greater Vancouver. Canadian citizens and permanent residents are not affected, and some work permit holders and students meet an exception. If you are not a citizen or permanent resident, have a lawyer confirm your status before you pay a deposit.

How I work on a presale or an assignment

Buying: inside the 7 days, I go through the disclosure statement and the summary form with you, line the deposit schedule up with your cash, and plan the mortgage for completion.

Assigning: we start with your contract's assignment clause and the developer's requirements, work out the after-tax result with your accountant, price the contract against what similar finished units sell for, and then find the buyer.

If I act on both the property and the financing, I tell you in writing, before you sign anything, which role I am in and how I am paid in each. More on the REALTOR® service page.

Common questions

Can I cancel a presale contract in BC after signing?

Yes, within 7 days. Under the Real Estate Development Marketing Act you can cancel by written notice to the developer within 7 days after the later of signing and acknowledging receipt of the disclosure statement, and your deposit is returned.

Does the 3-day home buyer rescission period apply to presales or assignments?

No. It does not apply where a disclosure statement gives you the 7-day right under the Real Estate Development Marketing Act, and it does not apply to assignments. Someone who buys an assignment does not get a new 7-day right either.

Can I assign my presale before completion?

Only if your contract allows it and the developer consents. BC presale contracts by default prohibit assignment without the developer's consent, and a developer can refuse, charge a fee or cap the number of assignments. The assignment is also reported to the province's CSAIR register.

Do I pay GST on a presale assignment in BC?

Yes. Since May 7, 2022, all assignments of newly built homes are subject to GST. How the agreement is written affects the amount, so have it reviewed before you sign.

Does BC's home flipping tax apply to presale assignments?

Yes. Since January 1, 2025, profit from assigning a presale contract within 730 days of signing is taxed: 20% within 365 days, falling to zero at 730 days. A return is due within 90 days, and exemptions exist, including a completion delay of more than 365 days.

Who pays property transfer tax on an assignment, and on what amount?

Whoever registers title at completion, usually the assignee. For a unit assigned before the strata plan is deposited, the tax is calculated on the total the assignee paid, including the assignment premium.