How presale deposits work in BC
When you buy a presale home in British Columbia, you pay a deposit on a home that has not been built yet. How that deposit is handled is one of the most important parts of the purchase — and BC's rules give buyers protections that do not exist in every province.
How much is a presale deposit?
Presale deposits in BC are typically 5% to 20% of the purchase price, paid in stages rather than all at once. A common structure looks like this:
- 5% on signing the purchase agreement
- 5% within 90 to 180 days of signing
- 5% at a later milestone, such as six or twelve months after signing
The exact schedule varies by developer and project. Some projects ask for a smaller total deposit; others ask for more. The schedule is set out in your purchase agreement and in the developer's disclosure statement — always confirm the exact amounts and dates in your own documents rather than relying on marketing materials. You can see real published schedules on live project pages: Ledgeview 2 in Surrey asks for only 5% in total, Aavand in Coquitlam is also 5% total, and Hamilton Village Phase 2 West in Richmond runs a promotional 5% deposit — each page lists the project's published structure.
Where your money goes: trust protection
Under BC's Real Estate Development Marketing Act (REDMA), your deposit must be held in trust by the developer's lawyer, a notary public, or a licensed brokerage. The developer generally cannot spend your deposit on construction costs or other business expenses.
This is a key buyer protection. If the project does not proceed, the money held in trust is returned to you. Before you sign, confirm in writing who holds the deposit in trust and under what terms it is released.
The 7-day rescission period
After you receive the developer's disclosure statement, BC law gives you 7 days to rescind (cancel) the purchase and get your full deposit back. Use that window to have a lawyer review the disclosure statement and purchase agreement. Once the rescission period expires, the deposit is generally committed under the terms of the agreement.
What happens if you back out?
If you cancel after the rescission period, the deposit is generally forfeited under the terms of the purchase agreement, unless the agreement or the disclosure statement gives you another right to cancel — for example, if the developer misses a completion deadline specified in the agreement. The exact consequences depend on your contract, which is why independent legal advice matters before the rescission period ends.
What happens if the developer does not finish?
If the developer fails to complete the project as described, the deposit held in trust is returned. The disclosure statement sets out the estimated completion date and what happens if it is delayed. Read those provisions carefully — they define your rights if the timeline slips.
Deposits and assignments
If you sell your presale contract to another buyer before completion (an assignment), the treatment of your deposit follows the assignment agreement and the original purchase agreement. Some developers restrict assignments or charge an assignment fee. Check the assignment terms in your disclosure statement before you sign.
Checklist before you pay a deposit
- Get the full deposit schedule in writing, with amounts and dates.
- Confirm who holds the deposit in trust.
- Confirm the refund conditions and the rescission deadline.
- Have a lawyer review the disclosure statement and purchase agreement within the 7-day rescission period.
- Make sure the deposit terms in the purchase agreement match what the sales centre told you.
Deposits are only the first part of the money picture. At completion you will also face GST and property transfer tax on top of the price — see our guide on presale closing costs in BC for what else to budget, and which rebates can reduce it.
This guide is general information about how presale deposits typically work in British Columbia. It is not legal advice. Deposit terms vary by project — verify the exact terms in your disclosure statement and purchase agreement, and get independent legal advice before committing.