JL Capital — Real Estate Group

Presales & Assignment

Eight things worth reviewing before you sign a presale.

Presale isn't resale. The questions are different, and the answers don't always live in the disclosure.

A presale purchase is a contract to buy something that doesn't exist yet — pricing, completion timing, financing, and assignment rules are all different from a resale. Most of the regret I see comes from clauses people skimmed at signing because the developer's sales centre felt friendly. Below is the conversation I have before any client signs. None of it is legal advice — that's what your lawyer is for. It's the eight points I'd want a friend to ask me about.

The eight-point review

01Deposit structureMost presales take 20% deposit in 4 installments over 6–18 months. Some take 25%. Some take more, faster. Know the schedule before you commit.
02Estimated completion + extensionsOutside dates can shift 12–24 months. Confirm the developer's track record on completion timing — not just the brochure date.
03Assignment clauseSome contracts allow assignment before completion (a separate sale to another buyer). Some don't. Some allow it but with developer consent + fee. Check yours.
04Disclosure amendmentsDevelopers can amend the disclosure statement post-sale. You typically have 7 days to rescind on material changes — but 'material' is not always obvious.
05GST + foreign-buyer taxPresale GST is on the purchase price. Foreign-buyer tax in Metro Vancouver is 20%. Both apply at closing — confirm what's already in your number.
06Mortgage timingBanks don't typically commit to a mortgage rate this far out. Plan for re-qualification 60–120 days before completion at then-current rates.
07Strata + bylaw expectationsBylaws may not be finalized at presale. Pets, rentals, and short-term rules can shift between sales centre and final strata.
08Developer track recordPast completions, deficiencies on prior projects, financing standing of the developer corporation. Ask. Cross-check.

On working with me on presales

I don't take presale referral fees from developers. I'd rather you trust the review than wonder if I'm steering you. If you bring me a contract you've already signed, I'll still walk through it — no obligation.

Thinking about a specific presale? Bring the disclosure — let's read it together.

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