FAQ
FAQ
Frequently Asked Questions
What are the benefits of buying a presale in BC?
Presale usually goes up in values upon completion
You get 2-5-10 years warranty which helps you save money on repairs
They are brand new so no need to spend money on renovations
Canadian Citizen Non Resident Buying Property in BC?
Yes!
Canadian citizens are exempt from the 20% BC Foreign Buyers Tax as well as the federal Foreign Buyers Ban. For more detailed information, please check out our post on Canadian Citizen Non Resident Buying Property in BC.
Why would someone want to sell their presale condo through an assignment?
Circumstances can change between the time of purchasing a presale condo and its completion. The original buyer might face financial challenges, have a change in housing needs, or see an opportunity for profit, leading them to sell their contract.
What is the cost of a presale assignment?
You need to pay all required deposits upfront when you sign an assignment contract.
You should also expect to pay a higher price than the original purchase price in the form of lift which is the amount of profit for the original buyers after assigning the contract. The lift can also be negative when the market price for the existing presale development drops.
Are There Any Specific Restrictions on Marketing Presale Condo Assignments in Vancouver and BC?
Presale can only be assigned if all the unites in the development have been sold out.
Marketing restrictions for presale condo assignments in Vancouver often involve limitations on public advertising, use of MLS listings, and adherence to developer-specific guidelines.
What Is Pre-approval?
Canada currently has a Foreign Buyers Ban that expires in 2025. So according this legislation, foreign buyers probably cannot purchase presale condo assignments until 2025.
BC has a 20% Foreign Buyers Tax, so even if a non-Canadian citizen was able to buy here, they would be subject to this unfortunate tax.
If foreigners do hold presale condos, they can assign them, but given the Foreign Buyers Tax has been in effect since 2016 the amount of foreign buyers active in the BC real estate market is negligible.
What is a Presale Condo Assignment Sale in BC?
A presale condo assignment sale is a transaction where the original buyer (assignor) of an unbuild condo transfers their purchase rights to another buyer (assignee) before construction completion.
Essentially, it’s selling the agreement with the developer, allowing a new buyer to assume the original buyer’s contractual position in the yet-to-be-built property.
How much do I need to pay upfront for a presale?
You need to put down 5 to 10 % of the purchasing price as a deposit with subsequent payments of 5% of the purchase price over the next 12 to 18 months. The deposit usually adds to 15-25% of the purchase price.
Your mortgage payments will only start when the development is fully completed.
What happens after the assignment agreement is signed by the Developer?
Once signed, the ownership of the assignors deposits held by the developer will transferred “assigned over” to the assignee. The assignment fee (around 2-3 % of the original purchase price) is typically paid at this stage and in most cases by the assignee. Depending on what we negotiated in the contract, the assignor may get deposits reimbursed and/or receive the profit or “lift” on the assignment sale.
What Legal Documents Are Required for a Presale Condo Assignment in BC?
For a presale condo assignment in BC, necessary legal documents typically include the original presale agreement, an assignment contract of purchase and sale, and consent forms from the developer. It is recommended to the assistance of a qualified Realtor to assist in the purchase and sale of presale condo assignments due to their complexity and potential for risk.
How Does the Assignment Process Impact the Original Buyer’s Deposit in BC?
In a presale condo assignment, the original buyer’s deposit is typically transferred to the assignee, upon developer written permission for an assignment. The specifics of this transfer can vary based on the terms of the accepted offer and the developer’s policies.
How Can Sellers Determine the Right Pricing Strategy for a Condo Assignment Sale?
To establish an effective pricing strategy for a condo assignment sale, sellers should have a qualified presale condo specialist conduct an in-depth market analysis, consider any developer restrictions, and evaluate comparable assignment sales data to make informed decisions.
- 6045057802
English (Canada) 
简体中文