Presale condo deposits are typically anywhere from 10% to 30% total with most around 25% paid over 12 to 24 months. The amount of the deposit is usually dictated by either the developers financing, buyers residency (non-residents often have to pay higher deposits), or how soon the project is completing, or how stiff the local presale competition is.
The first deposit is typically either $5000 or $10,000 with an accepted offer and then 5% or 10% within 7 days of the accepted offer (minus the $5000 or $10,000 paid with the accepted offer). Some developers will require the full 5% or 10% with the accepted offer.
The subsequent presale deposits are paid in installments of around 5% to 10% until completion. Sometimes developers will ask for a 1-2% deposit right before completion of the building.
Accepted offer on a presale condo
Once there is an accepted offer, the 7 rescission period begins and the buyer should begin their due diligence. At the end of this 7 day rescission period, if the presale condo buyer does not rescind, the purchase contract will legally binding on the buyer. At this point the buyer just has to pay their deposits when they are supposed to and wait for the presale condo to be completed. During this time the buyer may receive correspondence from the developer about amendments to the disclosure statement and construction updates.
Other Documents When Buying a Presale Condo
Presale condo buyers in British Columbia will also have fill out the following documents when writing an offer on a presale condo:
FINTRAC – This document is to identify the presale buyer and/or the company they are using to purchase a presale condo in BC. This is a required document and if it is not filled out, could result in criminal penalties.
Disclosure of Interest in Trade (DORTS) – This document lays out the agency relationship between the Realtor and the presale condo buyer in detail. It is optional for the buyer to sign it, but the Realtor is obligates to present it to the buyer and explain it.
Privacy and Consent Form – This document explains the Realtors obligations and requirements to maintain the privacy of the presale condo buyer and their personal information.