BC Realtor Pre-Sale Condo & Assignment Guide: Deposits, GST, Assignment Sales & Risks (2026)

“The developer says it's $650,000. Do I need more money for GST?”

“Yes — and it's important to clarify upfront. If the contract says '$650,000 plus applicable taxes,' you'll owe 5% GST on top — that's $32,500 more at completion. However, if you're buying as your primary residence and the price is under $450,000 you may qualify for a GST rebate of up to $6,300. At $650,000 that rebate phases out completely — so budget the full $32,500. Always confirm with your lawyer whether your contract is GST-inclusive or exclusive before removing subjects.”

“The developer says it'll complete in 2027 but I've heard they always go over.”

“Delays are common in pre-construction — permit issues, supply chain, labour — and most purchase contracts give developers extension rights as long as they provide notice. That means you could be waiting until 2028 or 2029. The critical risk is that your mortgage pre-approval will expire and you'll need to requalify at rates and conditions that exist when the building is actually done. I'll help you review the extension clause in the contract, and I'd strongly recommend talking to your mortgage broker about what options exist for extended rate holds.”

“I bought a pre-sale in 2022 for $550,000 and someone offered me $750,000 for the assignment. How much tax will I pay?”

“Your $200,000 profit sounds great, but the tax picture is complex. BC's Property Flipping Tax may apply if it's been less than two years since your original purchase — and it can tax up to 100% of profit in the first year. Beyond that, CRA typically taxes assignment profits as business income, not capital gains, so you could be paying your marginal tax rate on the full $200,000. There may also be GST to remit on the profit. You need to speak with a CPA who specializes in real estate tax before agreeing to this assignment — the after-tax number may be very different from $200,000.”

“Should I buy pre-sale to lock in a price and save money, or just buy something that already exists?”

“The 'lock in a price' logic works if the market rises — but it also locks you in if the market falls. With resale you know exactly what you're getting: completed unit, strata docs, no construction risk, no GST. With pre-sale you're taking on timeline risk, financing requalification risk, and the possibility the finished unit differs from the marketing materials. In a stable or rising market pre-sales can offer value. In an uncertain market I'd lean toward resale unless the price differential is substantial and your timeline is flexible. Let's compare the total cost of ownership of each option so you can make an informed decision.”

“I found a great assignment deal — the assignor only wants $50,000 over their purchase price. Is there a catch?”

“There are a few things to check carefully. First, you'll need developer consent — and they'll charge an assignment fee on top. Second, confirm the original contract's completion date and extension rights — you could be waiting 2+ years. Third, you'll need to requalify for the full original purchase price with your lender, who will add the assignment profit to your financing need. And fourth, you still pay GST on the full unit price at completion — same as if you bought new. Make the offer conditional on developer consent and a full legal review of the contract.”

“The developer just cancelled the project. Do I lose my deposit?”

“No — your deposits are protected. Under BC's REDMA, pre-sale deposits must be held in trust and returned in full if the project is cancelled. Contact the developer in writing requesting your deposit refund, and if you don't receive it promptly, contact BCFSA and a real estate lawyer. The refund should include any interest earned on the trust funds, though this depends on your contract. The frustrating part is you've missed market opportunity — but your actual cash is safe.”