Introduction to How to Buy A Presale Condo in Vancouver

In this series of videos, I will explain in detail the process of buying a Residential Presale Condominium in Vancouver, British Columbia, Canada.

(Not sure what a Presale is? Check out this great explanation of Presale Condos Here!)

Who I am:

My name is Mike Stewart, and I am a top producing and award winning Realtor in Vancouver and I specialize in Pre Sale Condos. Since 2005, I have helped my clients purchase Presale condos all over Vancouver and Pre-Sales make up a good portion of my Real Estate business.

Questions are Encouraged!

Should you have any questions at all on the process of buying a Presale Condo, feel free to call me directly at 604-763-3136 or email me by clicking HERE

What We Will Discuss in the Following Videos!

A Presale Condo or Off Plan Property as they referred are to in the UK and elsewhere, is a contract between a Buyer and a Property Developer, were the Developer agrees to supply an as yet un-built condo before a certain date in the future in exchange for a deposit and the rest of the amount of money the Buyer agrees to pay when the condo is completed.

The Buyer gives a deposit when they sign the contract to buy the presale. In Vancouver the deposit for presale (off plan) condos is typically total 20% to 25% of the purchase price.

This deposit is usually paid in installments before the property is completed by the Developer, starting with an initial 5-10% deposit when the contract is signed and then the rest of the deposits totaling 20-25% over a period of between 9 months to several years (Depends on how long it takes to build the condo).

Once the property is built by the Developer, the Buyer is required to Complete on the property and pay the rest of the purchase price (Not including deposits already paid). Once the Buyer Completes on the Condo, they can move in or rent it out and it is no longer a Presale.

Check out Episode 1 of How to Buy a Presale Condo 1 | Advantages for Investors

Looking for the Most Recent Up to Date List of Presales Condos in Vancouver?

Check out these Great Presales in Vancouver!

Looking for Advice on Selling in Vancouver? Check out these great videos on How to Sell a Condo in Vancouver!

I STRONGLY ENCOURAGE Questions & Comments Below!

Open the Georgia Strait or any other local paper and you’ll notice advertisements for apartments and condos. Most of these places don’t yet exist. Why? Because they are pre-sales!

What is a Pre-Sale?

A pre-sale is when a Developer sells a Buyer a property before that property is built or completed. The Buyer purchasing the pre-sales is buying the right to a completed property that will be built in future. In the UK and elsewhere Pre-Sales are referred to as Off Plan Investments.

Why do people buy Pre-Sales?

Pre-sales are popular with investors and other Buyers because it allows these Buyers to have the benefit of increasing prices without having to pay a mortgage, property taxes, maintenance fees, or deal with troublesome tenants. Pre-Sales also allow owner occupiers the ability to customize the property they buy.

Are Pre-Sales Safe?

In the Province of British Columbia, Pre-Sales are regulated by the Real Estate Development Marketing Act and are generally safe when you are buying from a reputable Developer. If you have concerns or questions about the Developer, contact the Home Owner Protection Office.

3 Important Facts about Pre-Sales

1. The Purchaser of a Pre-Sale has the right to walk away from the contract to purchase the property for any reason for 7 days after there is an accepted offer. This a BC Provincial Law and its called the “7 Day Rescission Period” If you can’t get financing, if your mother says its a bad idea, if you have a nightmare about Real Estate – YOU CAN KILL THE DEAL FOR ANY REASON!
2. All deposits paid by the Buyer of a Pre-Sale are held in a lawyers trust account. This money stays in the account until the building is either built or the Developer fails to meet the time deadline to have the building built. The Developer cannot use this money and does not have access to this money until the building is complete. If the Developer goes under, the money in the trust account is not part of the bankruptcy and has to be returned to the Buyer.
3. The Disclosure Statement will have all of the important info about the property you are buying such as the size of your suite, what will be included in the suite, and what the building will look like. Make sure you read it!

Check out my list of Vancouver Presale Condos if you’re interested in buying on one of these real estate investments.

If you have any questions on Pre- Sales feel free to contact me at any time.

I would love to hear your thoughts, and questions down below in the form of a written comment.

Thanks!