Understanding Presale Deposit Structures in BC: Complete 2026 Guide

The deposit structure is one of the most important—and most confusing—aspects of buying presale. Unlike resale, deposits are spread over time. This guide explains everything about presale deposits in BC. Introduction: Deposits Demystified The deposit structure is one of the most important aspects of buying a presale property—and often the most confusing. Unlike buying resale where you pay the full down payment at closing, presale deposits are spread over time, allowing you to secure a property with less cash upfront. This comprehensive guide explains everything about presale deposits in BC: typical structures, payment schedules, protection mechanisms, and strategies to make deposits work in your favor. What is a Presale Deposit? A presale deposit is the money you pay before completion to secure your purchase. Think of it as a commitment that locks in your unit and price while the building is under construction. Key characteristics: Paid in installments over 12-24 months Held in trust until completion Applied toward your purchase price at closing Protected under BC real estate law Typical Deposit Structures in BC Standard 20% Structure The most common deposit structure requires 20% total, paid in stages: Initial deposit signing : 10% $50,000 on $500,000 purchase Second deposit 30-180 days : 5% $25,000 Third deposit 12-18 months : 5% $25,000 Extended 15% Structure Some developers offer lower deposits to attract first-time buyers: Initial deposit: 5% Second deposit: 5% Third deposit: 5% Aggressive 25% Structure Higher-end projects may require more: Initial deposit: 10% Second deposit: 10% Third deposit: 5% How Deposit Timing Works Contract Signing Your first deposit is due when you sign the contract of purchase and sale. This is typically the largest single payment: Usually 5-10% of purchase price Often delivered as a bank draft or wire transfer Held by the developer's lawyer in trust Subsequent Deposits Additional deposits are triggered by: Calendar milestones: "Due 180 days from contract date" Construction milestones: "Due when building reaches 4th floor" Combination: "Whichever comes first" Balance on Completion Your remaining balance typically 80-85% is due on the completion date when you take possession. This is financed through your mortgage. Where Are Deposits Held? BC law requires presale deposits be held in trust, not by the developer directly: Trust accounts: Managed by the developer's lawyer or a licensed brokerage Interest: Deposits earn…

This article is part of the PresaleProperties.com BC real estate guide library. It is intended for buyers comparing presale condos, townhomes, assignments, deposits, completion timelines, neighbourhoods and developer incentives across Metro Vancouver and the Fraser Valley.

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