Presale Deposits in BC: Structure, Schedule and Protection

A presale deposit is not a down payment. It is a staged, at-risk commitment of capital made years before you get keys — and the schedule matters as much as the percentage. Here is how BC presale deposits actually work.

The short version

• Total deposit on a Metro Vancouver presale is typically 10–20% of the purchase price.
• It is paid in instalments, usually across 6–18 months, not in one lump sum.
• Your money sits in a lawyer’s or notary’s trust account, not the developer’s operating account.
• The deposit is fully refundable during the seven-day rescission period, and generally not refundable after it, except as your contract or the Real Estate Development Marketing Act provides.
• The schedule is more negotiable than most buyers realise, particularly on slower-selling projects and in later release phases.

What a typical deposit schedule looks like

On a $800,000 presale with a 20% total deposit, a common structure runs:

• $40,000 (5%) on signing, held in trust, refundable through your seventh day
• $40,000 (5%) at roughly 90–180 days
• $40,000 (5%) tied to a construction milestone, often excavation or a specified storey
• $40,000 (5%) twelve to eighteen months in, or at a second milestone
• Balance at completion, financed by your mortgage

Two things follow from this that catch buyers out. First, your capital is committed progressively, so you need the second and third instalments liquid on dates that may be years before you move in. Second, the instalments are usually tied to dates or milestones the developer controls, and construction milestones can arrive earlier than expected as easily as later.

Where your deposit actually sits

Under the Real Estate Development Marketing Act, deposits on presale homes in BC must be held in trust by a lawyer, notary or licensed brokerage — not by the developer directly. The trustee cannot release the funds to the developer except as the Act allows.

This is a genuine protection and it is the reason presale deposits in BC are safer than buyers often fear. It is not, however, a guarantee that you get the home. It protects the money, not the outcome.

What happens to your deposit if things go wrong

You change your mind within seven days

You get all of it back. No reason required, no penalty. This is the rescission right every BC presale carries and it is the single most valuable protection in the process.

You change your mind after seven days

Generally you do not get it back. At that point you are in a binding contract, and walking away typically means forfeiting deposits paid and potentially further liability. This is why the seven days matter so much.

The developer cancels the project

Your deposit is returned from trust. Whether you receive interest depends on your contract. What you do not get is compensation for the years of price movement you sat out — which, in a rising market, is the real cost of a cancelled project.

Completion is delayed past the outside date

Most contracts contain a sunset or outside date. If the developer cannot complete by then, the contract may be terminated and deposits returned. Some contracts allow the developer to extend that date unilaterally. Read that clause specifically.

What is actually negotiable

More than most buyers try for. In practice:

• The number of instalments — splitting a 10% payment into two 5% payments is a common concession.
• The timing — pushing an instalment out 60 or 90 days costs the developer little and can matter a lot to you.
• The total percentage — harder, but achievable on projects that are selling slowly or in a final release.
• What counts as the triggering milestone — a date is more predictable than a construction event.

Leverage comes from timing and information. At a VIP launch of an oversubscribed project you have very little. On a final release of a project that has been selling for two years, you have considerably more. Knowing which situation you are in is most of the job.

Deposits for non-resident buyers

Non-resident purchasers are frequently asked for higher deposits, sometimes 20–35%. Separately, Canada’s ban on residential purchases by non-Canadians runs through January 1, 2027, with exceptions. If residency or citizenship is a factor for you, get advice before you sign anything rather than after.

Common mistakes

• Budgeting the percentage but not the calendar. Knowing you need 20% is not the same as having the third instalment ready in month fourteen.
• Assuming the deposit is your down payment. It counts toward your purchase, but your mortgage is arranged against the completion-date value, years later, under whatever lending rules exist then.
• Not reading the assignment clause first. If you might need to exit, that clause — not the deposit schedule — is what determines whether you can.
• Treating the seven days as a formality. It is the only free exit you get. Use it to have the disclosure statement read properly.

Frequently Asked Questions

How much deposit do I need for a BC presale?

Typically 10–20% of the purchase price in total, paid in instalments across roughly 6–18 months rather than as a single payment. Non-resident purchasers are often asked for more.

Is my presale deposit safe?

Yes, in the sense that matters most. Under the Real Estate Development Marketing Act deposits must be held in trust by a lawyer, notary or licensed brokerage rather than by the developer, and released only as the Act permits. That protects the money; it does not guarantee you get the home.

Can I get my deposit back if I change my mind?

In full within the seven-day rescission period, for any reason. After that, generally not — you are in a binding contract and withdrawing usually means forfeiting deposits paid and possibly more.

What happens to my deposit if the developer cancels the project?

It is returned from the trust account. Whether you also receive interest depends on your contract. What you are not compensated for is the market movement you sat out.

Is the deposit schedule negotiable?

More often than buyers try for. Splitting an instalment or deferring a date is a commercial concession developers can make without redrafting anything. Your leverage depends on how well the project is selling.

Is the deposit the same as my down payment?

No. It counts toward the purchase, but your mortgage is arranged against the completion-date value years later, under whatever lending rules apply then.

Where to go next

• The Complete Guide to Buying a Presale in BC — the full process end to end.
• BC Presale Tax Calculator — model GST, property transfer tax and rebates against your price point.
• Presale FAQ — short answers to the questions that come up most.
• Every active Greater Vancouver presale — or go straight to Burnaby, Surrey, Coquitlam, Langley or Vancouver.

This guide provides general information about buying presale property in British Columbia, not legal, tax or financial advice. Deposit structures and legislation change — confirm the details of your purchase with a licensed lawyer and your real estate advisor.