Presale condos in Vancouver have long been marketed as a way to “lock in today’s price for tomorrow’s home.” But while presales can offer flexibility and opportunity, they also carry unique risks — especially when it comes time to complete. Many buyers assume that if they cannot close, the worst case is losing their deposit. The reality is more serious. Developers have legal rights to pursue damages, and in a falling market, those damages can be significant.
What is Completion Risk?
Completion risk refers to the possibility that you will not be able to finalize (or “complete”) the purchase of your presale condo when the building is finished and title transfers. Common reasons buyers fail to complete include:
- Not qualifying for a mortgage under stricter lending rules
- Changes in financial situation (job loss, income reduction, higher debt)
- Market conditions shifting, making the purchase less attractive
- Interest rates rising, leading to higher monthly payments
Why It’s More Than Just Your Deposit
A common misconception is that walking away from a presale means you simply forfeit your deposit. In British Columbia, most presale contracts allow developers to do much more:
- The developer can resell your unit on the open market.
- If they achieve a lower price than your original contract, they can pursue you for the difference.
- They can also claim additional costs, such as legal fees, marketing expenses, and carrying costs until the unit sells.
Example: When Prices Fall
Imagine you signed a presale contract for a condo in Burnaby in 2022 at $850,000, paying a 15 percent deposit of $127,500.
By 2025, market conditions shift, and comparable condos are reselling at $780,000. You cannot qualify for financing and fail to complete.
- The developer resells your unit for $780,000
- The shortfall compared to your contract is $70,000
- The developer may come after you not just for your deposit but also for the $70,000 loss plus costs
This means you could lose your deposit and still owe damages, leaving you financially exposed.
Why Developers Pursue Damages
Developers are businesses with lenders and investors to answer to. If dozens of buyers default in a slowing market, the financial impact is massive. Pursuing damages is a way to recover losses and maintain project stability.
In fact, in past market downturns in Vancouver, there have been legal cases where buyers were held responsible for hundreds of thousands in damages after failing to complete.
How Buyers Can Reduce Completion Risk
- Get pre-approved and stress test early: Do not assume today’s financing will be available at completion.
- Consider future interest rates: Mortgage rates in 2025 may be higher than when you signed.
- Be realistic about your finances: If the deposit feels like a stretch, completing will feel even harder.
- Work with experienced advisors: Realtors, lawyers, and mortgage brokers who specialize in presales can help you navigate risks.
Completion Risk in Today’s Market
In 2025, with Vancouver presale condos often priced above resale equivalents, completion risk feels higher than in past years. Buyers are locking in at ambitious pricing, betting the market will rise. If it does not, they could be left exposed.
The Bottom Line
Presale condos in Vancouver can still be a smart investment, but buyers must understand the risks. Failing to complete is not just about losing your deposit — it can mean being on the hook for large financial damages if the market shifts.
The best protection is to do your homework, know your numbers, and plan for different scenarios before signing.