What to Look For in a Presale Contract (Even When You Can’t Change It)
You usually cannot negotiate a presale contract, but you can read it right. The clauses and red flags every BC buyer should check before signing.
Most presale contracts are not negotiable. That surprises buyers, and it leads some to assume there is no point reading the fine print. The opposite is true. You may not be able to change the terms, but you can understand them, and decide whether to sign, while your rescission window is still open. Here is what to look for.
The clauses that matter most
- The completion dates. Find both the estimated completion date and the outside (sunset) date. The gap between them is how much delay you may have to absorb.
- The deposit schedule. Confirm every amount and date, and that deposits are held in trust.
- The developer’s right to make changes. Most contracts let the developer alter finishes, materials, sizes, or layouts within limits. Know how wide those limits are.
- Assignment terms. Whether you can sell before completion, the fee, and any restrictions.
- What happens on default. What you lose if you miss a deposit or cannot complete.
- Termination and sunset rights. Who can cancel, when, and what happens to your deposit and interest.
Red flags worth a closer look
None of these mean you should walk away, but each deserves attention and a question to your lawyer:
- An outside completion date that is years beyond the estimate.
- Broad developer powers to change the unit or the building with little recourse for you.
- Deposit terms that are unusually high or front-loaded.
- Vague or one-sided language around delays and cancellation.
- Anything in the brochure that you cannot find reflected in the contract.
How to actually do it
Read the contract and every addendum during your seven-day rescission window, not after. Have a real estate lawyer review them, and write down anything that is unclear so you can get answers before the window closes. The point is not to renegotiate. The point is to sign with your eyes open, or to walk away at no cost if the terms are not right for you.
This pairs with our guides to the Contract of Purchase and Sale and the 7-day rescission period.
This is part of our Complete Guide to Buying a Presale in BC. If you want a second read of a contract you cannot change, I help Greater Vancouver presale buyers spot what matters, in plain language, at no cost to you. Book a consultation.
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This article is general information, not legal advice. Contract terms vary by developer and project. Confirm the details with a BC real estate lawyer before signing.
