How Presale Deposit Schedules Work in BC

Presale buying means paying real money, often a substantial deposit , toward a home that doesn't exist yet. That naturally raises the question every presale buyer eventually asks: where does that money actually go, and what happens to it if something goes wrong? BC has specific legal protections built around exactly this question. Here's how they work.

This is general information, not legal advice. Presale purchase agreements vary by developer and project, have a real estate lawyer review your specific contract's deposit, rescission, and default provisions before you sign.

What a typical deposit schedule looks like

There's no single standard deposit structure in BC, but a common pattern for Metro Vancouver presale condos is a total deposit of roughly 15% to 25% of the purchase price, paid across two to four installments rather than all at once. A typical structure might include an initial deposit at signing, a second installment shortly after your rescission period ends, and one or more further installments tied to construction milestones or specific calendar dates.

That said, the exact numbers move with the market and the specific project, hot launches with strong buyer demand sometimes ask for less upfront to move units quickly, while projects targeting investors or non-resident buyers, or launching into a softer market, sometimes require more. Your specific deposit schedule is set out in your purchase agreement, and it's worth reading closely rather than assuming it matches what a friend paid on a different project.

Where your deposit actually goes

This is the part BC law is specific about. Under the Real Estate Development Marketing Act (REDMA), a developer who receives a deposit must promptly place it with a brokerage, lawyer, notary public, or other prescribed trustee, who holds it as trustee in a trust account at a savings institution in BC, kept separate from the developer's own operating funds. Per BCFSA, the trustee holds the deposit for both the purchaser and the developer, not as either party's agent, and generally can't release it except under specific circumstances defined in the Act, for example, to the purchaser during the rescission period, or with both parties' written consent.

A developer isn't automatically shut out of that money during construction, though. If they've obtained an approved deposit protection contract, a form of insurance, and given purchasers proper notice of it, the trustee can release deposit funds to the developer for their own use. That's a detail worth asking about on a specific project, since it changes who's actually holding your money mid-construction.

The 7-day rescission period

BC law gives presale purchasers a mandatory 7-day rescission period after signing the contract (or after receiving the project's disclosure statement, whichever is later) to cancel the agreement entirely and receive a full refund of their deposit, no reason required. It's a genuine cooling-off window, and it's the reason a common deposit structure includes an installment due only after that period has passed.

If a project doesn't complete

This is the scenario every presale buyer worries about, and it's also where REDMA's trust requirements matter most. Because deposits are held separately from a developer's own assets, they're generally not treated as part of the developer's estate if the developer becomes insolvent, they're returned to purchasers rather than absorbed into a bankruptcy proceeding. If a receiver, liquidator, or trustee-in-bankruptcy is appointed over a project, the developer is generally required to file a new disclosure statement, and that in turn can trigger purchasers' rights to rescind their contracts and have their deposits returned.

None of this means every dollar is guaranteed to come back in every possible scenario, the details depend on exactly how your deposit was held, whether a deposit protection contract was in place, and the specific circumstances of the project's failure. It's exactly the kind of detail a real estate lawyer should walk you through before you sign a presale contract, not after something has already gone wrong.

What this comes down to

• Presale deposits in BC commonly total 15% to 25% of the purchase price, paid across a handful of installments rather than upfront.
• REDMA requires deposits to sit in a trust account with a brokerage, lawyer, notary, or other prescribed trustee, separate from the developer's own funds.
• A mandatory 7-day rescission period lets you cancel and get a full refund shortly after signing.
• If a project fails to complete, trust protections generally keep deposits out of a developer's bankruptcy estate and support their return to purchasers, though the specifics depend on your contract.
• Considering a presale purchase? Contact our team to talk through a specific project's deposit terms, or browse current listings to see what's available now.

Plan your next step

Use the home-buying guide to organise your search. Prepare your property questions, check the actual neighbourhood routes, and keep evidence separate from preferences when comparing homes.