What to Review Before Buying a Pre-Sale Condo, Townhome, or New Home
New construction in Victoria BC — especially in Langford, Colwood, and downtown — continues to attract buyers looking for modern layouts, energy efficiency, and lower maintenance.
But pre-sale and newly built homes involve different risks than resale properties.
Deposit structure. GST. Assignment clauses. Disclosure amendments. Completion timelines.
This checklist outlines what buyers in Greater Victoria should review before committing to a new construction condo, townhome, or detached home.
Phase 1: Before You Write an Offer
▢ Review the Deposit Structure Carefully
In Victoria-area pre-sales, deposits are often structured as:
5% at contract signing
Additional 5%–10% at defined milestones
Confirm:
Total deposit required
Deposit schedule
Where funds are held (lawyer trust)
Refund conditions if project delays or fails
A “low deposit” headline does not equal low risk.
▢ Read the Disclosure Statement (REDMA Requirement)
Under BC’s Real Estate Development Marketing Act (REDMA), developers must provide a Disclosure Statement.
In Greater Victoria projects, this document typically outlines:
Estimated completion window (often 12–36 months)
Developer rights to modify floorplans
Parking and storage allocation
Strata budget assumptions
Rental and pet restrictions
Phasing (important in Langford developments)
This document defines your contractual exposure.
Most buyers skim it. That’s a mistake.
▢ Confirm GST Treatment
In BC, new construction is generally subject to GST.
Clarify:
Is the price plus GST or GST included?
Do you qualify for the GST New Housing Rebate?
Are you purchasing as an investor or owner-occupier?
Incorrect assumptions here change your closing numbers significantly.
▢ Understand Assignment Rights
Assignment clauses are critical in pre-sale purchases.
Determine:
Is assignment permitted?
Is developer consent required?
Is there a fee (common in Victoria projects)?
Are marketing restrictions imposed?
In slower markets, assignment flexibility protects downside risk.
In stronger markets, it creates upside opportunity.
Phase 2: During Construction
▢ Monitor Disclosure Amendments
Developers may issue amendments that:
Adjust completion timelines
Modify square footage
Change amenities or common areas
Certain amendments trigger rescission rights — but only within a defined window (often 7 days).
Missing that window eliminates the option to exit.
▢ Maintain Mortgage Readiness
Completion in Victoria-area pre-sales commonly ranges from 18–36 months.
Pre-approvals expire.
To protect your position:
Reconfirm qualification annually
Avoid major debt changes
Monitor rate environment
Keep employment stable
Financing is assessed at completion — not at contract signing.
▢ Review the Strata Budget Closely
Early strata budgets are projections.
Evaluate:
Contingency Reserve Fund contributions
Insurance assumptions (critical in BC)
Elevator and amenity maintenance
Amenity-heavy buildings in downtown Victoria
Underfunded budgets often result in early fee increases.
Phase 3: Prior to Completion
▢ Conduct a Thorough Deficiency Walkthrough
Bring:
Blue painter’s tape
A detailed checklist
Photos
Inspect:
Flooring alignment
Cabinet installation
Paint finishing
Appliance performance
Plumbing fixtures
Window seals
Document everything in writing.
Minor deficiencies compound when unaddressed.
▢ Understand 2-5-10 Warranty Coverage
In British Columbia, new homes are protected under:
2 years — labour and materials
5 years — building envelope
10 years — structural
Know reporting deadlines.
Warranty rights are time-sensitive.
▢ Budget for Completion Costs
Beyond purchase price, account for:
GST (if applicable)
Property Transfer Tax (unless exempt)
Legal fees
Adjustments
Strata move-in fees
Utility activation
New construction does not eliminate closing costs.
Phase 4: After Possession
▢ Submit Warranty Items Early
Track:
Drywall movement
Door alignment
Appliance issues
Moisture or envelope concerns
Warranty timelines are strict.
Calendar reminders.
▢ Attend the First AGM
Developer-controlled strata councils eventually transition to owner control.
Pay attention to:
Insurance deductibles
Reserve fund strategy
Phased construction impact
Parking and LCP clarification
Early governance decisions shape long-term building stability.
Common Mistakes Victoria Buyers Make
Prioritizing incentives over contract language
Assuming GST is included
Ignoring assignment restrictions
Failing to review disclosure amendments
Letting financing lapse
Underestimating early strata fee adjustments
New construction reduces maintenance risk.
It does not remove contractual risk.
Final Consideration
Pre-sale and newly built homes in Victoria BC require disciplined review.
Deposit structure. Disclosure language. Assignment flexibility. Completion exposure.
These elements determine whether a purchase is strategic.
If you’re considering new construction in Langford, Colwood, Downtown Victoria, or surrounding areas and want a structured contract review before committing, reach out.
Positioning begins before the first deposit is paid.