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New Homes & Pre-Sales Victoria BC — GST, PTT, Warranty & What to Know | Janine Thomson, ABR®
Buying a Home › New Homes & Pre-Sales in Victoria BC
Victoria, BC · Buyer Resource Guide
Buying a new home or pre-sale in Victoria BC.
New construction and pre-sale purchases are an exciting way to own in Greater Victoria — but they come with a layer of complexity that resale purchases do not. Taxes, disclosure statements, warranties, timing, and contract terms all work differently. Here is what every buyer needs to know.
New homes and pre-sales — how they differ from resale
Buying a newly built home or purchasing pre-sale from a developer is fundamentally different from buying a resale property. The contract, the taxes, the protections, the risks, and the timeline all operate differently. Understanding these differences before you commit is essential.
New home vs. pre-sale — what is the difference?
A newly built home is a completed property being sold for the first time. You can inspect it, walk through it, and know exactly what you are buying before you sign. GST applies and a new home warranty is included, but the purchase is otherwise similar to a resale transaction.
A pre-sale is a purchase made before the home is built or completed. You are buying based on floor plans, renderings, and a developer’s Disclosure Statement. Completion could be months or years away. The contract is governed by BC’s Real Estate Development Marketing Act (REDMA) — a separate legal framework with distinct rules around your rights and the developer’s obligations.
New from developer
GST applies
New homes and pre-sales are subject to 5% GST on the purchase price. This is a significant cost that does not apply to resale homes. Rebates may be available — understand exactly what you owe before you budget.
Legal framework
REDMA governs pre-sales
Pre-sale purchases in BC are governed by the Real Estate Development Marketing Act. Developers must provide a registered Disclosure Statement before taking a deposit. You have a 7-business-day rescission period from when you receive it.
Built-in protection
2-5-10 Warranty
All new homes built by a licensed builder in BC must be enrolled in a mandatory new home warranty program covering defects in materials, building envelope, and structural defects for specific time periods.
Federal tax on new homes
GST on new homes in BC — what you will pay and what rebates exist
One of the most significant costs new home buyers face — and one that catches many off guard — is the 5% federal Goods and Services Tax (GST). This applies to all new homes and pre-sales purchased from a developer in BC. It does not apply to resale homes.
Federal tax
Goods and Services Tax (GST)
5%
of purchase price
GST is charged on all new home purchases from a developer. On a $700,000 new condo, the GST alone is $35,000. Always confirm with the developer and your lawyer whether the price you are quoted is inclusive or exclusive of GST before signing.
GST New Housing Rebate
Reduce what you owe
Full rebate on homes priced under $350,000 (36% of GST paid)
Partial rebate on homes between $350,000 and $450,000 (phases out)
No federal rebate on homes priced over $450,000
Must be used as your principal place of residence to qualify
Developer may assign the rebate to themselves if already priced in
BC New Housing Rebate
Additional provincial relief
71.43% rebate on the provincial portion of GST for qualifying homes
Available on homes priced up to $450,000
Must be your primary residence — investor purchases do not qualify
Can be combined with the federal rebate for maximum savings
Your lawyer handles the application at completion
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Always get clarity on GST upfront. When a developer quotes you a purchase price, ask explicitly whether it includes or excludes GST. Discovering that $35,000 in GST was not included in your budget at signing is a very expensive surprise. Your lawyer and accountant can advise on the rebates that apply to your specific situation.
Provincial tax
Property Transfer Tax on new homes — exemptions that matter
Property Transfer Tax (PTT) applies to most real estate transactions in BC — but new homes have specific exemptions that can save buyers a significant amount. Understanding which exemptions apply to your purchase is one of the most valuable conversations to have with your lawyer before you close.
Standard PTT rate
Property Transfer Tax
1–3%
of purchase price
Standard PTT rates in BC: 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000, and 3% on amounts over $2,000,000. On a $750,000 home, standard PTT is $13,000. The exemptions below can eliminate or reduce this significantly for new home buyers.
Exemption
Maximum price
Key conditions
Newly Built Home Exemption
Up to $1,100,000 (partial to $1,150,000)
Must be primary residence; Canadian citizen or permanent resident; move in within 92 days of registration
First-Time Home Buyers Exemption
Up to $500,000 (partial to $525,000)
First-time buyer; Canadian citizen or PR; must occupy as principal residence within 92 days
First Home Buyers Grant (BC)
Homes under $835,000
Up to $8,000 grant for first-time buyers on homes $500,000 or less; phases out to $835,000
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First-time buyers take note: If you are purchasing a newly built home and are a first-time buyer, you may qualify for both the Newly Built Home Exemption and the First-Time Home Buyers Exemption. Your real estate lawyer confirms which exemption(s) apply at the time of completion — make sure they know your situation well in advance.
Your legal right to information
The Disclosure Statement — what it is and why you must read every page
Before a developer can take a deposit on a pre-sale property in BC, they must register a Disclosure Statement with the BC Financial Services Authority (BCFSA). This document is one of the most important pieces of paper in any pre-sale purchase — and one of the most commonly under-read by buyers.
1
What the Disclosure Statement contains
The developer’s Disclosure Statement must include the strata plan details, unit specifications, estimated completion date, parking and storage assignments, strata fees estimate, amendment history, any encumbrances on the land, the developer’s financial obligations, and any risks or conditions affecting the development. It is a legal document — read it in full, and have your lawyer review it too.
2
Your 7-day rescission right
When you receive the Disclosure Statement, a 7-business-day rescission period begins. You have the right to cancel your contract and receive your deposit back (minus 0.25% rescission fee) within this window. This is your protected time to review the document with your lawyer. Do not let a developer pressure you to sign or waive this period early.
3
Material amendments trigger a new 7-day window
If the developer makes a material change to the project — changes to unit size, layout, strata fees, amenities, or estimated completion — they must issue an amended Disclosure Statement. This triggers a new 7-business-day rescission period for you. A new period means a new opportunity to review and, if necessary, exit the contract.
4
What the Disclosure Statement does NOT guarantee
The Disclosure Statement is a snapshot in time. It does not guarantee that the development will be built exactly as described, that strata fees will not increase, or that the completion date will be met. Developers have legal latitude to make changes — which is why understanding what material changes trigger a new rescission right is so important.
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Janine’s approach: I review every pre-sale Disclosure Statement with my clients line by line during the 7-day window. I also connect buyers with a real estate lawyer who specializes in new development purchases. Reading the disclosure properly is not optional — it is the most important thing you do in a pre-sale transaction.
Built-in protection
The BC New Home Warranty — 2-5-10 explained
All new homes built by a licensed residential builder in BC must be enrolled in a mandatory new home warranty program under the Homeowner Protection Act. This is commonly called the 2-5-10 warranty, and it is one of the strongest consumer protections in the BC new home market.
What 2-5-10 covers and for how long
The 2-5-10 warranty is structured in three layers, each covering different types of defects for specific periods from the date the home is occupied or the warranty starts.
Coverage period
What is covered
Notes
2 years
Defects in materials & labour; water penetration through the building envelope; delivery & distribution systems (plumbing, electrical, HVAC)
Starts from possession date. Most common defects discovered in first two years are covered.
5 years
Building envelope defects — the exterior systems that protect against water ingress, including windows, doors, roofing, cladding, and flashing
Building envelope is the most expensive category of new home defect in BC. 5-year coverage is significant.
10 years
Major structural defects — failure of a load-bearing component that substantially impairs the use of the home
Covers the foundation, framing, and structural systems. The longest and most fundamental protection.
🛠️
Important to understand: The warranty covers the original buyer and is transferable to subsequent owners. There are specific claim procedures and timelines that must be followed. Familiarize yourself with the warranty provider and their claims process before you need it. Your builder is required to provide you with all warranty documentation at possession.
⚠️
Unlicensed builders are not covered. The warranty only applies to homes built by a BC Licensed Residential Builder. Always confirm your builder is properly licensed and the home is enrolled in a warranty program before signing any purchase contract.
What every buyer must know
Pre-sale risks — what to watch for and understand before you sign
Pre-sales offer real advantages — locking in today’s price in a rising market, selecting your unit, and personalizing finishes. But they also carry risks that resale purchases do not. Here is an honest look at the most significant ones.
You are buying what does not yet exist
In a pre-sale, you are making a legally binding financial commitment based on a promise — floor plans, renderings, a brochure, and a developer’s sales pitch. The building you will move into may look different from the model suite. The finishes may change. Strata fees will likely be higher than estimated. Completion may be later than expected.
Understanding what you are signing and what protections you have is the difference between a smart purchase and an expensive surprise.
Serious risk
Project delays and cancellations
Developers can delay completion significantly — sometimes by years. In rare cases, projects are cancelled. If cancelled after you have paid a deposit, your deposit should be returned with interest, but you may have lost the opportunity cost of tying up those funds.
Serious risk
Financing at completion
You are not getting a mortgage today — you are getting one when the building completes, which could be 2-4 years from now. Interest rates, lending rules, and your personal financial situation may all change. Your lender will re-qualify you at the time of completion based on conditions that exist then, not now.
Watch carefully
Unit specifications can change
Developers retain the right to make material changes — and many do. Finishes, layouts, appliance packages, common amenities, and unit configurations can all be changed before completion. Know what triggers your rescission right and document the representations made to you at purchase.
Watch carefully
Strata fees are estimates only
The strata fees quoted in the Disclosure Statement are an estimate. Actual strata fees once the building is operating are almost always higher than the developer’s original estimate — sometimes significantly. Budget accordingly.
Watch carefully
Developer’s sales staff work for the developer
The presentation centre, the sales representatives, and the marketing materials are all produced by and for the developer. They are not your advisors. Everything you are told verbally should be verified in the written Disclosure Statement — if it is not in writing, it is not binding.
Watch carefully
Deposit at risk if you default
Pre-sale deposits are typically 5-20% of the purchase price and are held in trust. If you are unable to complete the purchase — including because your financing falls through at completion — you risk losing your deposit and potentially facing further legal action from the developer.
⚠️
Never buy a pre-sale without your own Realtor. The developer’s sales team is not legally obligated to protect your interests — they are selling a product. An Accredited Buyer’s Representative (ABR®) represents you exclusively, reviews the Disclosure Statement with you, and ensures your contract protects you as fully as possible.
Before completion
Pre-sale assignments — selling your contract before the building completes
An assignment is the sale of a pre-sale purchase contract before the building completes. The original buyer (the assignor) transfers their position in the contract to a new buyer (the assignee). Assignments became significantly more complex in BC following major federal and provincial tax changes in recent years.
What assignments involve
The mechanics
Developer must typically consent to an assignment — check your contract
Assignment fees payable to the developer are common (often 1-2% of the original price)
The assignee takes over the original contract terms and deposit obligations
GST applies on the assignment profit in most cases
Assignment must be reported to CRA — federal rules have tightened significantly
BC applies PTT on assignments in many circumstances
Tax implications (2024 and beyond)
Know before you assign
Federal rule: GST now applies to the full assignment price if the original purchase was intended for re-sale (effective May 2022)
CRA requires assignment sales to be reported — failure to do so carries penalties
Profit on an assignment is generally taxable as business income or capital gain depending on intent
BC PTT applies to assignments in many circumstances — confirm with your lawyer
Some pre-sale contracts prohibit assignment entirely — read your contract carefully
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Assignment purchases require specialist advice. If you are buying an assignment — rather than purchasing directly from a developer — the legal and tax landscape is complex. Ensure your lawyer has specific experience with pre-sale assignments in BC.
The final stages
Completion timing — what happens when the building is ready
Completion of a pre-sale home is one of the most logistically complex events in any buyer’s journey. Unlike a resale purchase where you have a fixed completion date set months in advance, pre-sale completion can move with limited notice. Understanding how this works — and preparing for it — prevents last-minute problems.
1
Estimated completion dates are not guaranteed
The completion date in your Disclosure Statement is an estimate. Construction projects in BC face labour, material, permit, and weather delays. Pre-sale contracts typically give the developer significant latitude to extend the completion date — sometimes by a year or more. Plan for this: do not give notice on your rental, book movers, or make other irreversible arrangements until you have a firm completion date in writing from the developer.
2
The notice to complete
Most pre-sale contracts give buyers 30 to 120 days’ notice before the completion date is triggered. When you receive this notice, your mortgage financing deadline is activated. You must have your mortgage in place and your lawyer ready to complete within the notice period.
3
Re-qualifying for your mortgage at completion
Your mortgage pre-approval is based on conditions that exist today. At the time of completion — which could be years from now — your lender will re-qualify you based on current rates, current stress test rules, and your current financial situation. Rate increases, job changes, new debts, or changes to lending rules between signing and completion can all affect your ability to complete.
4
Completion vs. possession
In BC pre-sale purchases, completion (when funds transfer and title registers) and possession (when you get the keys and can move in) typically happen on the same day or within a few days of each other. Some developers require an occupancy period before actual strata title is registered — confirm the exact timeline with your lawyer.
5
Final adjustments at completion
At completion, your lawyer will prepare a Statement of Adjustments reconciling all costs — GST, PTT (or exemptions), strata fee adjustments, property tax adjustments, and any balance owing. Review this document carefully before you sign.
Before you accept the keys
The deficiency walk-through — how to protect yourself at possession
Before you accept possession of a new home, you are entitled to a walk-through with the builder to identify any deficiencies — items that are incomplete, damaged, or do not meet the agreed specifications. This walk-through is one of the most important steps in a new home purchase and it should never be rushed.
What to inspect
Deficiency walk-through checklist
All surfaces — walls, ceilings, floors — for damage, paint defects, and finish quality
All doors, windows, and hardware — open, close, and lock properly
Kitchen and bathroom fixtures, cabinets, and appliances — operation and finish
All plumbing — run every tap, flush every toilet, check for leaks
All electrical — test every outlet, switch, and light fixture
HVAC system — heating, cooling, and ventilation all operating
Flooring — check for gaps, squeaks, and damage throughout
Tile — inspect for chips, cracks, and grout quality
Exterior — siding, caulking, eaves, and drainage
Balcony or patio — rails, drainage, and surface condition
What to do
How to handle deficiencies properly
Document every deficiency in writing — take photos with timestamps
Use the builder’s official deficiency form if provided, or your own written list
Do not accept verbal assurances — get all commitments to fix in writing
Understand what is a warranty item vs. what should be fixed before possession
Minor cosmetic deficiencies may be addressed after possession
Major structural or functional issues should be resolved before you take the keys
Your lawyer should review any documentation before you sign off
Consider hiring a professional home inspector for your deficiency walk-through
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Take your time at the walk-through. Builders are motivated to hand over the unit and close the sale. You are entitled to take the time you need to inspect properly. Bring a checklist, bring a phone or camera, and do not feel pressured to sign off until you are satisfied that everything is documented.
Common questions
New homes & pre-sales FAQ — Victoria BC buyers
Honest answers to the questions new home and pre-sale buyers ask most in Greater Victoria.
Is GST included in the price the developer quotes me? ⌄
Sometimes, but not always — and you must ask explicitly. Some developers advertise prices inclusive of GST, while others quote prices exclusive of GST. On a $700,000 condo, the difference is $35,000. Always clarify in writing whether the price you are being offered includes or excludes GST, and confirm whether any rebate has been built into the pricing assumptions. Your lawyer will confirm the final GST owing at completion.
Do I pay Property Transfer Tax on a new home? ⌄
You may qualify for a full or partial exemption. The Newly Built Home Exemption eliminates PTT on newly built homes priced up to $1,100,000 where you will use the home as your primary residence. First-time buyers have additional exemption options on qualifying purchases. Your lawyer handles this at completion, but you should understand your eligibility before you sign a purchase contract.
What is the First Home Buyers Grant in BC? ⌄
The BC First Home Buyers Grant provides up to $8,000 to first-time buyers purchasing a home priced at $500,000 or less, with a reduced grant for homes priced between $500,000 and $835,000. To qualify you must be a Canadian citizen or permanent resident, have lived in BC for at least a year, never have owned a home that was your principal residence, and intend to live in the home as your primary residence. Confirm eligibility with your lawyer and accountant, as rules and thresholds may change.
What happens if the developer makes changes before completion? ⌄
If the change is material — meaning it significantly affects the value, use, or enjoyment of your unit — the developer must issue an amended Disclosure Statement. This triggers a new 7-business-day rescission period, giving you the right to cancel and receive your deposit back (minus the 0.25% rescission fee). If the developer notifies you of any changes, contact your Realtor and lawyer immediately before you respond or sign anything.
Can I visit the construction site and check on progress? ⌄
Active construction sites are workplaces governed by WorkSafeBC regulations — public access is restricted for safety and insurance reasons. Most developers will not allow buyers to access the site during construction. You can request updates from the developer’s sales team, attend any organized buyer updates the developer holds, and monitor any progress reports or photos they provide.
What if the developer goes bankrupt before my building is finished? ⌄
Pre-sale deposits in BC are required to be held in trust and cannot be released to the developer until certain conditions are met. If a developer becomes insolvent, your deposit should be protected in trust, but recovering it may still require legal action and time. Before purchasing from a developer, research their track record, financial backing, and whether they have successfully completed comparable projects. Your Realtor can help you evaluate the developer before you commit.
How long does my new home warranty last and who provides it? ⌄
The mandatory BC new home warranty provides 2 years on materials, labour, and delivery systems; 5 years on the building envelope; and 10 years on major structural defects. The warranty is provided by a third-party warranty provider approved by BC Housing — not the builder directly. Your builder is required to enrol the home in a warranty program and provide you with full warranty documentation at possession. The warranty is transferable to subsequent owners during the coverage periods.
Should I get a home inspection on a brand-new home? ⌄
Yes — strongly recommended. The new home warranty provides important protections, but it does not remove the value of an independent professional inspection. A licensed home inspector attending your deficiency walk-through will identify issues that an untrained eye misses, document deficiencies formally, and give you a record that supports any future warranty claims.
What clients say
Buyers who trusted Janine through every stage
★★★★★
“Janine works for you to achieve the best outcome. She is passionate about what she does. Above and beyond is what I experienced. If you want someone to truly represent you and understand your needs, she is simply the best in the area.”
— Troy Wilson, Victoria BC
★★★★★
“Janine was easy to work with and understood what our requirements were. She was highly dedicated and I would have no hesitation in recommending her. Her professionalism and interpersonal skills are second to none.”
New homes and pre-sales are exciting — but they require a buyer’s representative who understands the contracts, the taxes, the warranties, and the risks. Let’s talk through your situation before you sign anything.
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