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New Home & Pre-sales
New Construction Across Greater Victoria and the Westshore
Guidance for buyers considering new construction, pre-sale homes, and newly built properties, including contracts, deposits, completion timelines, GST, inspections, and builder expectations.
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.
Both property types require a buyer who understands the specific tax implications, legal framework, and protections that apply — which differ meaningfully from a standard resale purchase in Victoria BC.
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 seven-day right to cancel the pre-sale contract without penalty. The seven-day period begins after the later of the date you enter into the purchase agreement and the date you provide the developer with the required acknowledgement that you had an opportunity to read the Disclosure Statement.
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. For example, 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
36% of GST paid, to a maximum rebate of $6,300, on qualifying homes valued at $350,000 or less
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
New First-Time Home Buyers' (FTHB) GST Rebate
Additional federal GST relief
Homes priced up to $1,000,000: A 100% rebate of the federal GST, worth up to a maximum savings of $50,000 for qualifying first-time buyers.
Homes priced between $1,000,000 and $1,500,000: The rebate scales down gradually on a linear phase-out.
Must be your primary residence — investor purchases do not qualify
Works as a top-up to the existing GST/HST New Housing Rebate where applicable, providing eligible first-time buyers with total federal GST relief of up to 100% of the GST paid, to a maximum of $50,000.
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. A further 2% applies to the residential portion of a property's fair market value over $3,000,000. 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 Program
Up to $835,000 (partial exemption above $835,000 and below $860,000
Qualifying first-time buyer; principal residence and other eligibility requirements apply
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Confirm your eligibility early. PTT exemption rules have thresholds and conditions that may change. Your real estate lawyer confirms and applies the correct exemptions at completion. Raise the question with them well before closing day so there are no surprises.
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.
What the Disclosure Statement means for you
The Disclosure Statement is a legal document registered with the BCFSA — not a marketing brochure. It 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.
When you receive it, a 7 consecutive calendar day rescission period begins. 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 — use every day of it.
If information about the development changes before completion, the developer may be required under REDMA to file an amendment to the Disclosure Statement or, in some circumstances, a new Disclosure Statement. Receiving an amendment does not automatically start a new 7-day rescission period. However, additional rescission rights may arise in certain circumstances, including where a purchaser does not receive an amendment they were legally entitled to receive. Any amendment or significant change should be reviewed promptly with your REALTOR® and lawyer.
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 day rescission period begins. You have the right to cancel your contract and receive your deposit back. 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 changes and Disclosure Statement amendments
If information about the development changes, the developer may be required to file and provide an amendment to the Disclosure Statement. Depending on the nature of the change, REDMA may instead require a new Disclosure Statement. An amendment does not automatically restart the original 7-day rescission period, but purchasers may have additional rights in certain circumstances. Review every amendment carefully and speak with your lawyer promptly if a change affects something important to your purchase.
4
What the Disclosure Statement does NOT guarantee
The Disclosure Statement is based on information available at the time it is filed. It does not necessarily guarantee that every aspect of the development will remain exactly as originally described, that estimated strata fees will remain unchanged, or that the estimated completion date will be met. Changes may occur during construction, and some changes may require the developer to update the Disclosure Statement. This is why it is important to review any amendments or updated disclosure you receive and obtain legal advice if a change could affect your purchase.
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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. It is mandatory — every licensed builder in BC must enrol new homes in this program before they can legally sell them.
The warranty is transferable to subsequent owners during the coverage periods, which means it follows the home rather than just the original purchaser. If you plan to sell within the warranty period, your buyer inherits the remaining coverage.
There are specific claim procedures and timelines that must be followed to activate warranty coverage. Familiarize yourself with the warranty provider and their claims process before you need it — your builder is required to provide full warranty documentation at possession.
Coverage period
What is covered
Notes
2 years
Up to 2 years | Materials and labour coverage has different 12-, 15- and 24-month periods depending on the item and type of property. Major systems such as electrical, plumbing, heating and air conditioning receive 24-month coverage.
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.
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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.
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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. The risks below are real — not reasons to avoid pre-sales, but reasons to go in with your eyes open and the right representation on your side.
Serious risk
Project delays and cancellations
Developers can delay completion significantly — sometimes by years. In rare cases, projects are cancelled. If the development does not proceed, the treatment and return of the purchaser's deposit will depend on REDMA, the trust arrangements and the terms and circumstances of the transaction. Buyers should obtain legal advice if a development is delayed, cancelled or becomes insolvent.
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. Understand what changes may require updated disclosure, review any amendments carefully, and document the representations made to you at the time of 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 may be higher than the developer's original estimate, particularly as actual insurance, utilities, maintenance and operating costs become known.
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.
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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: Since May 7, 2022, all assignment sales of newly constructed or substantially renovated residential housing are taxable for GST/HST purposes.
CRA requires assignment sales to be reported — failure to do so carries penalties
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 GST is $35,000. Always clarify in writing whether the price you are being offered includes or excludes GST, and confirm whether any applicable rebate has been built into the pricing assumptions. Your lawyer or accountant can help confirm the GST treatment that applies to your purchase.
Do I pay Property Transfer Tax on a new home?
Property Transfer Tax may apply, but qualifying buyers may be eligible for a full or partial exemption. BC's Newly Built Home Exemption can provide relief on qualifying newly built principal residences, and eligible first-time buyers may also qualify under the First Time Home Buyers' Program. Eligibility depends on the property value and the buyer's circumstances, so confirm your position before completion with your lawyer or notary.
How does BC's First Time Home Buyers' Property Transfer Tax exemption work?
BC's First Time Home Buyers' Program can reduce or eliminate Property Transfer Tax for qualifying first-time buyers. Eligibility depends on factors including the buyer's residency and ownership history, the property's fair market value and whether the home will be used as the buyer's principal residence. Because thresholds and eligibility rules can change, confirm the current exemption with your lawyer or notary before relying on it in your purchase budget.
What happens if the developer makes changes before completion?
If information about the development changes before completion, the developer may be required under REDMA to file and provide an amendment to the Disclosure Statement or, in some circumstances, a new Disclosure Statement. Receiving an amendment does not automatically give a buyer another 7-day rescission period. However, REDMA provides additional rescission rights in certain circumstances. If you are notified of a significant change, contact your REALTOR® and lawyer promptly before signing or agreeing to anything.
Can I visit the construction site and check on progress?
Active construction sites are controlled workplaces and public access is generally restricted for safety and insurance reasons. Most developers will not allow purchasers to freely access the site during construction. You can request progress updates from the developer, attend any organized purchaser visits and review construction updates, photographs or reports provided during the build.
What if the developer becomes insolvent before my building is finished?
Pre-sale deposits in BC are subject to specific trust and deposit-protection requirements. A developer's insolvency can nevertheless create delays and legal complications, so purchasers should obtain legal advice about their particular contract and deposit. Before purchasing, it is also sensible to research the developer's experience, track record and previously completed projects.
How long does my new home warranty last and who provides it?
BC's mandatory new home warranty is commonly described as 2-5-10 coverage. Different labour and materials protections apply during the first two years, building-envelope defects are covered for five years, and qualifying structural defects are covered for ten years. Coverage is provided through an authorized home warranty insurance provider, and the specific policy should be reviewed for coverage, exclusions and claim deadlines.
Should I get a home inspection on a brand-new home?
An independent home inspection can still be valuable on a brand-new home. New home warranty coverage does not mean a newly constructed property will be completely free of deficiencies. A qualified inspector can help identify defects, incomplete work or items requiring attention and provide documentation that may be useful during the deficiency and warranty process.
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.”
— Ralph Miller, Victoria BC
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This page is for general educational purposes only and does not constitute legal, financial, mortgage, or professional advice. Real estate legislation, lending criteria, program details, rates, contract terms, and market conditions referenced here vary by individual circumstance and can change over time. All buyers and sellers should consult their REALTOR®, a licensed mortgage professional or lender, and a qualified BC lawyer or notary regarding their specific situation before making any decisions or entering into any contract of purchase and sale.
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