Pre-sale Contracts

Developers in British Columbia commonly pre-sell residential units such as strata titled apartments and townhouses. These “pre-sales” include any residential unit that is purchased prior to the completion of construction.Typically developers enter into contracts that provide for units to be built within two years at a fixed price, and require deposits to be paid by the prospective purchasers. The deposits are held in trust by a lawyer, notary public or real estate brokerage, unless deposit protection insurance is obtained, in which case the deposits may be released to the developer.

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