Presale Pro Tip Series: Deposit Structures Explained
The Basics: What Is a Presale Deposit?
A presale deposit is your financial commitment to a developer that you intend to complete the purchase once the project is built. It’s not a down payment (that comes at completion). Instead, it's held in trust and forms part of your eventual purchase price.
Most projects require 15%–20% total, split across multiple stages.
When Are Deposits Due?
Typical presale deposit schedule in British Columbia:
- 5% at contract signing
Paid immediately to secure the unit. - 5% after the 7-day rescission period
Once the right to cancel expires, this is added. - 5%–10% later in the build
Often scheduled 6–12 months after signing or when construction hits a certain milestone.
Some luxury or high-demand projects may ask for a larger deposit up front or accelerated timelines.
Where Does the Money Go?
Your deposit isn’t handed directly to the developer. It’s held in a licensed brokerage or lawyer’s trust account, in accordance with BC regulations.
This offers protection: if the project doesn’t proceed or your contract is cancelled under specific legal conditions, your deposit may be refundable - minus any penalties or agreed-upon deductions.
What About the Down Payment?
Buyers often confuse the deposit with the down payment.
Here’s the difference:
- Deposits = Paid in advance, held in trust, part of the purchase price.
- Down Payment = The total amount you contribute at completion, minus your mortgage. It includes your deposits.
Example: If you’re putting 20% down and already paid 15% in deposits, you’ll owe just 5% at closing.
Local Insight: North Shore Presale Deposits
In North Vancouver and West Vancouver, deposit structures are rarely negotiable - especially in early-launch phases where demand is high.
Some developers allow deposit assignments (transferring deposits to a new buyer), but these come with rules, fees, and risks.
Knowing which projects offer extended timelines or tiered payment options can be a game-changer for first-time buyers or investors managing multiple properties.
Pro Tip: Know Your Deposit Leverage
Not all projects require the same timeline or amount upfront. Working with a knowledgeable local agent gives you access to a wider range of presales, including those with more flexible or investor-friendly deposit terms.
Your realtor can also help you evaluate developer credibility, trust arrangements, and resale history so you know your deposit is working for you, not against you.
Thinking of Buying a Presale on the North Shore?
Let’s make sure you’re getting the right unit, in the right project, at the right time — with no surprises. Reach out for expert guidance on North Vancouver and West Vancouver presales, and let’s walk through your options together.
