When buyers tell me they want a “new home,” they may be describing three very different types of purchases.
A pre-sale, a completed new build and a resale can differ in what you can inspect, when you need financing, which taxes may apply and how much certainty you have about the finished home. None is automatically the better choice. The right one depends on your timeline, finances and comfort with risk.
Here is what each term actually means in B.C.
A Pre-Sale: You’re Buying a Future Home
A pre-sale is purchased before construction is complete, sometimes before it has even started. Instead of walking through the finished property, you are buying based on floor plans, proposed finishes, a disclosure statement and a pre-sale purchase contract.The disclosure statement contains important information about the development, including estimated construction dates, proposed strata fees, parking, strata bylaws and the developer’s intentions. Buyers should read the entire document, along with any amendments received before completion.
Under B.C.’s Real Estate Development Marketing Act, qualifying pre-sale purchasers generally have seven days to cancel after the later of signing the contract or acknowledging they had an opportunity to read the disclosure statement. This is different from B.C.’s three-business-day Home Buyer Rescission Period, which does not apply to purchases governed by the pre-sale protections under that Act.
What buyers should consider
Pre-sales provide time to save before completion and may offer choices in floor plans or finishes. However, the completion date may be years away, and the finished home may not look exactly as imagined.Pre-sale contracts commonly allow for changes to materials, finishes, layouts or completion timelines. Buyers also need to understand:
- The deposit schedule
- What happens if construction is delayed
- Whether the contract may be assigned and what fees apply
- How changes to the development will be disclosed
- What happens if the final size or layout differs
- Whether they can qualify for financing at completion
Deposits received by a developer must generally be held in trust by a brokerage, lawyer or notary in B.C., although permitted deposit-insurance arrangements can allow funds to be released to the developer.
A New Build: The Home Is Brand New
A new build is a newly constructed home that is complete or close enough to completion that the buyer may be able to view the actual property.A pre-sale eventually becomes a new build, but not every new build is purchased during the pre-sale stage. A buyer might purchase directly from the developer once construction is complete, or purchase a recently finished home that has never been occupied.
Compared with an early pre-sale, a completed new build provides greater certainty. Buyers can assess the actual layout, natural light, views, room sizes and quality of the finishes rather than relying only on plans and renderings.
Understanding the 2-5-10 warranty
In B.C., new homes built by licensed residential builders must generally have third-party 2-5-10 home warranty insurance, unless a permitted exemption applies.The minimum coverage includes:
- Up to two years for certain defects in materials, labour and major systems
- Five years for defects in the building envelope
- Ten years for structural defects
Owner-built homes are treated differently and may not carry third-party warranty insurance. This should be confirmed through BC Housing before purchasing.
A deficiency walkthrough is also not the same as a full independent home inspection. When possible, buyers should consider having a qualified inspector assess a completed new home, particularly a detached property.
A Resale: You Can Evaluate the Home as It Exists
A resale home has previously been owned or occupied. It may be a nearly new condo, a renovated character home or anything in between.The advantage is certainty. You can walk through the actual property, see its condition, understand the surrounding neighbourhood and compare it with recent sales. Buyers can also include conditions for financing, inspection, insurance and document review in their offer.
For a strata property, due diligence should include more than viewing the unit. Buyers should review available strata minutes, financial statements, bylaws, insurance information, the Form B and depreciation report. These documents may reveal planned repairs, special levies, restrictions or other issues that are not visible during a showing.
A Property Disclosure Statement can provide helpful information, but it should not replace an independent inspection or other appropriate professional advice.If a resale home is still within its original 2-5-10 warranty period, the remaining coverage stays with the property rather than the original owner. Buyers should confirm what coverage remains and whether previous claims were filed.
Taxes and Closing Costs Can Differ
New and substantially renovated homes are generally subject to GST, while a typical previously occupied resale home is generally exempt. Buyers should confirm whether GST is included in the advertised price or payable in addition to it.As of 2026, eligible first-time buyers may qualify for a federal GST rebate on a new home: up to a full rebate on qualifying homes valued at $1 million or less, with a reduced rebate between $1 million and $1.5 million. Eligibility requirements apply.
Property Transfer Tax may apply to pre-sales, new builds and resale homes, although qualifying buyers may be eligible for an exemption or reduction. B.C.’s newly built home exemption can reduce or eliminate Property Transfer Tax on an eligible principal residence, with the current full-exemption threshold set at $1.1 million and a partial exemption available above that threshold.
Because tax treatment depends on the buyer, property and intended use, it is important to obtain legal or tax advice rather than relying only on the listing price.
The Simplest Way to Remember the Difference
Pre-sale describes when you buy: before the home is complete.New build describes what you buy: a newly constructed, previously unoccupied home.Resale means the property has been previously owned or occupied.
These categories can overlap. A home purchased as a pre-sale becomes a new build at completion, and a recently completed home can later be sold as a resale while some original warranty coverage remains.
The best option is not simply the newest home. It is the purchase that fits your timeline, financial position, need for certainty and willingness to manage future unknowns.
