Presale Strategy — Coquitlam · Port Moody · Port Coquitlam
Assign Your Presale Contract or Complete and Sell Later? A Plain-English Decision Guide for Tri-Cities Owners
If you signed a presale condo or townhome contract in Coquitlam, Port Moody, or Port Coquitlam during the 2021–2022 peak, you may now be staring at a completion date on a unit worth less than you contracted to pay. You have three realistic paths: assign your contract before keys are handed over, complete the purchase and sell on the open market, or complete and hold the property as a rental. None of these is automatically right, and the wrong choice can cost tens of thousands of dollars in tax, lost deposits, or missed opportunities. This guide walks you through each path in plain English — including a worked example with real numbers — so you can have an honest conversation with your REALTOR® and your accountant before you decide. For a deeper dive into how assignments are structured under BC law, see the full guide to presale assignments in BC. Browse current Tri-Cities listings →
Before comparing the three paths, it helps to understand exactly what an assignment is — and what it is not. When you assign your presale contract, you are selling your contractual rights to a buyer (the assignee), not a finished home. The assignee steps into your shoes and completes the purchase directly with the developer at the original contract price. Because you are transferring a contract rather than a property, the developer’s written consent is required under BC’s Real Estate Development Marketing Act (REDMA), and the developer almost always charges a fee — commonly a flat amount or one to three percent of the original price, though you must read your specific contract. Many developers also prohibit MLS listings or public advertising until the building is substantially sold, which shrinks the buyer pool considerably and makes pricing the assignment harder.
The price structure of an assignment has three layers: the original contract price, the deposit reimbursement (typically fifteen to twenty percent of the original price), and the assignment amount — also called the lift or premium. In a rising market, that lift is positive and the assignor profits. In a market like 2026, with values softening from the 2021–2022 peak, the lift is often negative: some Metro Vancouver presale contracts from that era are being assigned at fifteen to twenty-five percent below the original contract price. That means the assignee pays less than the original buyer agreed to, and the assignor absorbs a loss on top of the opportunity cost of having their deposit tied up for years. The critical benchmark is not the 2022 price you paid — it is today’s resale value of a comparable finished unit in the same neighbourhood.
Tax is where assignments get complicated fast. Since May 7, 2022, every assignment of a BC presale contract is a taxable supply for GST purposes. The assignor must collect five percent GST on the assignment amount if it is positive; the deposit reimbursement is excluded from GST only if the assignment agreement specifically says so in writing. The assignee then pays GST again to the developer on the original price at completion — so GST effectively applies at both stages.
For property transfer tax, the assignee pays on the full amount paid (original price plus any lift), though the newly-built-home exemption (fair market value up to $1.1 million, phasing out to $1.15 million) and the first-time-buyer exemption can still apply because the unit registers for the first time at completion. Use the property transfer tax calculator to model your specific numbers.
On the income side, the federal property-flipping rule treats any purchase right held under 365 days as business income — no capital gains treatment, no principal residence exemption — and the CRA has confirmed this covers assignment proceeds. BC’s home-flipping tax, in force since January 1, 2025, layers on a twenty percent rate on presale contract profit under 365 days from signing, sliding to zero at 730 days; critically, the $20,000 primary-residence deduction does not apply to assignments. If you assign at a loss, there is no profit to tax under the flipping rules, but a BC return may still be required.
For more on how GST applies throughout a new-home purchase, the GST on homes in BC guide and the GST rebate calculator are useful starting points.
One more procedural point for buyers considering taking over a contract: there is no rescission period on an assignment. The seven-day REDMA rescission right belongs to the original developer purchase, and the three-business-day Home Buyer Rescission Period is generally understood not to apply to assignment transactions. The assignee must pay the deposit reimbursement plus any premium in cash up front, and lenders typically mortgage only the original contract price or appraised value — not the lift. Get written lender confirmation before you sign anything. Finally, every assignment must be reported to BC’s Condo and Strata Assignment Integrity Register (CSAIR), which shares both parties’ SIN and tax information with the CRA, so there is no quiet way to do this.
Related resources
Helpful tools & guides
- full guide to presale assignments in BC
- stuck in a presale you can’t complete
- GST on homes in BC
- GST rebate calculator
- property transfer tax calculator
Key takeaways
Before anything else, answer this question honestly: if your lender orders an appraisal and it comes in below the original contract price, you must cover that gap entirely in cash. Your lender will not finance a shortfall. If you cannot come up with that money and you walk away from the purchase, you forfeit your entire deposit and expose yourself to a damages claim from the developer for any losses they suffer reselling the unit. That is not a hypothetical — it has happened across Metro Vancouver. If you are in this position, read the guide for buyers stuck in a presale they cannot complete before making any moves. If completing is financially possible, even if painful, you have real options. If it is not, the conversation shifts to damage control.
The following numbers are hypothetical and for illustration only. Suppose you signed a presale contract in 2022 for $700,000 and paid a fifteen-percent deposit of $105,000 (some contracts run to twenty percent — use your actual figure). Today a comparable finished unit in the same building sells for $620,000 on the open resale market. Under an assignment, a realistic buyer might pay: $700,000 (original price) minus a $80,000 negative lift (to match today’s resale value less their closing costs), which means your deposit comes back but the negative lift wipes out $80,000 of it. Subtract the developer’s assignment fee (say one percent of $700,000 = $7,000) and there is no positive lift to attract GST. You walk away having recovered roughly $18,000 of your $105,000 deposit — a real loss, but the transaction is done. Under complete-and-sell, you close on the $700,000 purchase — paying GST on that amount (offset partially if you qualify for the new-housing rebate; run it through the GST rebate calculator), property transfer tax (check the PTT calculator for any exemption), plus legal and closing costs. You then list on MLS with full market exposure and aim for $620,000 or better, paying commission and legal fees on the sale. The advantage: you reach every buyer in the market, not just those hunting private assignments. The disadvantage: you carry mortgage payments and strata fees during the listing period, and if you sell inside 730 days of your original signing date, BC’s home-flipping tax applies to any profit. In this example there may be no profit — which eliminates the flipping tax — but confirm with your accountant because the calculation uses the cost base, not just the original contract price.
Holding the unit as a rental lets you wait out both the market cycle and the 730-day BC home-flipping window without triggering the tax. From your original signing date in 2021 or 2022, 730 days has likely already passed or is close — confirm the exact date. The questions to ask before choosing this path: Does the disclosure statement permit rentals, or does the strata have rental-restriction bylaws? Is the anticipated rent enough to cover your mortgage, strata fees, insurance, and property tax — or are you subsidising a negative cash-flow property? And are you prepared to be a landlord under the BC Residential Tenancy Act, which significantly limits your ability to reclaim the unit? If the answers are workable, holding can make sense. If the strata bans rentals or the monthly shortfall is unsustainable, this path closes quickly.
If you are considering purchasing an assignment, the potential discount relative to a finished resale unit is real in the current Tri-Cities market. But understand what you are buying: a contractual right, not a home, with no rescission period and a significant upfront cash requirement. You must pay the deposit reimbursement plus any premium out of pocket on the assignment closing, then arrange your mortgage separately for completion. Most lenders will finance the original contract price or appraised value — whichever is lower — not any lift above it. You will also owe GST to the developer at completion, and PTT on the total consideration. Work with a mortgage broker and get written confirmation of your financing terms before you sign the assignment agreement. The full guide to presale assignments in BC walks through the buyer’s checklist in detail.
Frequently asked questions
Common questions answered
What does it mean to assign a presale contract in BC?
Assigning a presale contract in BC means you transfer your contractual right to purchase a unit from the developer to a new buyer (the assignee). You are selling the contract, not the finished home. The assignee completes the purchase directly with the developer at the original contract price. The developer’s written consent is required under REDMA, and a fee is almost always charged. Because the unit has never been registered in your name, this is not a real estate sale in the traditional sense, but it carries its own set of tax obligations, including GST on any positive assignment amount since May 7, 2022.
Do I pay GST when I assign my presale condo in BC?
Yes. Since May 7, 2022, every assignment of a BC presale contract is treated as a taxable supply. As the assignor (original buyer), you must collect and remit five percent GST on the assignment amount if it is positive. The deposit reimbursement portion is excluded from GST, but only if the assignment agreement explicitly says so in writing — the exclusion is not automatic. If the assignment amount is negative (you are assigning at a loss), there is no positive amount on which GST applies. The assignee separately pays GST to the developer on the original contract price at completion. For a full explanation of how GST applies to BC home purchases, see the GST on homes in BC guide.
Does BC’s home-flipping tax apply to presale assignments?
Yes. BC’s home-flipping tax, which came into force on January 1, 2025, applies to income from assigning a presale contract. The tax rate is twenty percent on any profit when the contract is held under 365 days from the original signing date, sliding down to zero percent at 730 days. Critically, the $20,000 primary-residence deduction that applies to flips of physical homes is not available on presale assignments. If you sign a 2021 or 2022 presale contract and are approaching or past the 730-day mark from signing (not from completion), you may already be past the taxable window — but confirm the exact dates with your accountant. A BC home-flipping tax return may be required even if you are exempt or have no profit.
Is there a rescission period when buying a presale assignment in BC?
No. There is no rescission period for an assignment purchase. The seven-day REDMA rescission right applies only to the original purchaser’s agreement with the developer, not to a subsequent assignment. The three-business-day Home Buyer Rescission Period introduced in BC is generally understood not to apply to assignment transactions either. This means that once you sign an assignment agreement, you are bound by it. Buyers should complete all due diligence — including written lender confirmation and a review of the original presale contract and developer consent terms — before signing.
What property transfer tax does the assignee pay in BC?
The assignee pays property transfer tax (PTT) on the total consideration paid — the original contract price plus any positive lift. However, because the home registers for the first time at completion (never having been titled before), the assignee can still potentially qualify for the newly built home PTT exemption (fair market value up to $1.1 million, phasing out to $1.15 million) or the first-time buyer exemption. Whether you qualify depends on your specific situation and the property’s value. Do not rely on general figures — use the BC property transfer tax calculator and confirm with a lawyer or notary before closing.
Sebastian Czarkowski
REALTOR® · Royal LePage Elite West · Coquitlam, BC
Questions about buying or selling in the Tri-Cities? Reach out directly.
For educational purposes only. Not intended as financial or legal advice.
Sebastian Czarkowski, REALTOR® | Royal LePage Elite West | sebastianrealestate.ca