Pre-sale buyers facing completion in a softer market have real options — most better than walking away. Here's the realistic playbook.
In brief
If you can't complete a BC pre-sale because the market has softened, walking away is almost always the worst option — developers can pursue both your deposit (typically 15–20%) and damages beyond that (one BC ruling awarded $360,000). Realistic paths are completing and holding, completing and selling, assigning the contract at a discount, or negotiating an extension or release with the developer.
The 2026 reality is that buyers who signed pre-sales at 2021–2022 peaks are now completing into a softer market — some projects are selling at completion below their original pre-sale prices, and assignment contracts are trading at meaningful discounts. The financial loss from walking away usually exceeds the loss from completing. Before you do anything irreversible, understand all four paths.
96–99%
Tri-Cities Market Sale-to-List
97%
Sebastian's Avg Sale-to-List
36
Sebastian's Avg Days on Market
Current Tri-Cities sale-to-list and Sebastian's recent results. The completion market is softer than the pre-sale market — that's the gap that creates the problem, and the constraint on the solutions.
It's the most expensive option in almost every case. You forfeit your deposit (typically 15–20% of the purchase price), and the developer can sue for additional damages — the difference between your contract price and what they ultimately sell the unit for, plus carrying costs and legal fees.
BC courts have been awarding these damages. In one 2024 case a buyer who walked from a $1.6M contract was ordered to pay roughly $360,000 in damages on top of the forfeited deposit. Assume your worst-case exposure is the deposit plus the market gap.
Most BC pre-sale contracts allow assignment, but with the developer's written consent and often a fee (commonly 1–2% of the contract price). The assignment market for units bought at 2021–2022 peaks is currently trading at discounts of 10–25% off original pre-sale pricing, depending on the project.
Assigning still costs you — but it caps your exposure. If you assign at a $50,000 discount on a $1M contract, you net the loss but avoid both the deposit forfeiture and the developer damages claim. Talk to the developer's assignment-coordination team early; some buildings restrict the marketing of assignments.
Your lender will only mortgage against the lower of the contract price or the appraised value. If they come in low, you have to make up the shortfall in cash. On a $1.2M unit that appraises at $1.05M with 20% down, you'd need an extra $30,000 cash to close.
Options: switch to a lender with a different appraiser (not always different), order a second appraisal (your cost), ask the developer for a price reduction (rare in 2026 but increasing), or use savings/family/HELOC to bridge the shortfall. If none of those work, you're at decision point one through four.
Run the cashflow honestly. Take expected rent minus mortgage payment, strata fees, property tax, insurance, vacancy allowance (~5%), and a maintenance reserve. If the result is still negative cashflow but the loss is meaningful smaller than the deposit-plus-damages scenario, holding is often the right move — you ride out the market.
Note: investor-occupied condos count as rentals for tax purposes from day one, which affects both capital gains treatment when you eventually sell and the BC home-flipping tax if you sell within two years.
If you sell within 365 days of purchase (in this case, the completion date is generally the 'purchase' date for resale-after-completion), the BC home-flipping tax applies — 20% of net profit, sliding to 0% by day 730. You also owe federal capital gains tax on any profit on the same property if not your principal residence.
But in a falling completion market the 'profit' may be a loss, so the flipping tax is often moot. The bigger question is whether you can sell at completion for more than you'd net by assigning before close. The cleanest comparison is total cash out the door under each path.
Sometimes — particularly if the developer has unsold inventory in the building and would rather take your unit back than litigate. Approach in writing through a lawyer; don't wing it. Offers that have worked: extending the completion date by 60–180 days against a small fee; reducing the contract price in exchange for an immediate close; mutual release with partial deposit return.
The leverage you have shifts based on the developer's own balance sheet and the building's sales pace. It's worth asking — many buyers don't, and accept the deposit loss without exploring this.
Can the developer keep my deposit if I walk away from a pre-sale?
Yes — and they can also sue for additional damages: the difference between your contract price and what they ultimately resell the unit for, plus carrying costs and legal fees. BC courts have awarded these damages, including one case where a buyer paid $360,000 on top of the forfeited deposit.
How much loss should I expect on a pre-sale assignment in 2026?
Discounts of 10–25% off original pre-sale pricing are common right now, depending on the project, the unit, and the developer's posture on assignments. Get a realistic assignment-market estimate before deciding to complete vs. assign.
What if I can't qualify for the mortgage at completion?
Lender shortfalls are the most common trigger. Options: re-shop the mortgage with a broker; bridge the cash shortfall via savings or HELOC; ask the developer for an extension; assign the contract. The worst response is to ignore the closing date — that forfeits the deposit by default.
Is there a way to get my deposit back?
Not on a simple change of mind. Some contracts have rescission rights for specific developer-side breaches (material misrepresentation, missed disclosure, project changes). A real estate lawyer should review your contract before you assume your deposit is lost.
Does the BC home-flipping tax apply if I sell right after closing?
Yes — if you sell within 365 days of acquiring the property (completion date) the full 20% rate applies on profit, declining to 0% by day 730. The good news is that if you're selling into a softer market, there may be no taxable profit anyway.
Can I rent out the unit if I close on it?
Yes, subject to the strata's rental restrictions (check the bylaws) and BC's Residential Tenancy Act. Carrying it as a rental for several years lets you avoid both the flipping tax and many of the short-term consequences.
Should I get a lawyer before making any decisions?
Yes — for any path other than completing as agreed, talk to a real estate lawyer who has handled pre-sale completion problems. Contracts vary; so do remedies and damages exposure.
Pre-sale completion, divorce, an inherited home, a special levy — these situations move faster when you know your options. I'll walk you through them, free.
Book a private call → Or call Sebastian directly: (604) 788-4355Do you owe it if you sell within two years? Sliding scale + exemptions.
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This page is general information, not legal, tax, or financial advice, and figures are current as of May 2026 and subject to change. Every home and situation is different — confirm specifics with a qualified real estate lawyer, accountant, or the relevant authority (BC Government, CRA) before acting. Sebastian Czarkowski is a licensed REALTOR® (BCFSA), not a lawyer or tax advisor.