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Vancouver Presale Condo : Down-payment or Deposit

Blog by Gaëtan Kill | February 12th, 2014

2gxr4n6.jpgVancouver presale condoIf you are considering purchasing a Vancouver presale condo, you have probably already encountered the question of deposits. Though the developer has probably already told you one number, it is essential that you ask a qualified realtor about standard deposits for presale condos in Vancouver area. Only when you understand what is standard and what is outrageous, you will be able to make an informed decision about whether or not to put a deposit down on a presale condo. 

  • In vast majority of developers of Vancouver presale condos will require around a 15-20% deposit. In special circumstances, as in markets where there is a lot of competition, some developers will only require a 5-10% deposit of the purchase price. These numbers are generally a result of the developer’s own financial obligations. Just as you are required to pay a deposit on the property, he, too, is require to pay a deposit to the bank. This is why developers often give buyers very little flexibility when it comes to these deposit terms.
  • Though this deposit seems substantial, it is generally paid over time. Often, developers are required by law to only accept 10% of the original purchase price at first, and then, once the building permit has been obtained, can collect the rest.
  • All of this information will be outlined in detail in the “Contract of Purchase and Sale.” If it is too complicated, do not be afraid to enlist a realtor who has experience selling Vancouver presale condos. This contract will also include how often other deposits will be due and how those payments will need to be made. Be sure to read this area over thoroughly.
  • Another thing to be aware of is that if you ask for any customization of your presale condo, you may incur an additional fee or deposit. This often will be a much higher percentage, sometimes up to 100% of the cost of the customization.

Whether you opt for customization or not, before entering into any contract for a presale condo, make sure you are prepared for the initial deposit, whether it is 10% or 20%. Only the developer will be able to tell you the exact percentage.