More commonly referred to in Europe as an off-plan sale, a pre-sale is a property sold - sight unseen - before it is built. Developers sell off properties in advance in order to obtain extra funds for the development phase. Often, condominium developers are required to sell a certain percentage of units before a lender will commit to finance construction of the project.

Pre-sales are an opportunity for buyers in a rising market because the price of the property is locked at the point of sale, and the purchaser does not need to be approved for a mortgage until the property is completed. By the time the property is finished and the purchaser moves in, the investment could be worth much more than the original purchase price.

Prior to receiving the proceeds of a real estate sale in Canada, it is necessary for nonresidents selling property to obtain a Clearance Certificate from Canada Customs and Revenue Agency. (More)

People generally buy off-plan as an investment. There is an element of risk involved in off-plan investment, and the purchase price reflects this. In times of high demand, it may be the only way to get your hands on a hot property in a sought-after area.

Historically, investors have fared well buying property off-plan. Good-quality new homes are often re-valued shortly after completion, with surprisingly high gains for the original buyers. In times of a rising property market, it is entirely possible to achieve a significant profit - even before a brick has been laid - through an Assignment sale.

Buying off-plan means that the purchaser often does not have to pay the balance for quite some time after signing the contracts. During this period, the value of the property could rise. The buyer has not had to sell their existing home yet, which means he or she can reap the extra monetary benefit by selling later at a higher price.

Prior to receiving the proceeds of a real estate sale in Canada, it is necessary for nonresidents selling property to obtain a Clearance Certificate from Canada Customsand Revenue Agency. (More)