Buying or Selling Condo Assignments

If you have made the decision to invest in property, ‘assignments’ are something you will most likely have heard about but may not fully understand. You are not alone, in fact, it is an area of property investment that not all realtors understand themselves.

Buying and selling condo assignments is an area we specialise in and with our expertise, we can show you how to reap the rewards of this lucrative area of property investment.

What is an ‘assignment’?

When a buyer agrees to purchase a condo from a builder during the pre-construction phase, they sign a pre-construction purchase contract (with a price, terms and conditions, a deposit etc.). If the buyer of a pre-construction condo changes their mind and decides to sell before the occupancy period or before the official close, they cannot sell it as they do not own the condo yet. What they can do is sell their contract (their agreement with the builder to buy a unit), this is what we call an ‘assignment’.
An assignment is a sales transaction where the original buyer of a property (the “assignor”) allows another buyer (the “assignee”) to take over the buyer’s rights and obligations of the Agreement of Purchase and Sale, before the original buyer closes on the property. The assignee is the one who ultimately completes the deal with the Developer/Builder.
When done properly, assignments are legal and can be a useful tool for buyers and sellers.
Buying and selling assignments is very different from buying and selling completed condo. There are several risks and legal requirements that must be met and the paperwork is very different from the usual agreement and purchase of sale for a condo. As with any contract, it’s crucial for buyers and sellers to know what they’re signing. It’s important to know what each clause means and how it will affect you. We will explain every clause in the contract to you. Your contact will also be reviewed by a lawyer before it becomes binding. Real estate contracts are legally-binding, so getting legal advice before firming up is recommended.