What is an Assignment?
An assignment occurs when a buyer who purchased a condo from a builder, typically 2-3 years beforehand, wants to sell that purchase agreement prior to the condo being completed (before closing).
Assignments happen for various reasons:
- people's circumstances may have changed ie. A single person may have gotten married and had kids since they originally purchased and the unit doesn't fit their lifestyle now
- original purchaser is moving out of town
- investors no longer see any further appreciation in their investment or need the money for other investments
- people don't have enough money for condo closing costs
An Assignment then becomes the transfer by the original purchaser (Assignor), of all the rights, title and interest in the original Agreement of Purchase and Sale to the new purchaser (Assignee). You are “stepping into the shoes” of the original buyer.
Assignment agreements are typically sold a few months prior to occupancy.
Benefits of Buying an Assignment Sale
- Lower purchase price than what a similar brand new unit would sell for today. Also, most sellers want to get out of their agreement right away- you have the price negotiating advantage
- Land Transfer Tax credit in Toronto if the original agreement was executed on or before December 31, 2007
- You may get the benefit of GST/HST credits
- You may inherit VIP incentives (interior upgrades to the unit) that you would have otherwise had to pay extra for
- Benefit of full 7 – Year Tarion New Home Warrant
- Enjoy a brand new, never lived in space.
- You can often avoid the large builder deposit requirements.
Contact us today to chat about your search and the assignment opportunities currently available.
These sales are tricky and they require specialized knowledge and expertise. This only comes from years of being in the real estate business and selling 100's of condos. Both of which we have!
If you are interested in purchasing an assignment or have questions as to whether this is the right purchase or investment for you, please call us right away for Professional Advice. We have solid experience in this area. There are legal and financial implications when purchasing an assignment and we make sure that all your bases are covered!
Purchasing an Assignment is typically more technical than a resale condo...it is in YOUR best interests to have an agent working for you right away.
Our information is intended as a guideline only and we recommend you seek independent legal advice with any condo assignment purchase or sale.