You may be wondering, "what are the cost associated with condo assignment sales?"
Typical Costs/Rebates Associated with an Assignment Sale and Purchase.
The Assignor is responsible for the following costs:
- legal fees and disbursements
- builder consent fees
- Real Estate commission
The Assignee may pay the following on occupancy:
- Final deposit (if applicable)
- Occupancy fees:
i. Estimated property taxes
ii. Estimated common expenses
iii. Interest on purchase price.
The Assignee may pay the following to the Builder on final closing:
a. Estimated property taxes for up to 2 years
b. Hydro/water/gas meter installation and connection charges (approx. $500–$700 per
c. Development charges/levies (potentially thousands of dollars)
d. Tarion New Home Warranty (ranging from $600–$1,900. See Tarion website for fee
e. Discharge of builder’s mortgages (approx. $200–$300 per mortgage)
f. Builder’s lawyer’s Law Society charge (approx. $70)
g. Compensation for the Builder–cost of handling the Assignor’s deposit cheques (approx. $250)
h. 2 months of occupancy fees for reserve fund
i. Other amounts set out in the Agreement of Purchase and Sale.
These costs are typically not financed with a mortgage.
The Assignee is responsible for the following additional fees:
a) Legal fees and disbursements
b) Land transfer tax (provincial and municipal).
c) GST/HST rebate.
d) Municipal levies.
After the condominium is registered, on final closing the Builder transfers title to Assignee. The Assignee pays the balance to the Builder. The Assignee may also pay any amount still owed to the Assignor.