How Do Condo Assignments work?
If you wish to buy a brand new suite in a newly built condominium in your area only to find that all condos in your chosen area have been sold out? Even if you discover that condos you wish to own are sold out, you can still buy them. That is possible with an ‘Assignment of Agreement of Purchase and Sale’ or simply known as ‘Assignment Sale’.
Why do people Assign Their Condo?
A buyer who has bought a new condo in pre-construction stage a couple of years back decides to sell his condo before closing due to some reason such a change in financial condition, job, marital status or wish to make a profit. It cannot be a sold using conventional methods as City has not given the permission for Occupancy yet. Though original buyer can legally assign the condo to a thirty-party buyer through ‘Assignment of Agreement of Purchase and Sale’.
Benefit To the Buyer (Assignee)
There can be various reasons for entering into such an agreement.
- Mostly, It’s the only way for the buyer(Assignee) to purchase a brand new unit within a few months of completion thus avoiding the risk of the project being cancelled (lost equity) and long wait time of typical pre-construction.
- Buyer (Assignee) receives a price discount over current properties on the market. This is a great way to build equity in the unit as prices typically go up once the Building is registered and Condos are offered on the resale market.
- Buyer will receive a brand new home with Tarion warranty and depending on the stage of construction, the ability to make finish selections.
- Buyer may sometimes take advantage of the deposits made by the Assignor and may be able to put a lower deposit (especially if the unit is in occupancy and close to final closing).
Benefit To the Seller (Assignor)
Assignments Comprehensive Guide & FAQs
Do you have more questions? We have written a comprehensive guide for our clients.