ASSIGNMENTS

WHAT IS AN ASSIGNMENT SALE? …

An assignment sale is the transfer of title of a builder purchase & sale agreement for a pre-construction home/ condo, yet to be built or currently under construction. They are usually priced slightly below market value than comparable resale properties in the neighbourhood. If you want to buy in a particular new development where the builder is sold out, an assignment may be a great option for you! If you would like more information about assignments currently available, please contact me.

HOW DO ASSIGNMENTS WORK? …

EXAMPLE:

Original Purchase Price: $350,000
Assignment (Sale) Price: $450,000
Seller Profits: $100,000
Builder Deposit: $70,000
Amount Buyer Needs Upfront: $170,000 (Seller Profit + Builder Deposit)

STEP 1: Buyer A purchases a pre-construction condo for $350,000 from a Builder.

STEP 2: Buyer A decides 2 years later after purchasing the pre-construction condo that they want to assign the unit before the condo is completed. Buyer A decides to assign their condo purchase. Buyer A paid a total of $70,000 in Builder Deposit’s to Builder.

STEP 3: Buyer A (assignor/seller) reaches an agreement to assign the pre-construction condo unit for a price of $450,000 to Buyer B. Buyer B (assignee) has all the required money upfront to complete the assignment.

STEP 4: Assignor and Assignee reach out to their lawyers to review the agreement to assign, and all necessary documentation in the Original Agreement. Assignee’s lawyer reviews all documentation with Assignee and signals to go through with the purchase.

STEP 5: Assignor contacts the Builder and arranges for Builder to transfer title to Assignee. An appointment is made at the Builder’s office where title is transfered.

STEP 6: After title has been transferred at Builder’s office, all money is transferred to assignor and assignment is completed.

This is just an example, if you’re interested in buying or assigning a unit and have any questions, please contact me.