Frequently asked questions

All your assignment sale questions, answered!

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FAQ

How much is my pre-construction condo worth?

The value of pre-construction is typically determined by looking at the current pricing of assignment units trading the building, new construction sale prices of newer resale units in the surrounding area. Typically pre-construction condos closer to completion are more attractive to end-users who are prepared to pay a greater premium over the initial contract.

What is a condo assignment?

A condo assignment the sale of purchase and sale agreement for a condo. Typically, a condo assignment is done on a condo purchased made during pre-construction directly from the developer.

What is an assignment sale?

An assignment is the sale of the contract to purchase the contract with an underlying asset. In this case, the assignor (the seller of the original contract) does not own the property in the land registry and the assignee (the buyer of the original contract). Most assignments are for purchase agreements with a longer close.

What are the rules around buying and selling a condo assignment?

In most cases their some restriction about requiring the original seller(or vendors) consent. For pre-construction condos purchased directly from developers almost every agreement has a clause and/or amendment explaining the restrictions on assigning units. Some common restrictions/costs would be:

  • Builder must sell 95% (or some specified percentage of the building) before Buyers can begin assigning.
  • Assignment fees from $2,000-$10,000
  • Vendor legal fees from $500-$2,000.
  • No assignments until the construction of the roof.
  • Restriction on marketing the assignment
How do I get out of my pre-construction condo?

In order to get out of you pre-construction condo you can assign the unit to another buyer with the consent of the developer. In many cases there are restrictions on how you can market the property, In most cases you are not allowed to list it on MLS. You can sell it quickly to an assignment buy investors like One Day Assignment or you can try and find your own buyer. It is important to make sure that you are within the development guidelines set-out in the Agreement of Purchase and Sale or else you can void the agreement and lose your deposit.

Will I lose my pre-construction deposits? 

Assigning a condo will typically have the Buyer (assignee) replace the Seller’s (assignor’s) deposit and have it credit to them as part of the deal. Profits may be realized at the time of assignment but most commonly the majority will come at final close.

Are there any contractual obligations I must follow?

Yes. Those that are set-out in the initial agreement and they differ from one agreement to another.

Who will buy my condo assignment?

Depending on the unit an investor like ourselves or an end-user buying it for themselves.

Are there any fees to get out of my assignment?

The fees for the assignments are set-out in the Agreement of Purchase and Sale.and vary from agreement to agreement.

  • Assignment fees from $0-$10,000
  • Vendor legal fees from $500-$2,000.
  • Real Estate fees to find a buyer if required.