What is an Assignment Sale and How Can They Benefit You
If you’re looking for a new home, you may want to consider assignment sales in the pre-construction real estate market.
What is an assignment sale?
An assignment sale is when a buyer sells their contract to purchase a pre-construction condominium suite to another buyer before the condominium is built. The original contract includes an assignment clause/right, which allows the buyer to sell the contract before the property is transferred into their name.
What are the benefits of an assignment sale?
One of the primary benefits of selling or buying an assignment sale is that it allows buyers to purchase a unit at a price lower than the market rate. This is because the original buyer, or assignee, has already put down a deposit on the unit at an earlier stage of development when the price was lower.
Buyers who purchase during the earlier stages of pre-construction end up paying less for the unit and will have the option of reselling the contract to another buyer at a higher rate once the construction is completed.
This offers sellers or assignors profit before the unit is even built.
What is the process for an assignment sale?
During the process of an assignment sale, the assignee, or original buyer, assigns their interest and rights in the original Agreement with the seller. The assignor, or new buyer, then assumes all the obligations under the original agreement, including performing all of the assignee’s obligations.
The primary responsibility of the new assignee is to make sure that they are comfortable with the original condominium purchase contract before buying the contract from the assignor.
Once the building has been registered with the city, the ownership is transferred to the buyer, and the sale becomes final.
Is an assignment sale right for you?
The unique benefits of assignment sales in pre-construction real estate make it an attractive option for many buyers. But, as with any major purchase, it’s important to consider your individual circumstances and reasons for wanting to invest in pre-construction real estate.
At GTA-Homes, we’re committed to sharing our knowledge of the pre-construction market with our clients so that they can make informed decisions about their investments. Contact us today to learn more about how assignment sales could benefit you.
