An assignment allows a pre-construction condo purchaser to sell their contract with the builder to another party, typically before they take possession of the property. The new buyer (known as the assignee) assumes all rights & obligations in the original agreement of purchase & sale and closes on the property at a later date, usually once construction is complete and the building is registered.
Condo assignments can be used for a variety of reasons. Often, they occur because the original purchaser’s circumstances change before they can close on the property. These changes may include a job relocation, marriage, or unforeseen financial challenges.
Although assignment sales can be done on any type of real estate, they are very popular in the pre-construction condominium world. A good realtor will understand this niche and be able to guide their clients through the process. They can also help their clients avoid marketing restrictions that the builder might impose on assignment sales. For example, a builder might require that the assignee pay additional closing costs and redeem VIP incentives like design/upgrade credits and capped development charges.
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