What is an Assignment Sale ? Can I sell my pre construction condo unit or my new Detach house before closing?

These days you may have heard the term “Assignment Sale” a lot as it has become really popular amongst condo investors. Assignment Sales are defined as follows: The Assigning or Selling of your rights to purchase a property.

To clarify, you’re not actually selling the property. Since the Assignor (Seller) hasn’t taken possession yet (usually because it’s not built or has not registered yet), they are simply assigning the rights to the Assignee (Buyer).In layman's term, an assignment is when the original buyer of a pre-construction property (who signed a contract with the builder) sells their contract to someone else before the purchase closes. Essentially, the buyer takes over for the seller in the contract and pays the deposit plus appreciated value/profit.

A few things to remember if you are Buying a contract :

• As a Assignee/Buyer you are not buying a property from Assignor, you are buying the “right” to acquire property from a 3rd party (usually a builder)

• Assignor assigns its interest and rights in the Original Agreement with the Builder

• (or original seller)

• Assignor assigns to the Assignee its interest in the original “deposit”

• Assignee “assumes” and agrees to perform all of the Assignor’s obligations under the Original Agreement

So Can I assign my contract any time ?

Although you have the interest and rights on the property, you don't own it yet. the right to assign the APS is not automatic. At the very least it is contingent on the consent of the Builder. Keep in mind that some builders will allow the assignment at no cost while some will charge some assignment fee or at times no assignment is permitted. To ensure the right to assign is included in your pre-construction APS, it is very essential that you have the APS reviewed by a lawyer within the ‘cooling off’ period if the property is a condominium, or during a conditional period in the APS.