Looking for hot real estate deals but don’t want to go into multiple offers on an old home, or wait for 3-4 years to get your keys from the builder? Let’s talk about Assignment Sales … 

Read more about why an assignment deal could be ideal for you on your investment journey!

We Understand The Assignment 

For starters, what is an Assignment Sale? An assignment is a sales transaction where the original buyer of a property (the assignor) allows another buyer (the assignee) to take over the buyer’s rights and obligations of the Agreement of Purchase and Sale, before the original buyer closes on the property. The assignee is the one who ultimately completes the deal with the builder/vendor.

In other words, an assignment clause allows the buyer of a home to sell the place before they take possession of it.

Why Do People Sell Assignments?

There are lots of reasons for someone who previously bought a pre-construction property to want to sell it before they get their keys. For example, the timeline for construction of a new build property can be anywhere from 1-5 years (depending on the development) and life happens! The original buyer’s work or family situation could change, ultimately pivoting their plans on living or using the property. Maybe they have run into some financial troubles and are unable to obtain a mortgage or close in general. An assignment can help the original buyer legally back out of the deal without any financial penalties (and sometimes with a profit in their pockets!)

Why Do People Buy Assignments?

Once again, the reasons to buy an assignment are vast! Finding a good deal on a brand new, never lived in property without waiting several years while the building is under construction can be very convenient for those looking for a quicker close. In some cases, where the original buyer (the assignor) cannot close on their unit, to relieve themselves of the transaction and costs associated with it, they may sell their unit on a discount… or sell at a price very close to which they it bought during the original purchase - saving the new buyer (the assignee) hundreds - thousands of dollars! 

Benefits of Purchasing an Assignment

The Assignee gets a brand new unit without all the wait!

The Assignee can take advantage of distress sales or discounted units!

The Assignee has a better picture of what the unit or development will look like vs pre-construction launch phases!

The Assignee has far less competition vs buying a resale property!

Things to Consider

The Assignee will need more cash upfront - typically the 20% of the purchase price the Assignor paid to the builder will be paid upon Accepted Assignment Agreement!

The Assignee will need to finish any additional deposits or payments under the original contract with the builder!

The Assignee will be obligated to obtain a mortgage and complete the transaction with the builder/vendor

WANT TO LEARN MORE ABOUT INVESTING IN ASSIGNMENT SALES?

Contact Our Team:
My Condo World 
eMail: admin@mycondoworld.ca
Office: 905-582-0868