Condo And Home Assignments Opportunities in Toronto and the GTA by Tariq Mumtaz
What is an assignment?
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 (that is, where they take possession of the property). The assignee is the one who ultimately completes the deal with the seller.
In simple words, an “assignment” is the sale of a contract to purchase a pre-construction condominium or freehold property.
Benefits of Assignments for the Buyers
- Buying a property at a reduced discounted price saving thousands of dollars compared to purchasing a resale unit at market value.
- Luxury of buying brand new unit and often pay lower maintenance fees.
- Sellers usually need to sell because they need to drop their equity. This can give you leverage in negotiation for prices, deposits, and closing dates.
- Fewer people look at these types of listings, so Less Competition, no Biddings.
- You will get your unit much faster instead of waiting 4-6 years like in a typical pre-construction contract as occupancy is usually couple of months away.
- Depending on how far along construction is, you may still be able to select your own finishes, colors and upgrades.
- You have more choices and options when there’s a shortage of listings in the market.
- You will likely get great incentives like the seven-year Tarion Warranty Program and other incentive from the builder like credits, upgrades, capped developing charges and much more.
- Assignment sale