Can I Assign My Condo?
a common question that many people who have bought pre-construction condos in Toronto have, “Can I assign my Condo?”.
The answer is it depends. It depends what is in your contract, or your Agreement of Purchase and Sale that you have with the developer.
Every Agreement of Purchase and Sale will have a clause that deals with the handling of assignment sales when purchasing a new condo. By default, most contracts will forbid the assignment of units, but many developers have included the ability to assign as incentive for buyers to purchase. Also, many savvy buyers insist on having the ability to assign written into their contracts if it is not there by default. (Remember, it is not in the best interests for the developer to have individual sellers re-selling their product before the building is completed.)
If your contract allows you to sell by assignment, there usually is a fee to do so. The fee often is in the $3000-$5000 range. This is not negotiable.
In some cases, even if you do not have an assignment clause in your original contract, the developer may allow you to assign your unit as a one-off scenario, or they may be willing to add an assignment clause to your contract.
Final word of caution: Never assume anything. Always consult your Realtor, your lawyer, and the developer before proceeding with any effort to sell your condo by assignment.
Wondering if you can assign your condo? Contact me.
see my other posting about : What is An Assignment? and how it works
Some of readers have picked up on the fact calling last year 2009 “The Year of the Assignment“. Last year it was all about getting into the VIP sales events. but infact This year, savvy investors and first time buyers alike are taking a serious look at assignment sales as possibly the best way to take advantage of the current market.
It is with this in mind that I will be doing a mini-series on the blog over the next few weeks outlining the ins and outs of assignment sales and why you should care about them if you planning on being either a buyer or a seller of a Toronto condo in the next 12-18 months.