Compare Properties

You can compare only 4 properties
Compare Reset
New Construction Condos & Homes by CondoGuru
  • New Construction
    • Condos
    • Detached Homes
    • Semi-Detached
    • Townhomes
  • Articles

Blog

Latest News
  • Home
  • How Assignment Clause work?
20 twenty towns 2 Assignment Clause

How Assignment Clause work?

  • By CondoGuru
  • February 19, 2020September 28, 2020
  • Comments are off

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

In Ontario, assignments are more common in pre-construction condos and pre-built homes, but they are possible on any type of trade.

Assignments sale transactions are very common during the construction stage of new developments by allowing the original purchaser to resell their unit before the sale is completed for the property. Since units is under pre-construction are purchased prior to occupancy, sellers often choose to assign their units before they occupy.

Assignment as Selling In most cases the developers will have certain rules that must be followed. For example, some builders/developers may charge up-to $5,000-$25,000 as administration fee must be paid, 90% of the building must be sold out, the floor plan that you have purchased must be sold out, it cannot be advertised on MLS, and the builder must give permission for assignments to take place. Once all the criteria have been met, it is recommended that you speak to your lawyer to assist you with the assignment.

Assignment as Buying More common, when purchasing an Assignment Agreement is that the assignor is indeed allowed to assign his condo/home. There can be serious complications from the builder if units are assigned without the builder’s permission. The process of purchasing an assignment is quite different than your standard real estate transaction as you are purchasing a contract from the original owner of that contract and assuming all their rights and obligations. So it’s better you get the proper legal advise from your lawyer in order to buy assignment.

Example of how an Assignment works:

Original Purchase Agreement Amount: $450,000

20% Deposit: $90,000

Now New Purchased Price: $540,000

Now difference would be: $180,000 (($90,000 = $450,000 – $540,000) + $90,000 (20% deposit))

This amount is paid to the original purchaser of the Agreement of Purchase and Sale Once the assignment fee is paid to the original purchaser, the new owner is obligated to pay the original purchase price of the property as per the terms of the original Agreement of Purchase and Sale to the developer. When dealing with assignments, it is extremely important for both the assignor and assignee to seek legal advice as these transactions can sometimes become very challenging. When handled correctly, assignment can have a mutual benefit to both parties involved.

We advises anyone participating in an assignment to seek the advice of a tax specialist. Generally, assignors can expect to pay tax on any profits they realized from the assignment. Land transfer taxes are paid by the assignee, as they are only due when the sale closes.

Post navigation

Previous Post 5 Important Factors to Consider When Buying Condo
Next Post Condo fees vs. Maintenance fees (House)

Related Posts

New Construction vs. Resale Homes: Which One is Right for You?

Is It Better to Buy New Construction or a Resale Home? When deciding to purchase a home, buyers often face

Read More

5 Essential Tips for Condo Investors: What You Need to Know

Essential Tips for Pre-Construction Condo Investors – Maximize Your Investment Investing in a pre-construction condo can be an exciting opportunity

Read More

Recent Posts

  • new-construction-home
    New Construction vs. Resale Homes: Which One is Right for You?
    January 7, 2025
  • Pre Construction of Condos in GTHA
    5 Essential Tips for Condo Investors: What You Need to Know
    November 14, 2024
  • Abeja District Condos-arialview
    Why should we invest in the condominium?
    April 7, 2020
  • First Time Home Buyer
    First Time Home Buyers Incentive (FTHBI Program)
    February 19, 2020
  • Buy or Rent
    Rent or Own ???
    February 19, 2020

Find New Pre-Construction Condos & Houses

Browse new homes & condos by Community

  • Fletchers Creek new homes
  • Alton Village new homes
  • Meadowvale new homes
  • Castlemore new homes
  • Toronto Downtown new homes
  • Doon South new homes
  • Danforth new homes
  • Woodbridge new homes
  • Whitby one new homes
  • Elgin Mills new homes
  • Joshua's Meadows new homes
  • Hespeler new homes
  • Hamilton Downtown new homes
  • Waterdown new homes
  • Kleinburg new homes
  • Scarborough new homes
  • North Oakville new homes
  • Breslau new homes
  • Victoria Village new homes
  • North York new homes
  • Fort Erie new homes
  • Vaughan Metropolitan Centre (VMC) new homes
  • Ancaster new homes
  • Streetsville new homes
  • Stoney Creek new homes
  • Lakeview new homes
  • Cooksville new homes
  • Thorold new homes
  • Georgina new homes
  • St. Catharines new homes
  • Gwillimbury new homes
  • Welland new homes
  • Thornhill new homes
  • Lindsay new homes
  • Etobicoke new homes
  • Square One new homes
  • Newcastle new homes
  • Binbrook new homes
  • Springwater new homes

Browse new homes & condos by City/Region

  • King City new homes
  • Innisfil new homes
  • Aurora new homes
  • Caledon new homes
  • Port Hope new homes
  • Toronto new homes
  • Mississauga new homes
  • Brampton new homes
  • Vaughan new homes
  • Burlington new homes
  • Oakville new homes
  • Hamilton new homes
  • Niagara Region new homes
  • Brantford new homes
  • Milton new homes
  • Richmond Hill new homes
  • Markham new homes
  • Waterdown new homes
  • Beamsville new homes
  • Paris new homes
  • Woodstock new homes
  • London new homes
  • Georgetown new homes
  • Durham Region new homes
  • Pickering new homes
  • Dundalk new homes
  • Ajax new homes
  • Oshawa new homes
  • Whitby new home new homes
  • Courtice new homes
  • Bowmanville new homes
  • Barrie new homes
  • Waterloo new homes
  • Cambridge new homes
  • Kitchener new homes
  • Guelph new homes
  • New Market new homes
  • Muskoka new homes
  • Shelburne new homes
  • Wasaga Beach new homes
  • The Blue Mountains new homes
  • Keswick new homes
  • Kawartha Lakes new homes

Browse new homes & condos by Developer

  • CentreCourt
  • Liberty Development
  • Branthaven
  • Andrin Homes
  • Fieldgate Homes
  • CountryWide Homes
  • DECO Homes
  • Cortel Group
  • Sundance Homes
  • Royal Pine Homes
  • Pine Valley Estates
  • Townwood
  • Paradise Developments
  • ARISTA Homes
  • Menkes Developments
  • Adi Development
  • Green City Development
  • Trulife Developments
  • Sierra
  • Brookfield Residential
  • Lakeview Homes
  • Greenpark Group
  • Solmar Development
  • i2 Developments
  • Regal Crest Homes
  • RedBerry Homes
  • Tower Hill Homes
  • UNIQ Communities
  • Lamb Development
  • BAZIS
  • Poetry Living
  • National Homes
  • JD Development Group
  • Tridel
  • The Conservatory Group
  • Tribute Communities
  • Starlane Home
  • Crystal Homes
  • Marydel Homes
  • Digreen Homes
  • Wilson Developments
  • Caivan
  • Lash Group
  • Sequoia Grove Homes
  • Zancor Homes
  • Forest Hill Homes
  • Mattamy Homes
  • Sierra Building Group
  • Sorbara Group of Companies
  • Metropia
  • LIV Communities
  • Rogers Development
  • Stafford Home
  • Fengate
  • Canderel Residential
  • Minto Group
  • Kaneff Corporation
  • Davpart
  • Reids Heritage Homes
  • Remington Homes
  • Emblem Developments
  • Liuna
  • Desantis Homes
  • 95 Developments
  • Rosehaven Homes
  • Collecdev
  • DVLP Property Group
  • RioCan Living
  • Kingsmen Group Inc
  • The Hi-Rise Group
  • Country Green Homes
  • TFC Developments
  • Fusion Homes
  • Haven Developments
  • Pine Glen Homes
  • Treasure Hill Homes
  • Madison Group
  • Mountainview Homes
  • Mikmada Homes
  • Camcos Living
  • Camrost Felcorp
  • New Horizon Development
  • Maple Valley Development
  • Aspen Ridge Homes
  • Lancaster Homes
  • Dunsire Developments
  • Huron Creek Developments
  • Insoho Developments
  • Lindvest
  • AT Developments
  • Lanterra Developments
  • Cachet Homes
  • Laurier Homes
  • Mosaik Homes
  • IN8 Developments
  • Gold Park Homes
  • Consulate Development Group
  • Times Group
  • LCH Developments
  • Flato Developments
  • Yorkwood Homes
  • Highmark Homes
  • Mason Homes
  • Cityzen Development Group
  • Lifetime Developments
  • Empire Communities
  • The Daniels Corporation
  • Evertrust Development
  • Great Gulf
  • Sunny Communities
  • Fernbrook Homes
  • Primont Homes
  • Marlin Spring
  • Ambria Homes
  • Esquire Homes
  • EllisDon
  • OPUS Homes

Looking to Buy or Invest in New Pre-Construction Condos & Houses in Ontario? Get the Priority Access for Floorplans, Siteplans, Prices, Condo Deals & Incentive with Condoguru.ca

Professional

  • Agent Advertising

Partner sites

  • Know Your Property

Links

  • Pre Construction Projects
  • New Condos
  • New Detached Homes
  • New Semi-Detached Homes
  • New Townhomes
  • About us
  • Blog

Disclaimer: Condoguru.ca provides information on new construction homes and condos from various sources, including builders, manual research, third-party sources, and public data. While we strive for accuracy, all information is for reference only. We are not responsible for any use or misuse of the content on our site. Prices, sizes, specifications, and promotions are subject to change by the builder without notice. Renderings are artist’s concepts. E.&O.E.

  • Terms of Service
  • |
  • Privacy Policy
Proudly Canadian
© 2025 Condoguru.ca by Implode Media Inc.
×

Error: Contact form not found.