In Real Estate, an assignment of an Agreement of Purchase and Sale (APS) occurs when the original purchaser (Assignor) from the Builder agrees to allow a new purchaser (Assignee) to take over the contract with the Builder. The original purchaser does not have to take possession or title to the property. The new Buyer takes over and completes the property purchase with the Builder.
Why do people Assign?
Benefits of an Assignment
To the Seller (Assignor)
To the Buyer (Assignee)
Risks Associated with an Assignment
For the Buyer (Assignee) when you purchase an assignment you take on all the terms and conditions of the original Agreement of Purchase and Sale contract. So if the original Buyer did not get their Lawyer to review the agreement to make sure things such as levies were capped then those risks are passed on to you. Assignee can protect himself by making sure the Assignment agreement has a clause that makes offer conditional on your Lawyer reviewing the original APS.
Assignee is also responsible for all the costs associated with purchasing brand new: Tarion Warranty fees, Builder fees, Development Levies, Utility connection fees and contribution to Condo Board reserve fund.
For the Seller (Assignor) risks include responsibility for any assignment fees charge by the Builder. In the event that Assignee (Buyer) can't close the transaction then Builder may request that Assignor closes as per the terms of the original APS.
Builder will also stop communicating with Assignor and deal exclusively with Assignee once they have agreed to and executed assignment agreement. This makes it difficult for Assignor to get important updates. It's therefore important that Assignor Lawyer keeps in touch with both the Builder and Assignee Lawyer.
Tax implications (GST/HST) if it is determined that the primary intent of Assignor was to flip for profit (speak with a tax professional).
The Assignment Process, Continue Reading....
We have qualified buyers (both investors and end users) looking to purchase. Please drop us a line. We will take care of all the details involved in assigning your unit...Hassle free!!!!
We at Assignments Toronto understand that not everyone will have the available liquid funds to purchase an assignment. As such, a resale unit maybe your best option. Let us find you that perfect resale Condo. We are great negotiators!!!!
We are a team of Real Estate Professionals (Brokers, Bankers and Lawyers) with over 15 years of experience in Assignments, Pre-Construction and Resales, focused mainly in the Downtown Toronto Condo Market.
To simplify and facilitate seamless Real Estate transactions.
Our qualified team will guide you step by step through the entire process. Just sit back and relax...Let us handle the heavy lifting.
14 York St, Toronto ON, M5J 0B1
Monday - Friday: 9am - 9pm
Saturday: By appointment
Sunday: By appointment
Real Estate services provided by Kirk Cornwall; Broker, IPRO REALTY LTD., BROKERAGE