ASSIGNMENT PLUS
Introducing Plus Sales Group - your one-stop destination for all things real estate! We have you covered from buying/ selling/ leasing/ pre-construction/ resale & condo assignment deals. We provide a convenient platform to access all areas of real estate. With our extensive experience and knowledge, coupled with our dedicated customer support, we ensure a seamless experience from beginning to end. Plus Sales Group is here for all your real estate needs.
WHAT IS AN ASSIGNMENT LISTING?
An Assignment sale occurs when a buyer purchases a property, typically a condo, condo townhouse, or house, during its pre-construction phase and then assigns or transfers the purchase rights to another party before the property is completed. The original buyer essentially sells the contract for the property to someone else before they take possession.
Not all builder contracts allow an assignment; click here to get in touch with us so we can establish if and when you are allowed to sign your contract.
TAX IMPLICATIONS OF AN ASSIGNMENT LISTING IN ONTARIO
First and foremost, it's crucial to rely on a certified accountant or lawyer for trustworthy tax advice in Toronto. Here are some items to keep in mind: As an Assignee (buyer of the Assignment) you are assuming the existing contract between the Assignor (seller of the Assignment) and thereby responsible for the pre-construction occupancy fees, builder's closing costs, land transfer tax, HST/GST rebate and legal fees to close the transaction. As an Assignor, realizing a profit from an assignment will entail fulfilling tax obligations, and conversely, any incurred losses can be written off.
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For more information, contact us.
WHAT TO LOOK OUT FOR WHEN BUYING AN ASSIGNMENT?
Payment Deposit
As an assignee, you'll need to pay the assignor the entire deposit amount upfront.
Realtor Charges
If a Realtor is involved, a commission may be payable for sourcing or negotiating assignments.
Paying Above the Original Price
Assignees often seek a profit when assigning their contract, resulting in an agreed-upon price higher than the original purchase price.
Assignment Fees
Developers typically charge assignment fees, ranging from $1,000 to 5%, with decisions on cost-sharing between assignor and assignee.
Legal Expenses
Legal fees may arise due to the complexity of assignments; it's advisable to have a lawyer review agreements.
Check-out our Active Listings
We currently have over 20 active assignment listings in the GTA. Click here to view them.
BUYING AN ASSIGNMENT CONDO
Advantages of buying an Assignment Condo:
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Quick Access to New Condos: Acquire a brand-new condo without enduring the lengthy construction period associated with traditional developments.
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Abundance of Inventory: In today's market, there are a variety of options available, providing opportunities for competitive pricing.
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Assurance Against Cancellations: Assignments are usually allowed when the building is well underway, reducing the risk of project cancellations.
Things to consider as a Buyer of an Assignment Condo:
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High Upfront Cash Requirement: Assignees typically need to invest 30% to 40% of the purchase price upfront.
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Delayed Mortgage Approval: While a mortgage approval is required at the time of purchase, the final closing, often months later is when the mortgage is finalized. Changes in financial circumstances during this period can pose challenges in securing a mortgage.
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Single Assignment Sale: Generally, only one assignment sale is permitted, restricting the ability to resell the condo until the final closing and building registration.
WAYS TO MARKET YOU ASSIGNMENT LISTING
Targeted Email Campaigns: Execute strategic email campaigns to reach potential buyers interested in assignment listings.
Platform-Specific Advertising: Utilize exclusive platforms dedicated to assignment listings for effective and specialized advertising.
Social Media Promotions: Leverage the power of social media platforms to promote assignment listings, reaching a broad audience.
Non-MLS Marketing: While assignment listings cannot be added on MLS, we employ alternative methods to maximize visibility.
HOW DOES THE ASSIGNMENT PROCESS WORK?
An assignment sale involves transferring the right to purchase a pre-construction condo through the sale of the contract, as the unit is yet to be registered.
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When buying a pre-construction unit, an assignment clause in the contract allows the option to sell the right before construction completion.
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The Assignee (buyer) isn't purchasing directly from the Assignor (original buyer) but acquiring the right to buy from a third party, typically the builder.
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The Assignor transfers their rights and interests in the original agreement, including the deposit.
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The Assignee assumes all obligations under the original agreement until the building is registered.
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Upon completion and registration, ownership transfers to the buyer.
WHY IS AN EXPERIENCED AGENT CRUCIAL FOR REPRESENTATION OF AN ASSIGNMENT SALE?
Achieving a successful assignment sale extends beyond effective marketing and protective negotiations—it demands a realtor with expertise in market knowledge and analysis, a robust network, honest advice, and strong negotiation tactics.
Ensure they have a successful track record and come recommended through referrals. By emphasizing these qualities, you set the stage for a successful and stress-free real estate transaction.
Call us today so we can walk you through our marketing strategies for your assignment.