How to Spot a Great Condo Assignment Deal: Tips for Buyers

Condo assignment sales are gaining popularity in Ontario as more buyers look for opportunities to purchase pre-construction condos without waiting years for completion. But while assignment deals can be lucrative, not every listing is a winner. Spotting the difference between a smart investment and a risky one requires careful due diligence. Here’s how buyers can identify a great condo assignment deal in today’s competitive market.

1. Understand What an Assignment Really Is

• A condo assignment happens when the original buyer (the assignor) sells their rights to a pre-construction contract before the project is completed.

• The new buyer (the assignee) steps into the contract and assumes all obligations, including final closing costs.

• Knowing this upfront helps you evaluate whether the deal aligns with your financial goals.

  
  

2. Look Beyond the Sticker Price

• Some assignment sales are marketed as “below market value,” but additional fees like assignment charges, builder levies, and HST can change the math.

• Compare the total cost—including deposits, closing fees, and upgrades—with resale and pre-construction options in the same area.

• A good deal is one where the long-term appreciation outweighs the upfront costs.

  
  

3. Review the Condo’s Financial Health & Bylaws

• Ask for access to condo bylaws and status certificates to understand restrictions, reserve funds, and monthly fees.

• Look for red flags like special assessments, poor reserve funding, or bylaws that may limit rentals.

• A financially stable condo corporation means fewer surprises down the road.

  
  

4. Evaluate Location & Market Trends

• Location is still the number one driver of condo value. Focus on areas near transit, universities, or growing employment hubs.

• Research market trends in that neighborhood—are prices climbing, flat, or falling?

• The best assignment deals are in neighborhoods with strong demand and limited supply.

  
  

5. Get Legal & Financial Guidance Early

• An experienced real estate lawyer can clarify builder approval requirements and tax implications.

• A mortgage advisor can help confirm financing since some lenders are cautious with assignments.

• With professional guidance, you’ll avoid common pitfalls and ensure the deal truly benefits you.

  
  

Final Summary

A great condo assignment deal isn’t just about getting in at a lower price—it’s about securing a property with long-term growth potential, manageable costs, and minimal legal risks. By analyzing bylaws, understanding total expenses, and working with professionals, buyers can confidently spot deals that deliver real value.

Frequently Asked Questions

1. What is the risk of buying an assignment? 

Risks include builder disapproval, unexpected fees, financing challenges, or changes in market value before closing.

2. Where to find condo bylaws in Ontario?

Condo bylaws are available through the condo corporation’s management office or by requesting a status certificate.

3. Are assignment sales cheaper?

Not always. Some offer savings compared to resale prices, but extra fees and taxes can offset the discount. Careful calculations are key.

4. What does condo assignment mean?

A condo assignment means the original purchaser of a pre-construction unit sells their rights and obligations in the contract to a new buyer before the unit is built or registered.

5. How does an assignment work?

The assignor and assignee sign an agreement, the builder provides approval, and the assignee takes over the contract—assuming deposits, payments, and closing responsibilities.