Top 10 Questions Buyers Ask About Condo Assignment Sales in Toronto

Condo assignment sales are a unique way to enter the Toronto real estate market. For buyers, they present an opportunity to purchase a pre-construction unit from the original buyer before the condo is officially completed. However, the process can be confusing for first-time buyers.

To help, we’ve compiled the Top 10 most common questions buyers ask about condo assignment sales in Toronto and the GTA — with clear answers to guide you through.

1. What exactly is a condo assignment sale?

A condo assignment sale is when the original purchaser of a pre-construction condo sells their rights and obligations under the Agreement of Purchase and Sale (APS) to a new buyer. You’re essentially “stepping into the shoes” of the original buyer.

2. Why would someone sell their condo assignment?

Sellers may want to free up capital, avoid closing costs, or simply take profits from price appreciation. It doesn’t necessarily mean anything is wrong with the project.

3. Do assignments usually cost more or less than resale condos?

It depends on the market. In hot Toronto neighborhoods, assignment prices may be higher due to demand. In slower markets, you may find deals below current resale prices.

4. Can I get a mortgage for an assignment sale?

Yes, but not all lenders finance assignments. Many buyers use major Canadian banks or specialized mortgage brokers familiar with assignment transactions.

5. Do I have to pay HST on an assignment purchase?

Yes, most assignment purchases are subject to HST. The exact amount depends on whether you plan to live in the unit (end user) or rent it out (investor).

6. What are the risks of buying a condo assignment?

Risks include project delays, market fluctuations, or financing challenges. However, with proper due diligence and professional guidance, risks can be managed.

7. How much is the deposit for an assignment sale?

Typically, you’ll reimburse the seller for the deposits they’ve already paid to the builder, plus an additional deposit as outlined in the agreement.

8. Can I negotiate the price of an assignment?

Yes. Assignment prices are negotiable, just like resale condos. Market conditions in Toronto and the GTA will influence how much leverage you have.

9. Do all condo projects allow assignments?

No. Some builders restrict or prohibit assignments, while others allow them with a fee. Always confirm builder approval before moving forward.

10. Should I use a realtor when buying an assignment?

Absolutely. Assignment sales are more complex than standard resales. A realtor experienced in Toronto condo assignments can guide you through pricing, builder rules, tax implications, and negotiations.

Quick Summary

Buying a condo assignment in Toronto can be a great way to secure a pre-construction property without waiting years for a launch. But buyers often have questions about taxes, deposits, financing, and risks. By understanding the basics — and working with experienced professionals — you can confidently navigate the assignment market in Toronto and the GTA.