Toronto’s real estate market is full of unique opportunities, and assignment sales are one of them. Think of it as the “Uno Reverse” of real estate—you purchase a pre-construction property, but before closing, you transfer the contract to someone else. No moving in, no unpacking—just a contract handoff (with a few important steps in between). But how does it actually work? Let’s break it down. What’s an Assignment Sale? An assignment sale happens when the original buyer (assignor) of a pre-construction property sells their purchase contract to a new buyer (assignee) before taking possession. Instead of selling the physical unit, they are transferring the agreement they signed with the builder. The assignee then assumes all obligations under that contract and will finalize the purchase directly with the builder upon completion. Why Do People Sell Assignments? Sellers may choose to assign their contract for various reasons, such as: 🔹 Change in Plans – Life circumstances can change, affecting their ability to move forward with the property. 🔹 Builder Policies – Some builders allow assignments, giving buyers flexibility before closing. 🔹 Investment Strategy – Some buyers purchase pre-construction with the option of assigning if needed. Why Would Someone Buy an Assignment? Assignment buyers often see benefits such as: ✔ New Construction Without the Initial Wait – Instead of buying directly from a new project launch, an assignee steps into a contract for a unit that’s closer to completion. ✔ Original Contract Terms – The terms of the original agreement, including builder incentives or upgrades, may still apply. ✔ A Brand-New Property – Assignment sales involve pre-construction units, meaning the buyer is getting a home that has never been lived in. The Fine Print: Things to Know Before Assigning 📝 Builder Approval is Required – Most builders have policies regarding assignment sales, including approval processes and potential fees. 📝 Marketing Restrictions May Apply – Some builders do not allow assignments to be listed on MLS. Alternative marketing strategies may be needed. 📝 Legal Review is Essential – Assignment agreements involve specific terms and conditions. Consulting a real estate lawyer is recommended to ensure a smooth transaction. Final Thoughts Assignment sales provide flexibility in Toronto’s pre-construction market, but they require careful planning. Whether assigning a contract or purchasing one, understanding the builder’s policies and legal requirements is key. Looking for assignment listings in Toronto? AssignmentPlus.ca  connects buyers and sellers with available opportunities.

Sellers of pre-construction properties have two main options: assignment sale or resale. Each method has its own process and considerations. Understanding the differences can help sellers choose the right approach based on their situation. What is an Assignment Sale? An assignment sale is when the original buyer of a pre-construction property transfers their purchase contract to a new buyer before taking possession. The new buyer assumes the agreement and will close directly with the builder. Considerations for Sellers in an Assignment Sale ✔ Avoids Taking Possession  – Since the property is not yet completed, the seller does not take ownership. ✔ Builder Policies Apply  – Builders often have specific rules about assignment sales, including approval requirements and potential fees. ✔ Marketing Restrictions  – Some builders do not allow assignments to be listed on MLS, limiting exposure. ✔ Limited Buyer Pool  – Not all buyers are familiar with assignment sales, which can affect demand. What is a Resale? A resale  occurs when a completed and registered property is listed on the open market and sold to a new buyer. Considerations for Sellers in a Resale ✔ Full Ownership Required  – The seller must take possession and complete the closing before listing the property. ✔ Wider Market Reach  – Resale properties can be marketed publicly, including on MLS. ✔ Standard Selling Process  – Buyers can use mortgage financing, making the process more familiar to traditional homebuyers. ✔ Carrying Costs Apply  – Until the property is sold, the seller is responsible for any applicable costs such as maintenance fees and taxes. Which Option is Better for Sellers? Assignment Sale May Be Suitable If:  The seller does not want to take possession and the builder allows assignments. Resale May Be Suitable If:  The seller prefers a wider audience and standard marketing channels. Final Thoughts Both assignment sales and resales have their own processes and considerations. Sellers should review their agreement and consult a professional to determine the best option based on their needs.

Selling a pre-construction condo before closing is known as an assignment sale. This process allows the original buyer (assignor) to transfer their contract to a new buyer (assignee) before taking possession of the unit. If you're looking to sell your pre-construction condo before closing, here’s a step-by-step guide to help you navigate the process. 1. Check Your Purchase Agreement Before listing your condo for an assignment sale, review your Agreement of Purchase and Sale (APS) to confirm whether assignment sales are allowed. Some builders place restrictions or charge assignment fees, which should be considered when deciding to sell. 2. Get Builder Approval Most developers require written approval before you can assign your contract. This may involve: Paying an assignment fee (varies by developer). Completing forms and paperwork. Adhering to any marketing restrictions (e.g., some developers don’t allow public advertising). 3. Determine Your Selling Price To set a competitive price: Consider your original purchase price plus any deposits paid. Check resale prices in the area. 4. List Your Assignment Sale Since many builders restrict MLS listings for assignment sales, your options include: Working with a Realtor : Realtors experienced in assignment sales can market your unit through their network. Private Listings : Websites that specialize in assignment sales, such as AssignmentPlus.ca , can connect you with potential buyers. Word of Mouth & Investor Groups : Many investors actively seek assignment opportunities. 5. Market to the Right Buyers Assignment sales are typically appealing to: End-users : Buyers looking for a move-in-ready unit. Investors : Buyers seeking to enter the market at an earlier stage before occupancy. Other Pre-Construction Buyers : Those who missed out on initial sales but still want a unit in the project. 6. Negotiate the Terms Once you find a buyer, negotiate key details, including: The assignment price. Who will cover builder assignment fees and closing costs. Any adjustments, such as development levies or HST obligations. 7. Work with a Lawyer Assignment sales involve legal complexities, so having a real estate lawyer  who understands pre-construction contracts is crucial. They will: Ensure all terms comply with the builder’s requirements. Draft the assignment agreement. Advise on potential tax implications, including HST. 8. Close the Assignment Sale Once the contract is assigned, the assignee takes over the remaining payments and obligations. The deal officially closes when the condo is registered, and the builder transfers title to the new buyer. Key Considerations Before Selling Time Restrictions : Some builders allow assignment sales only after a certain percentage of the project is sold. HST & Tax Implications : The assignment may be subject to HST and capital gains tax. Consult a tax professional. Market Conditions : The demand for assignment sales can vary based on real estate trends and interest rates. Final Thoughts Selling a pre-construction condo before closing can be a good way to exit an investment, but it requires careful planning and legal considerations. Understanding your builder’s rules, pricing your unit correctly, and marketing to the right buyers can help ensure a smooth transaction. If you need assistance finding buyers for your assignment sale, platforms like AssignmentPlus.ca  can connect you with interested investors and homebuyers.