An Assignment of an Agreement of Purchase and Sale

By
Real Estate Agent with RE/MAX Condos Plus Corporation, Brokerage

An Assignment of an Agreement of Purchase and Sale takes place when the original purchaser who bought from the builder assigns or sells the contract that was signed with the builder. 

 

The builder Agreements usually prohibit the purchaser to assign the Agreement. However, in the current Toronto condo market, there is more need for Assignments, as some investors want to sell, make a profit and move on. So, builders are agreeing to permit Assignments.  The builders charge a fee between $2500-$5000 to give this consent.

 

It is recommended that an Assignment Agreement contain two important clauses:

1.   the Assignment Agreement should have a clause with a condition requiring a review by the lawyer for the Assignee and also the Assignor. 

2.   the Assignment Agreement should be conditional on the builder granting permission for the Assignment.

 

 

A well drafted Assignment Agreement can work out well for both the Assignor and Assignee.  By assigning the Agreement with the builder prior to closing, the Assignor can avoid paying the builder's closing costs as well as Land Transfer Tax.  The Assignee can purchase a property that can be viewed ie. view the actual property rather than buying from the builder's plans.

Posted by

                                                          ------------------------------------------

Real Estate Agent serving clients for the Toronto Downtown and Toronto Waterfront Area.

Residential and Investment Properties.

Rosalind Nicholas, ACCA,SRS,REALTOR®

e-mail:   Rnicholas@trebnet.com     Tel: 416 918 1972

RE/MAX Condos Plus Corporation, Brokerage, Toronto, ON, Canada.

http://www.youtube.com/watch?v=PMuLzqLe72M&feature=youtu.be

 

 

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Ontario York Region Toronto
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Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Rosalind, have never had anyone do this, but know we have a paragraph in our contract about this! 

Mar 12, 2015 10:55 AM #1
Rainer
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Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

An Assignment is done where a purchaser bought from the builder and wants to sell before the property is 'Registered'. After Registration, it is a normal re-sale.

Mar 12, 2015 12:46 PM #2
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Rainer
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Rosalind Nicholas

Toronto Condo Real Estate Agent, Toronto ON
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