Assigning a condo can be a daunting process. Very different from a regular sale as the condo isn’t officially owned yet. What you’re selling or buying is the right to own the property upon final closing. This makes the sale a bit more complicated and specialized. People choose to assign for many reasons.
Change in a life circumstance where they no longer need the unit, have another opportunity to invest in, or as an investment strategy - flipping the property without getting a mortgage. It gives an opportunity to sell the property before paying closing costs or qualifying for a mortgage which is helpful if you have multiple properties closing in the same year, wants to invest in something else, or no longer plan on moving in. Regardless of the reason, here are a few things to know if you’re thinking of assigning your condo assignment listings for sale in Brampton, Toronto, Mississauga, and Hamilton.
Fee to be paid to the developer if the unit is assigned
Development must be a certain percentage sold in order for the build to continue
Levies due on Final Closing for the broader area infrastructure
Fees charged by the Developer between occupancy and owning the unit
Units that Must be Sold by the Developer in order to Assign
Typically, developers will have a specific time range for when condo assignment is permitted. Most often this is closer to completion/occupancy. It is important to find out when the window is open and what the developer's requirements are for an assignment listing in Toronto to ensure you can assign in a favorable market. Our team has built strong relationships with many of the GTA's top Developers to help obtain the necessary approvals.
First things first you’ll want to make sure you have an assignment clause in your agreement. To be able to assign, you will need to have an assignment clause that permits you to assign, typically with some conditions.
Agreement of Purchase and Sale
Finishes & Upgrade Selections
Correspondence with the Developer
To know about assignments