What’s an assignment?
An assignment is when a Seller sells their interest in a property before they take possession – in other words, they sell the contract they have with the Builder to a new purchaser. When a Seller assigns a property, they aren’t actually selling the property (because they don’t own it yet) – they are selling their promise to purchase it, along with the rights and obligations of their Agreement of Purchase and Sale contract. The Buyer of an assignment is essentially stepping into the shoes of the original purchaser.
The original purchaser is considered to be the Assignor; the new Buyer is the Assignee. The Assignee is the one who will complete the final sale with the Builder.
So how the heck can I find a Buyer?
I am a REALTOR who specializes in assignment sales and I have a database of potential Buyers and investors looking for assignments sales. If you want to be connected with a Real Estate Broker who knows the ins and outs of assignment sales, get in touch with me at 905-512-1846…I know some of the best assignment deals in the GTA.
Which is Better? Assignments vs. Resale
I often get calls from people who are debating whether they should assign a home they bought, or close the purchase and then sell it as a typical resale home.
Pros of Assigning vs. Waiting
- Get your deposit back and lock in your profit sooner
- Avoid paying land transfer taxes
- Avoid paying HST
- Maximize your return if prices are declining and you expect them to continue to decline
- Lifestyle – sometimes it just makes sense to move on
Cons of Assigning vs. Waiting
- The pool of Buyers for assignment sales is much smaller than the pool of Buyers for resale properties, which could result in the sale taking a long time, getting a lower price than you would if you waited, or both.
- Marketing restrictions are annoying and reduce the chances of finding a Buyer
- Price – What is market value? If the neighbourhood is brand new and there haven’t been any resales yet, it can be difficult to determine how much the property is worth now. Assignment sales tend to sell for less than resale.
- Assignment sales can be complicated, so you want to make sure that you’re working with an agent who is experienced with assignment sales, and a good lawyer.
Still thinking of assignment your condo or home? Get in touch with me at 905-512-1846 and I’ll walk you through the process.