Toronto Real Estate Assignment
Buying on Assignment – The Industry Secret
Buying a property on assignment may be a viable alternative to purchasing new or resale, providing that the purchase is made under the right conditions.
An assignment is defined as “A transfer of rights in real property or personal property to another that gives the recipient—the assignee—the rights that the owner or holder of the property—the assignor —had prior to the transfer. An assignor essentially buys a ‘right’ to own a property that has not yet been registered, and assumes all of the duties and obligations of the original Agreement of Purchase and Sale. Closing for the assignment happens before property registration, and title is transferred to the assignee upon completion of the purchase.
Assignment purchases, namely new home assignments, are becoming increasing popular, due to certain inherent benefits. Buying on assignment can enable a buyer to to buy a new property without having to wait for construction to be completed, or to purchase in a sold-out development. Assignees may also avoid GST, provincial, and municipal land transfer tax while still retaining the 7 year Tarion Warranty attached to the new purchase. Care must be taken when buying on assignment, however, for as mentioned previously, the terms and conditions of the original purchase cannot be altered, and may or may not present an issue upon closing. Financing cannot be obtained until a specific time around closing, and any issue with the acquisition of financing may or may not result in the loss of the buyer’s deposit. Additionally, sellers selling on assignment often try and make a profit from the sale, and assignment prices may be equal to or above current market value.
Due to the notable increase in complexity with an assignment purchase, a consultation with, or the acquisition of, the services of a real estate professional is highly recommended.
For more information on our Assignment Purchase services, please click here or send us a message below.
To directly sign-up to buy your property via assignment, please click here and then send us a message.