What is a condo assignment?

What is a condo assignment?

If you have read our article on pre-construction condos, you surely have noticed that there are many steps to do so. And in these steps, before the end of the constructions, the transactions and the contracts are launched.

At a certain level, the contract becomes firm and the buyer needs to commit to pay the amounts the agreed to pay to the constructor. But this does not mean that he cannot anymore withdraw from the condo for any reason. It may happen that he found a condo that meets his needs better than the one he chose, or he thinks it is better to invest in another on or just simply, he changed his mind about having a new condo.

In that case, it is not a lost cause. He can proceed to what is called a condo assignment. Yes, an assignment.

Yes you assign your condo

It it important to note that the buyer (the first buyer) already signed, and paid a downpayment that the constructor has already cashed and he committed to pay the rest of the price. But for a reason or another, he had to change his mind. The assignment, as it is, allows the buyer to sell the condo before the completion of the construction. Yes, it is possible.

The difference between an assignment and a resale is that the assignment happens before the completion of the construction and that the buyer (former buyer) has not totally acquired his unit and he does not yet have the property, whereas for the resale, the construction was already completed and the buyer owns it at that time.

For the assignment, the buyer sells the unit to another buyer, with the rights and obligations that are tied to it, towards the constructor for this unit. So here, we are talking about assignment, it is not a resale contract.

We must also note that there are many benefits in the condo assignment transaction whether for the buyer who wants to assigns his unit or for the new buyer who wants to acquire the rights and obligations tied to the unit.

Benefits for the original buyer:

  • he has the opportunity to sell before the end of the contract
  • he will avoid the contract costs
  • he won’t pay the occupation costs anymore
  • he won’t need to ensure the mortgage
  • he gets back the amount that he has paid

The benefits for the new buyer:

  • he buys a new condo that has never been lived before
  • Your waiting time is much less (pre-construction condos generally take 1 to 5 years before the completion
  • he will still benefit the Tarion warranty
  • there are VIP premium on the contract
  • he has stronger negotiation power

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You can look up here in order to find condos that suit your needs or contact us for more information and we will assist you.

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