Assignment of Property
An assignment of property occurs when a buyer sells their rights under an APS to another buyer before closing. This is common in pre-construction condo purchases.
Legal Support for Assignments
- Review of Original APS: We check whether the builder or seller allows assignments and under what conditions.
- Drafting or Reviewing the Assignment Agreement: We ensure the agreement protects your interests and complies with Ontario law.
- Tax Guidance: We explain potential HST obligations and other tax considerations.
- Coordinating Closing: We work with all parties to ensure the transaction is completed correctly and on time.
When an Assignment Makes Sense
Assignments are common with pre-construction homes. A buyer who can no longer close, or who wants to sell before closing, assigns the purchase agreement to a new buyer. Many builders allow assignments only with their written consent, and some charge a fee or restrict them, so the first step is to read what the original agreement says.
Points to Review
- Whether the builder's consent is needed and what the builder may charge.
- What you have paid so far in deposits and how the deposits are credited between you and the new buyer.
- Whether the new buyer can obtain financing and close on the builder's date.
- The tax consequences for each side, which can include HST and income tax. Your accountant should look at these.