Condo Assignment Lawyer Toronto

A condo assignment refers to when the original purchaser ('assignor') sells their rights and obligations under a pre-construction agreement of purchase and sale to another ('assignee') before construction of the condo is complete. Unlike a standard resale transaction involving a physical property, an assignment consists of the sale of contractual rights, not actual title transfer. The assignee assumes the shoes of the original purchaser and completes the transaction directly with the builder on closing.

Refer to your Agreement of Purchase and Sale (APS) for an assignment provision. Most builder contracts contain assignment clauses stipulating whether assignments are allowed, any required builder consent, and the applicable assignment fee. If the terms are not clear, seek legal counsel from a lawyer to review the contract for you.

• The original APS with the builder
• An Agreement of Assignment to the new purchaser
• An agreement with the builder providing for the builder's consent to the assignment

The steps generally entail:

1. Obtaining builder consent
2. Preparation of the assignment agreement
3. Full property disclosure to the assignee
4. Closing with the assignee and builder

Builders frequently enforce assignment fees (e.g. $5,000-$15,000), administrative fees, and limitations (e.g. prohibiting advertising that the unit is for assignment/sale). These details are governed by your APS with the builder so review the contract carefully.

Our firm provides a predictable fixed fee (e.g. $999 + hst) for an assignment transaction. This gives peace of mind to both parties and covers all services such as contract review, builder consent paperwork and closing.

Most 'broken deals' can be attributed to:

• Missed timeline for builder consent
• Failure to disclose assignment restrictions in the APS
• Assignee financing troubles

The role of legal counsel is to oversee that contract terms are airtight, track deal timelines, and all required steps or deliverables by all parties are being met.

The assignee pays back your deposit as well as any price 'appreciation'.

Example: If your down payment was $50,000 and the unit's value has gone up $20,000, the assignee will pay you $70,000.

• Sellers (Assignors): Capital gains taxes on profits; HST considerations if unit deemed to be part of business transaction.
• Buyers (Assignees): Land transfer tax; potential HST if builder denies the new housing rebate.

Strict timelines for builder consent and closing are common on assignment deals. Best practices to avoid delays include starting paperwork early, hiring a lawyer specializing in assignment transactions, and arranging virtual signing appointments if needed.

Only with the builder's consent can changes be made to the original APS. Our job as legal counsel is to try to achieve any exceptions for our clients, but ultimately amendments are up to builder discretion.

We have a proactive approach to email/phone communication, upfront explanation of all risks, and offer a fully digital online platform for sharing documents.

• Transaction track record (e.g. 27,000+ home closings)
• Practice focus on real estate and assignment transactions
• Fixed cost guarantee

Yes, but lenders will classify the file as a 'complex transaction'. Get pre-approved and submit assignment documents with your application well in advance to avoid delays.

Some of the risks include:

• Builder refusal to consent to the assignment
• Tax liability
• Failed assignee financing

Our risk management strategy includes a thorough review of the builder contract, tax advice, and a contingency financing plan.

With dedicated availability to our clients, we are able to arrange for contract amendments, same-day signing (virtual or in person) and direct meetings with the builder to resolve an issue.

We offer a customized track record for each file with checklist reminders of requirements such as builder consent, document disclosure and taxes. Regular progress reports ensure nothing gets missed.

Legal strategies might include: negotiating a grace period in the assignment agreement, a deposit forfeiture for default damages, and claiming financial losses against the assignee in the event of a failed close.

Most assignment provisions in the APS allow for only one transaction. Assignment rights are not transferrable, and multiple flips generally breach the contract with the builder resulting in the original deal being cancelled.

If selling, your profits will just improve your income and debt ratios for financing purposes on a new home purchase. If buying, your assignment transaction does not qualify as a 'first home purchase' for any first-time buyer perks, credits or rebates.

Yes, we offer a predictable fixed fee (e.g. $999 + hst) for an assignment transaction, covering the full scope of legal work from contract review to builder consent and closing.