A majority of condominium assignments are made during the construction phase of the project. In view of that, the Assignee (New Buyer) will normally agree to pay the Assignor (Seller) the following on assignment of the Agreement to the Assignee (New Buyer):
The Buyer will reimburse the seller for the full amount of the deposit, which has already been paid to the Developer. These monies which are held in trust will become the New Buyer’s deposits as soon as the Assignment process is successfully completed.
The New Buyer will also pay any outstanding deposits that are due or may become due as per the Terms of the Agreement. The New Buyer understands that he is taking up the obligation to comply with all the terms of the Agreement he has acquired.
In accordance with the Assignment, the New Buyer will also pay the Seller the difference between the New Purchase Price and the Original Purchase Price. The seller’s gain on the assignment is represented by this amount.
Since the Condo Project is still in the construction phase and occupancy is not until later, there is nothing more to be paid until occupancy takes place.The Buyer (Assignee) will provide his Lawyers with the Assignment Agreement his Real Estate created, negotiated, and was ultimately accepted by both Buyers and Sellers.
The Buyer’s Lawyer will hold all monies due on the Assignment in trust. As soon as the Assignmentprocess is complete, these amounts will be paid by the Buyer’s Lawyer.
The Seller will provide his lawyers with the same Assignment Agreement. Lawyers for the seller will apply to the developer for approval of the change of buyer in the agreement.
Upon assignment, the seller will inform his lawyers of the Real Estate Agents and Commissions due. As soon as the Assignment is successful, the Seller’s Lawyer will receive all funds from the Buyer’s Lawyer and pay them to the Seller. Once the transaction is completed, payments will be made to the Seller and the Realtors.The process will be completed once the lawyers have approved and exchanged monies, making the New Buyer the Purchaser.
Caution.
It is critical for the Seller to understand how he will be responsible if the New Buyer cannot close the transaction at the Final Closing. This matter should be clarified by both the Seller’s and Buyer’s lawyers. It depends on the terminology used in the Builders Original Agreement whether the Original Buyer (Assignor) can still be held liable.
