Transferring all the rights and obligations of the Assignor (original buyer) of a bonafide Sales and Purchase Agreement with the current owner (usually the condo builder) to a new buyer, the Assignee, prior to the Assignor taking title at final closing. The Assignee “steps into the shoes” of the Assignor.

Generally, people buy assignments to acquire newly built units that are cost-effective for new buyers and meet their specific needs. As assignments cannot be advertised by conventional means on the Real Estate Board such as the TREB or in newspapers, fewer people find them or are interested in them. Less demand could result in a lower price. In spite of this, market value usually determines prices. Read more.

A developer’s interim closing is when the developer hands over the keys and enables the Purchaser to move into the condo before the building is registered with the city. The Purchaser is responsible for the interim occupancy fee payments during the interim occupancy period, according to the condominium act and the Agreement of Purchase & Sale. Read More …

During interim occupancy, you would be responsible for the monthly payments of interim occupancy fees. There is a condo maintenance fee, mortgage interest on the balance of the purchase price, and estimated monthly taxes. The Interim Occupancy period can last between three and eighteen months, which many people are unaware of.

Final Closing occurs after the building has been registered as a condominium corporation with the city. On this day, the unit is also transferred from the builder to the purchaser. Your lawyer ensures that the mortgage begins to take effect on this day. A contract of purchase and sale also specifies that the day of closing is the day on which all payments are due. In addition, Park Fees and developer levies are due.

The Buyer has to arrange a Pre-approved Mortgage with his Bank for the balance that will be due and payable after the deposits are paid. Despite the fact that construction may take 3 to 4 years to complete, the balance of the loan must be pre-approved by the bank. It is no doubt that the bank will want to see the accepted Assignment Agreement when an Assignment takes place in order to secure financing. At this point, the Bank will also investigate the creditworthiness of the Buyer.

Purchase cost is the price the New Buyer wants to pay for the property he is buying under Assignment. As a general rule, it is the Original Purchase Price plus an amount agreed upon by both the Original Buyer and the New Buyer.

The New Buyer deposits the difference in price with his lawyer in addition to the deposit already paid to the developer.

As soon as the Developer approves the Assignment, the New Buyers Lawyer transfers the funds to the Seller. The time frame for that is as agreed to in the Assignment Agreement.

Once the Assignment Agreement has been accepted and completed, you will also have to pay any outstanding or further deposits. At this point if the condo is in Interim Occupancy, you will also be responsible for monthly Interim Occupancy fees to the Developer. Read more …….

Once the condo is ready for occupancy, the city will issue an occupancy permit to the developer. The Developer then informs the Buyer and Buyer’s Lawyer of the occupancy date. The Lawyer for the Buyer will receive the Interim Closing Statement from the Developer at this time – the Buyer then gets Certified Cheques for the monies due to the Developer and Lawyer for the Interim closing costs. As part of the interim payments, Buyers will also be required to submit postdated checks to the Developers’ Attorneys.

After booking the elevators with the Condo Manager or the Concierge, the Buyer arranges his moving dates and times.

Yes, no matter what you do in real estate, you should always have legal representation. But find a lawyer who is knowledgeable about newly constructed condos and homes as well as assignments.

As far as I know, there is no magic formula. The first thing you should do is do your homework. Find out why you are investing. You need to research the location and all of the upcoming developments in the area of your choice.

This what we do best. Let us take care of that for you. Using a Zoom Meeting, we’ll determine your needs and then set up an easy and reliable solution to get you the unit you want without charging you any fees. We will look after your long-term interests and educate you about the Assignment process and negotiate the most advantageous price on your behalf. 

Yes, absolutely. As soon as all the conditions in the Assignment Agreement are met and the money has changed hands, the Assignment Agreement becomes binding. The Assignment Agreement and the Original Agreement with the developer are in good standing and legally binding.

This is why it is essential to have a lawyer review all of your agreements. We can help you start the process now.

Yes. Your lawyer holds your deposit in trust for you. Your deposit will be held in trust until you receive the developer’s consent. Upon Assignment, you will then inherit the original deposit placed with the developer’s solicitor. All deposits with the builder are deposited in trust by the developer’s lawyer.

No. Not after it is accepted by all parties, and all conditions have been fulfilled.

It is the seller’s responsibility to pay his own legal costs, and the buyer’s responsibility to shoulder his own legal costs. All real estate commissions are paid by the seller. In most cases, the seller’s agent and the buyer’s agent share this amount equally.

Assignment costs charged by the Developer are normally paid by the Seller or as agreed between the parties.

Once the assignment is finalized, you have become the owner of this unit in every way. Original purchasers of the units are no longer of concern to the developer. The Developer may pursue claims against the Original Buyer if the New Buyer fails to fulfill the terms of the Agreement.