Victoria Boscariol, Toronto Real Estate agent

What is a Condo Assignment Sale?
The Advantages Of Buying A New Condo Unit In Toronto By Assignment

Toronto Condo Assignment Purchases From Builder To Buyers Victoria Boscariol Chestnut Park Real EstatePaul is a single junior lawyer and works in downtown Toronto.  He notices that across the street from his office a new condominium project is planned and he visits the sales office. Looking through the floor plans, he finds his perfect bachelor pad - a 1 bedroom plus den with balcony and proceeds to buy the unit by entering into an Agreement of Purchase and Sale with the Builder.

Purchasing a condo unit off plans from a builder is different than purchasing a resale condo unit.  A resale condominium is already in existence and a Buyer takes ownership of a unit through the Land Registry System where on the day of closing the Buyer's name is registered as owner of the unit.

Because Paul's unit is not built yet and therefore not registered on Land Registry, Paul is essentially buying the right to own a condo unit in this particular development to be completed and registered in the future.

Two years go by and Paul is now married with a baby on the way. The condo development he purchased into has made great progress and completion of the construction is only another year away. However, Paul's plans have now changed as he is looking to buy a house.  He realizes his bachelor pad condo purchase will no longer be suitable for his future lifestyle.  He decides to sell or "assign" his rights to the Agreement of Purchase & Sale he entered into with the Builder.

Simply put, Paul as the original Buyer is selling the contract to another who will become the new Buyer standing in the place of Paul as the original Buyer.

Advantages of Condo Assignments For Buyers

While purchasing a condo by assignment is a more complicated process than purchasing a resale condo, it does allow a buyer to get into a brand new unit without having to wait several years for construction to be completed.  Buyers of assignment condos may also have the opportunity to get a desired floor plan that may otherwise be sold out by the builder.

Buyers of assignments also save money as prices for condo assignment sales are often 5-10% less than the builder's current selling prices for comparable units.  If the original buyer's Agreement of Purchase & Sale was executed prior to December 31, 2007, it is exempt from the Toronto Land Transfer Tax and this benefit would also be passed onto the second buyer saving them thousands of dollars.

Find out more about buying Toronto condos and TAXES

Buying A Toronto Condo? Find out how much Land Transfer Tax you will have to pay

See MLS LISTINGS for Downtown Toronto condos FOR SALE

Buying a NEW CONSTRUCTION condo in Toronto? What you need to know before you visit the sales office

New Or Resale?  Buying & Investment Opportunities In Yorkville & Toronto's Condo Market

Investing in New & Pre-construction Condos in Yorkville & Downtown Toronto? How to get the Maximum Return On Investment

Toronto Condo Checklist What you need to ask BEFORE you buy

Renting Vs Buying A Toronto Condo. Which is the better option?

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Moving On? Divorce & Buying Or Selling Your Yorkville Condo

Thinking about buying a Toronto condo?  Have questions about the buying process Request A Free Condo Buying Consultation

Victoria Boscariol is a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States. 

 

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