Buy property under Assignment- what is condo assignment , benefit for assignor and assignee
What is an assignment?(According to RECO)
An assignment is a sales transaction where the original buyer of a property (the “assignor”) allows another buyer (the “assignee”) to take over the buyer’s rights and obligations of the Agreement of Purchase and Sale, before the original buyer closes on the property (that is, where they take possession of the property). The assignee is the one who ultimately completes the deal with the seller.
In other words, an assignment clause allows the buyer of a home to sell the place before they take possession of it.
In Ontario, assignments are more common in pre-built homes and condos than on re-sale properties, but they are possible on any type of trade.
Is assignment sale Legal?
Yes, it is 100% legal transaction as long as you following all the steps properly. Assignment Sale is popular now, especially in pre-construction Condo Market .
Why Assignment Happen
Considering a pre-construction project takes 4-6 years to build up , for the orignal buyer ( Assignor ) , sometimes financial situation changed or the intention to buy the property changes.
For example, some one to buy to move in , however, they have to move to other cities or even countries for the new job or get married to move to other city .
Someone buy for kids , however they go to other university in different city .
Who will involve in an Assignment Sale
Assignment sale involve many parties than resale , as the unit still belong to the orignal Vendor ( builder)
Vendor – Builder –who has the final decision power
Assignor- the original buyer who intend to sell it now
Assignee- The new buyer who want to buy under assignment
Usually , 3 parties lawyers also involve .