Selling Your Condo: Condominium Assignment Basic Guidelines

Many purchasers of new condominiums intend to sell their unit prior to closing to save monthly carrying charges and to take advantage of what they feel may be a premium market for selling.  What happens though, when you decide to sell your condominium and the building isn’t completed and hasn’t been registered with the City yet? I have had many clients that have asked me to help clarify what can truly be a confusing process and it is important to know from the beginning that some builders have complete restrictions on assignments before closing, but most allow them to occur for a fee.  Most of the information can be found in the original Agreement of Purchase and Sale, and certainly contacting a Realtor who is versed in assignments or your Real Estate Lawyer should be at the start of the process.

To help you understand some of the basics of condominium assignments I have included some information below, that I hope will give you an idea of some of the considerations you should be aware of when you start in on the process of assigning your unit.



Assignor: The assignor is the original buyer of the unit from the Builder/Developer (the person selling the unit).

Assignee: The assignee is the buyer of the Agreement of Purchase and Sale from the Assignor.

Assignor Guidelines:

  1. Is the original Agreement of Purchase and Sale assignable?
  2. Are there any restrictions on marketing the Assignment?  (such as, are you allowed to list via MLS, Exclusive or Privately)
  3. The Builder may require the Assignor and Assignee to sign the Builder’s consent form or the Builder’s Assignment Agreement.  (The Assignee may be required to prove that they can obtain a mortgage).
  4. The Assignor usually agrees to obtain Builder consent and pay consent fee (may be the Assignee).
  5. The Assignee may be required to pay the Assignor an amount equal to the deposits (and possibly the interest on the deposits) already paid to the Builder at time of occupancy.
  6. Provide the Assignee with original Agreement of Purchase and Sale and all related documents.
  7. The Assignor is not usually released from their obligation to the Builder if the Assignee does not complete the purchase.
  8. The Assignor is responsible for the following costs: legal fees & disbursements, and builder consent fees.


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