As per RECO (Real Estate Council of Ontario), an assignment is defined as 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 (whoever initially sold the property, usually the builder). The Assignee will generally assume all of the Assignor's duties and obligations under the original Agreement of Purchase and Sale. These rights and obligations are stated in the in the original Agreement of Purchase and Sale and include terms such as interest payments, taxes and maintenance fees during interim occupancy. Upon completion, the Assignee is granted the title to the real property and will incur all final closing costs.
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.
When done properly, assignments are legal and can be a useful tool for buyers and sellers. The seller's representative is expected to help the seller (the "assignor") weigh the pros and cons of giving the buyer (the "assignee") the ability to assign the property to another buyer. The buyer's representative is expected to help the buyer weigh the pros and cons of purchasing the property from the assignor.
Assignment sales can be very tricky. I have experience guiding and advising assignors and assignees on the pros and cons. I've successfully marketed, solicited offers, negotiated and closed assignment sales for sellers and buyers. Professional experience is very necessary in order to be guided to the best decision for you, whether by selling or buying the rights to a contract for a property.
Call me at 647-309-3378, or fill out the form below if you have any questions about assignments or are interested in exploring an assignment opportunity.
Call me at 647-309-3378, or fill out the form above if you have any questions.