Ok You wish to sell your condo investment before the Developer registers the units!
This is called an Assignment sale and here is what you need to know to sell it properly !
What is an Assignment Sale?
An assignment is essentially a sale of a contract or right to acquire property. An assignment is a transaction whereby the original purchaser (the "Assignor") of a property sells, and thereby transfers, their interest and obligations under the original contract to a new purchaser (the "Assignee"). 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 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.
a) Assignor: An Assignor is the original buyer of the unit from the Builder/Developer.
b) Assignee: An Assignee is the buyer of the Agreement of Purchase and Sale from the Assignor.
We recently sold a unit in the Dundas Street West Bloor area steps from the Kipling Subway. The Assignee/Owner was investing and was looking to take advantage of the hot Condo market. Recent developments in the Six Points area of Islington City Centre are being proposed to redevelop the Plaza at Six Points, Sherway Gardens and Cloverdale Mall. All will increase the number of units tenfold,as well clean up the Dundas Street West strip. The recent bridge construction and reorganizing of the roads at the Six Points Junction hense the reordering of the points is making way for the future . Etobicoke's Condos, at the Waterfront and near the Subway are about to be increasing competitive when it comes to investment and hopefully with a heavy influx of Immigrants lucrative for all involved. Newer building complexes tend to feature smaller units in size buy heavier in amenities. These facts will make older buildings attractive to Downsizers who want space and newer to young first time buyers and immigrants for more affordability when entering the hot Etobicoke Real Estate market.
Can a Assignor market a unit on the MLS system?
It all depends on whether the developer permits advertising of the assignment. Refer to the original Agreement of Purchase and Sale to see if there are any prohibitions against listing the assignment or consult the Developer (Most Agreements of Purchase and Sale contain such a prohibition).
Is it necessary to get permission from the Developer/Seller allowing for Assignment?
Generally, Developers will not permit assignments without the Developer's consent, therefore every situation requires consultation with the Developer and your lawyer.
if you would like us to send you the Guideline to Condo Assignments give us a call and we will help you navigate your way to a successful sale of your investment.
Posted by Kathy Gordon