Assignments: Risky or Rewarding?

With all the developments appearing across the lower mainland people are lining up for Pre-Sales. With the rising prices this is a great alternative for people as long as they are willing to wait, most often for years! If you have been one of those people lining up for a Pre-Sale, you know that it’s not easy to just give your money and lock in a unit. That’s why assignments have also become popular, the Seller makes a profit and the Buyer gets into a brand new building. It can be risky or a win-win situation as long as everything is done properly.


Here’s what you need to know about being the Assignor (Seller):

  • If the Buyer is unable to complete, the Assignor responsible for completing the transaction.
  • Is Assignment of a pre-sale contract permitted under the purchase contract?
  • Does the Developer have an Assignment Fee?


Here’s what you need to know about being the Assignee (Buyer):  

  • Review the Disclosure Statement and associated documents in great detail.
  • Will the deposit and “lift” be paid by the assignor?
  • If possible, release the money to the assignor only after the building is complete and the title has been transferred.
  • If there is a breach in the assignment agreement or pre-sale contract, what happens?
  • Did you know most lenders will not hold a rate especially on long completion dates or they will revaluate and potential not reapprove you. RBC is the only bank that will hold your rate until completion.


I recommend you have your real estate agent and lawyer review all the documents thoroughly.




No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.