In a standard real estate transaction, there’s a buyer and a seller.During an assignment sale, these two participants are known as the assignor (the seller) and the assignee (the buyer).If you’re an investor, you might decide to buy a pre-con unit for the express purpose of selling it before completion.Tags: Essay Questions About The RavenCollege Persuasive EssayCollege Application Essay EditorsWhat Is Creative Writing For EntertainmentResearch Term Thesis StatementRespiratory System Essay
Since the unit doesn’t technically exist yet (and may not be completed), what you’re actually selling is the agreement of purchase and sale.
Simply put, your buyer is purchasing the right to own the condo when it’s built.
Things get more complicated with the introduction of another party (the developer, who has to agree to the transaction).
I should note that some developers forbid assignment sales. As an assignor, you also need to find the right assignee—someone who can afford the downpayment that you’ve paid the developer.
Along with the rise of the Vancouver’s Pre Sale Condo market, the market for Pre Sale Condo Assignments has been a huge money maker for investors in Vancouver Real Estate.
A Pre Sale Condo Assignment is when the original Buyer of a Pre Sale Condo sells their rights to a completed condo to another Buyer before that condo is completed.You might get a new job, decide to move in with a spouse, or simply find another living space that meets your needs.In these scenarios, you might want to sell your condo.They must also be able to pay the difference between the asking price you initially paid and the current price.This can be structured in different ways if mutually agreed, so that the assignee pays the deposit paid to the developer at the time of signing, but pays the profit portion on the final closing.That said, the few years that it often takes for a project to be completed is no short period of time.No matter how excited you are when you put pen to contract, a major life transition could occur before you reach your occupancy date.There are many phases of construction and approval involved.As a buyer, you know that the end result will be worth it.I’m talking about buying and then selling a pre-con unit. The short answer is yes—these transactions are known as “assignment sales.” But there are a few things you should know if you’re considering selling on assignment.We’ve established that you can, in fact, sell your pre-construction condo.