1. Review the assignment clause at the time of the contract
2. Property listing
Assignment sales involve many specialized clauses that need to be included in the offer contract, and there are many interests to represent on the part of the seller and the buyer, which makes it very different from a regular real estate sale. Therefore, it is crucial to select a real estate agent with experience in assignment sales.
Assignments cannot be listed on MLS, so it is difficult to reach potential buyers through traditional advertising methods such as newspapers or magazines. Therefore, the pool of potential buyers is quite limited. Therefore, the pool of potential buyers is quite limited.
At MyBestHome, we have a well-established network of realtors throughout Toronto, as well as the ability to share information quickly with our many VIP members over our 17 years of service. By providing timely information to potential buyers, we can help ensure successful assignment sales that benefit both sellers and buyers.
The original purchase agreement and disclosure statement (booklet or USB/CD)
Evidence of compliance (receipts for deposits and any other payments from the builder’s lawyer’s office)
Completed color selection documents
Upgrades and extras order forms, and payment confirmation
Notices from the builder (e.g. regarding the expected move-in date)
3. Offer Negotiation Process
For example, if the initial pre-sale price was $500,000 and the buyer has already paid 20% or $100,000, then if the property is sold for $600,000 in the Assignment market, the seller will receive the $100,000 that the buyer has already paid, plus a premium of $100,000 reflecting the difference between the pre-sale and Assignment prices. The seller will receive the total amount of $200,000 on the day when the developer approves the sale, and the buyer will receive the right to transfer the ownership of the property. The buyer will pay the remaining $400,000 at a later date, which may be at the time of occupancy or registration.
It is recommended that the seller’s and buyer’s lawyers be different.
After reviewing each other’s lawyers, it is advisable to include approval conditions such as mortgage approval and developer approval in the Offer.