WHAT IS AN ASSIGNMENT?

What is an assignment

BUYING A CONDO BY WAY OF ASSIGNMENT

Most people who buy a condo take ownership through the Land Registry System. Just before the day of closing, you transfer money to your lawyer and if you need additional funds via a mortgage, your lawyer will register your ownership of the property and the interest of the mortgage lender.

An Assignment means that you are buying a ‘right’ to own a condo that is not in the Land Registry System. Usually the condo has not been built or it is not ready for occupancy and the building has not been registered. This ‘right’ is just a paper transaction and not the transfer of the actual property. The closing of the Assignment occurs BEFORE the condo is registered. The individual who buys the ‘right’ will eventually close and register their ownership of the condo at some later date.

The number of Assignment transactions is growing rapidly. For sellers who bought a new condo from plans several years earlier and whose plans have changed, this is an opportunity to sell before they have to get a mortgage and incur additional closing costs such as that dreaded, double Land Transfer Tax. For buyers who want a brand new condo without having to wait years for construction to finish, or who can not find what they want in the resale market, it represents a lot more choice. Most Assignments are sold on an ‘Exclusive’ basis. They are also more complicated than a regular sale because a mortgage can not be obtained on the closing of the Assignment, and will need to be postponed until the day of registration. Other issues such as occupancy, reimbursement of the seller’s deposits and more must be taken into account.

You need a Realtor that is trained in finding and drawing up the Offer for Assignments. At RE/MAX Condos Plus we have biggest Company site for selling Assignments and we have the most Realtors who are trained in doing these transactions. So if you want to buy or sell an Assignment then you have come to the right web site! We also have the best trained Realtors with the most expertise in Assignments!


Looking to Purchase an Assignment?

Search Assignment Sales

Want to Impress Your Friends with Your Real Estate Market Knowledge?

Sign up to Receive our Monthly Market Report

Receive monthly market updates on Toronto's sales and rental market as well as an in-depth look at every area in Toronto!

 

* indicates required

  • Market Report September-October 2016

    Sales Commentary August sales on the Toronto Real Estate Board were up by 23% over August of last year. But to make an even bigger statement, August sales were only 1% lower than July. Last year the August to July drop was 19%! Also August sales in 2016 are higher than for sales in any Fall month for 2015. However, there is a double edge sword. Active Listings in August were 37% lower than for the same month last year, and new listings for August were down by 1%. This can only mean continued rising prices in the short term ...

  • Elements of Negotiations

    Most of you have heard the phrase, “The one who speaks first loses.” Does this mean an equally matched negotiation results in two salespeople locked in a room staring at each other for hours on end? There is truth to silence as an ally but there is more to consider than this alone. So, what is the most important factor in negotiations? Communication can either be verbal or nonverbal. There has to be a statement of terms in any negotiation. Choice of words, pace, tone, medium and non-verbal clues such as body language all help deliver those terms. It’s important ...

  • Time Saving Tips: Which Signatures are Required to Bind a Mutual Release?

    It is a common misunderstanding that a Mutual Release must be signed by the Broker Manager or Broker of Record to have a binding Mutual Release and to release held funds. For a Mutual Release to be binding it only requires the signature of both the buying and selling parties. The standard OREA Form 122 confusingly has a signature section for the Broker Manager or Broker of Record which is preceded by the following preprint: "The Brokerage hereby releases all parties from any claim that the Brokerage may have had for commission or other remuneration in the above transaction, except ...

  • Backing out of a Deal: Conditions Are Not Escape Clauses

    Many Realtors incorrectly advise their clients that a condition can be used as an escape clause. For example, there is a conditional offer on Financing between a Buyer and a Seller. The Buyer wants out of the deal. The Realtor had advised the Buyer that it shouldn’t be a problem because the clause wording states: "This Offer is conditional upon the Buyer arranging, [..]a new […]Mortgage satisfactory to the Buyer in the Buyer's sole and absolute discretion.[…]" In this scenario, the Buyer’s Realtor communicates with the Seller’s Realtor that financing fell through and submits a mutual release. On the surface ...

  • Renting in Toronto: A Word of Advice

    It's rental season in Toronto so it seems fitting to bring it up in this weeks video. 15 years ago leasing was just a small part of the overall market. Today, the market for renting condos is two times bigger than for condo sales. Now, that is good for young people who want to live downtown, but it 's bad for our industry when it is only inexperienced or new agents who represent tenants. In the past week for example, we have had two REALTORS drop off deposits on a rental condo before the offer was even accepted. So what ...

  • Toronto Market Report August-September 2016

    Sales Commentary July sales on the Toronto Real Estate Board were just under 10,000 units, which was 2% higher than July of last year. However, these sale numbers were 22% lower than for June and about the same as in March of this year. This suggests a slowing market due to seasonality and also a market taking a breather. But the real drag to the market continues to be a lack of listings. ‘Active’ listings are 31% lower than in July of last year and ‘new’ listings in July were down by 7% over July of last year which just ...

  • Buying a Condo: The Three Biggest Questions to Consider.

    Buying a condo, or any property, is a big decision. Especially if you are a first-time buyer about to make the plunge into the real estate world. Yes, there are plenty of things to consider before you even make the decision to buy, but when you're ready to go out and choose your new home, here are the three questions you should make sure to ask yourself first.   Space How Much Space Do You Need? In the Toronto market you can get a giant detached home, or an itty bitty condo. Before you start looking make sure you have ...

  • Big Problems with the Foreign Buyers Tax

    A few weeks ago, we talked about the 15% sales tax on non-residents buying property in B.C. We said it would not have much of an impact on the property market but it was a great P.R. move. However, just the opposite is happening. Bad P.R. And real estate deals falling through. The B.C. Government announced this policy change on July 25th, effective August 2nd. This was probably not the smartest move. They made the changes effective closings when it should have been effective on the offer date. What is happening now is that you have residents, those are B.C ...

  • The Best Condo Reno's for Increasing Property Value

    In our last blog post we discussed the real cost of flipping a property. We mainly focused on the costs that most Flippers tend to overlook, such as closing costs, land transfer costs and commission. Today, we thought we would take a look at what home improvements will have the biggest impact, if any, on your selling price down the road. Not all projects will give you a 100% return on your investment (in fact, very few do). However, upgrades can always help sell your property faster and give your property that "love it, have to have it" quality that ...

  • The Cost of Flipping Properties

    Flipping properties is becoming a hobby for more and more people and that is a scary thought. So what do we mean by flipping? You buy a property, do some minor or major renovations and sell it 6-12 months later. Sounds simple enough, but here is the reality, flipping properties only works in a rising real estate market. When prices cease to increase by 10% per year, it will end and fail badly for the inexperienced. Here is why; A flipper has to buy first, there are legal and land transfer costs. Next, they have to carry a property at ...