Continuing my series on Toronto Condo Assignments, I want to address a common question that many people who have bought pre-construction condos in Toronto have, “Can I assign my Condo?”.
The answer is it depends. It depends what is in your contract, or your Agreement of Purchase and Sale that you have with the developer.
Every Agreement of Purchase and Sale will have a clause that deals with the handling of assignment sales when purchasing a new condo. By default, most contracts will forbid the assignment of units, but many developers have included the ability to assign as incentive for buyers to purchase. Also, many savvy buyers insist on having the ability to assign written into their contracts if it is not there by default. (Remember, it is not in the best interests for the developer to have individual sellers re-selling their product before the building is completed.)
If your contract allows you to sell by assignment, there usually is a fee to do so. The fee often is in the $3000-$5000 range. This is not negotiable.
In some cases, even if you do not have an assignment clause in your original contract, the developer may allow you to assign your unit as a one-off scenario, or they may be willing to add an assignment clause to your contract.
Final word of caution: NeverÃƒâ€šÃ‚Â assume anything. Always consult your Realtor, your lawyer, and the developer before proceeding with any effort to sell your condo by assignment.
Wondering if you can assign your condo? Contact me.