An assignment is a sales transaction where the original buyer of the property (“the assignor”) sells his rights and obligations agreed upon in the Agreement of Purchase and sale to the new buyer (“the assignee”) before the closing date of the property. The assignment clause is common in the world of pre-construction and commonly occurs in condos.
Yes. Before you can assign your condo the vast majority of builders will require you to get formal written consent. Assignment sale guidelines vary from builder to builder so it is best to revise the assignment clause listed in the original agreement of purchase and sale. Some builders may only allow assignments once certain requirements have been fulfilled such as the successful sale of at least 80% of the units in the building.
Real Estate contracts related to Assignment transactions can be tricky and a little bit more complicated. It’s crucial for buyers and sellers to understand what they are signing. It’s important to understand all the clauses in the agreement and their implications. Both buyers and sellers should consult with professionals who have in depth knowledge of assignments and understand all aspects of the assignment transaction. Consumers are encouraged to consult with the following professionals:
1. Real Estate professionals with experience in assignment transactions
2. Lawyers with specialization in Real Estate Law
3. Tax Professional
4. Builder’s staff who deals with all the assignments
5. Mortgage advisor