Presale Condo Assignment of Contract of Purchase and Sale BC
In British Columbia, a presale condo assignment of contract is a lawful arrangement where the original buyer of a presale condo (referred to as the “assignor”) transfers their right to purchase the unit to a new buyer (referred to as the “assignee”). This transfer usually takes place before the unit is constructed or before construction is completed. See our presale assignment pros and cons.
Transferring a presale condo purchase contract typically involves the assignor and assignee entering a separate assignment agreement. In this agreement, the assignee agrees to assume all rights and obligations of the original purchase contract from the assignor. As part of the assignment, the assignee generally pays a fee to the assignor for the contract transfer.
It’s important to note that transferring a presale condo purchase contract requires the consent of the developer or builder of the project. The developer has a financial interest in the unit’s sale and may want to ensure that the assignee can complete the purchase.
Before entering into an assignment agreement, it is crucial to carefully review the terms of the original purchase contract and relevant laws and regulations. Consulting a real estate lawyer or other legal professionals is recommended to ensure the assignment is conducted correctly and complies with the law.
Three parties are typically involved in a presale assignment transaction: the buyer, the seller (assignor), and the developer. The buyer purchases the property before its completion, while the seller is responsible for selling it. The developer is in charge of developing the property, which could involve constructing a building or renovating an existing structure.
Whether or not you can assign the home depends on the original contract of purchase and sale. To comply with the Real Estate Development Marketing Act and Regulation requirements, the developer must consent to the assignment. It’s common for pre-sale condominium developers to require consent before allowing an assignment to ensure the assignee is financially qualified to complete the purchase.
Assignments often occur when a presale property appreciates significantly in value before completion, and the current buyer wishes to capitalize on this appreciation by transferring the contract to another buyer. Assignments are legal unless the contract explicitly forbids them.
When the title to the unit is registered at the land title office, the purchasers pay property transfer tax on the total amount paid to acquire the property. Contact us to answer any questions.