16 - Assignment Sales - Pros and Cons - and how do they work exactly
Real Estate – Homes & Spaces by Ema Dantas
English - August 16, 2020 14:00 - 8 minutes - 6.12 MBInvesting Business Education toronto real estate new home buyer in toronto buying a home first time home buyers house for sale Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
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With assignment sales are not your regular cup of tea. There are essentially 2 closings: the closing between the Assignor and the Assignee, and the closing between the Assignee and the Builder. With the first closing (the assignment closing) the original purchaser receives their deposit + any profit (or their deposit less any loss) from the Assignee. On the second closing (between the Builder and the Assignee), the Assignee pays the remaining amount to the Builder (usually with the help of a mortgage), and pays land transfer taxes. Title of the property transfers from the Builder to the Assignee at this point.
Assignment sales require the services of an experienced real estate agent and a good lawyer.