What is a Condo Assignment
It refers to a series of transactions that allow you to resell purchased units by receiving the builder's Consent before ownership is transferred. In other words, resale refers to the transfer of the right to the property to another person before the earliest purchaser takes ownership of the property. This refers to handing over the contract you made with the builder to someone else.
Advantages of Condo Assignments
1. It is possible to realize market profits at the same time as the initial down payment.
2. You do not have to pay the cost of condo CLOSING, such as Occupancy Fee, Levy, Development Fee, various environmental expenses, acquisition tax, etc.
3. If the property price falls, you can make up for the loss.
Advantages as a Assignment Buyer
1. If you don't want to buy a condo right now, but you need a condo in the short future and choose to resell rather than sell it. -This is the advantage of not having to wait a lot of time.
2. It is more expensive than the initial sale price, but you can buy it cheaper than the current sale price.
3. As it is a new condo, everything is new first and you can get a full home warranty through the Tarion Warranty.
4. Land Transfer Tax (acquisition tax) is based on the initial sale price, not the resale price.
Top 10 Things to look out for during an Assignment Sale
If you're a real estate agent who has ever dealt with reselling, you might have thought that resale was more complex than regular real estate transactions. So, when writing a resale contract, you need more legal advice than general Re-Sale. In this article, we will take a look at 10 things to keep in mind when writing or reviewing a resale contract.
1. There are three parties to a resale contract. This is the builder, reseller, and resale purchase price. Even if the resale seller and the resale buyer have signed a contract, resale cannot be established without the builder's approval. Therefore, the builder's approval should always be a prerequisite.
2. In many cases, it is good to set a deadline for obtaining the builder's consent, but if not, it may be difficult to cancel the contract even if the builder's consent is delayed without a promise. However, there are many cases where builders can't do things quickly, so even if you set the deadline too short, This can be a problem-usually it's more than 30 days.
3. Before signing a resale agreement, it is a good idea to first ask the builder if it is acceptable to you. Insufficient pre-sale performance or other It is often the case that the resale itself is not approved for reasons. In this case, writing the contract first will waste time and money.
4. Whether you are selling by resale or purchasing, it is advisable to subject it to an attorney's review. In most cases, resale is different for each case, and in many cases, additional consultations are often made through an attorney. It is recommended that you allow review time for more than 5 days after the contract is signed.
5. It is recommended that resellers provide proof of payment of all Upgrades and Deposits on time. These contents may be contained in the builder's consent form, but it is recommended to deliver the documents separately. For example, after the builder deposits the Depoist, it issues an Evidence of Compliance or Form 4 and issues it to the buyer (resale seller).If you pass these documents to the resale buyer, there is little room for problems later. In the same vein, it is recommended that the proof that the buyer (resale seller) tasks such as color selection have been done within the deadline is also delivered to the resale buyer.
6. If the resale time is after Occupancy Closing, the resale purchaser has more to consider. For example, It is advisable to make sure that the unit has never been occupied-if the first tenant leaves for less than one year, take an HST It may be a problem when receiving. There may also be changes to the Tarion Warranty. If you are reselling after closing in, talk to a lawyer who is reviewing the contract and ask for related advice.
7. It is recommended that you consult with an accountant in advance for HST or Income Tax related resale transactions. In particular, resale sellers should check what HST burdens are incurred and proceed with a resale contract, and resale buyers should directly pay for HST Rebate from the transaction amount when they reside. It's a good idea to make sure you can take over the deducted benefits.
8. It is important to clearly set when to send and receive transaction payments. For example, it is advisable to specify whether the balance will be delivered to the resale seller at the end of the resale transaction or whether the balance will be delivered at the final closing (when the name changes).
9. Initial purchase agreements often have a number of benefits the builder gives the buyer. At the time of the final cloisng, a certain amount is given as credit, or an upper limit is placed on a specific item to be paid by the buyer (for example, development levy emd). However, these benefits It is often voided during resale, so be sure to see if these benefits will be passed on.
10. We recommend that you make a resale contract through a real estate agent whenever possible. Especially, OREA is only available to real estate brokers Using forms reduces a lot of things to worry about and makes mistakes less likely.
You can see that the condo resale contract is very different from the general transaction as follows. Therefore, if you receive sufficient consultation from a real estate expert with a lot of experience, I think it will proceed without any problems.
Team Park 부동산
Sung Gyu Park & Tyler Park
Branch Manager / Sales Representative
Branch Office : 7040 Yonge St. #N3, Thornhill. In Galleria Supermarket
Main Office : Home Standards Brickstone Realty, Brokerage
180 Steeles Ave Unit 30, Thornhill, ON L4J 2L1
Dir. (416) 886-8863 or (647) 522-8664
Office: (905) 771-0885 / Fax: (905) 771-0873
Web : Happyhometoronto.com