It is the original purchaser’s responsibility to uphold the terms of the Agreement of Purchase and Sale. The new purchaser assumes the responsibilities once the pre-construction assignment sale is completed. The process to completion needs to be carefully monitored as it can be complex.
Mark is looking to sell the contract for the pre-construction one–bedroom condo unit that he purchased three years ago in a condo that is almost ready for occupancy in downtown Toronto.
Mark decides to seek advice from a real estate agent well-versed in pre-construction assignment sales and a pre-construction lawyer with assignment sales experience to make sure he knows his rights and responsibilities before, during, and after the transfer to the new buyer.
It is very important that Mark consults his Agreement of Purchase and Sale and the developer before listing the contract for sale.
Different developers have different rules regarding assignment sales and Mark must ensure that he adheres to the ones his developer has laid out within the contract.
Mark’s developer has outlined within the contract that if he is to assign the pre-construction contract for the unit in question, he is to compensate the developer for this transaction in the form of administration and/or legal fees.
It is now also Mark’s responsibility to find a buyer for the contract. By enlisting the help of a real estate agent from CondoNow that specializes in pre-construction assignment sales, Mark will be able to have the sale listed on platforms that will attract potential buyers.
Mark will continue to be actively involved in the selling process as he is the one that will set the selling price, if he is willing to negotiate or not, and accept the final selling price.
Once Mark completes the pre-construction assignment sale and the contract is transferred to the new buyer, he no longer owns the contract for the unit. He is no longer has any legal rights to anything outlined in the contract or to do with the unit in question. All pre-construction occupancy, closing, and mortgage costs are now the responsibility of the new buyer.
However, Mark must be careful as he may be held liable if the new buyer cannot uphold the costs and responsibilities of the contract for the new home. Once everything completely clears and the new buyer obtains the title for the home is usually when Mark will receive his profit.
As a potential pre-construction assignment seller, you may have many questions and concerns regarding assignment sales and what your rights and responsibilities are. CondoNow has a large database of knowledgeable agents who are here for you. Contact us today.
