When an assignment sale occurs within the pre-construction real estate market the legal transfer of the contract for the home or condo in question is now assigned to the new home buyer, they are known as the assignee.
The seller (or the assignor) is trying to assign (or sell) the contract for a pre-construction property to a new buyer (or assignee). The buyer is assigned all rights, obligations, and responsibilities related to the contract in question going forward. The contract is transferred from the seller (the assignor) to the buyer (the assignee) and it now becomes their responsibility. So, simply put, the assignee is the purchaser of the assignment sale, and will become the new owner of the contract, and in the end, the home owner.
Megan currently lives and works in Toronto but is looking to move just outside of the city so she jumps online and converses with her real estate agent about searching for a new pre-construction townhome in Vaughan.
Her real estate agent suggests a brand-new townhome in the city that is located near many lifestyle amenities and transit options. The home offers free parking and low maintenance fees. The unit is a pre-construction assignment sale, which is great for Megan because it gives her the ability to negotiate the price and potentially get a much better deal on the sale.
Megan likes the home, the area, and the incentives that are included with the sale. She is able to negotiate a great deal and decides to move forward with the purchase of the contract for the new townhome.
Megan is the new buyer of the pre-construction contract and she is legally referred to as the assignee in this process. She receives all rights and responsibilities for the pre-construction contract in question and takes over pre-construction contract ownership from the assignor. In other words, once the assignment sale is completed, Megan is now the proud owner of a brand-new home to live in.
If you are currently searching to purchase your first or a new pre-construction home, let CondoNow’s Certified Experts help you navigate an assignment sale and help you get a great deal and get you into your dream home faster.
