When it comes to pre-construction assignment sales just remember that the original first buyer of the unit is called the assignor.
Within the real estate market and any business-driven market, the signing of contracts for business transactions are the norm. Sometimes those obligations and benefits along with the contract will legally be transferred to someone else. The original owning party of the contract is called the assignor.
Sarah is a real estate investor and is very knowledgeable about the current state of the real estate market.
She signs a pre-construction contract for a one bedroom plus den unit in a 14 storey residential condo development that is scheduled to be ready for occupancy in three years.
She is not purchasing this unit for her own residence; she is strictly purchasing it has an investment property and knows that she will be completing an assignment sale before final closing occurs.
By signing the pre-construction Agreement of Purchase and Sale she has entered a legally binding contract with the developer of the condo. Since Sarah is the original holder of the contract and looking to transfer it to a new party, she is referred to as the assignor.
Two and a half years have gone by and the condo building is well under construction and almost ready for occupancy. Sarah is now ready to sell the one bedroom plus den unit she bought to Megan, the person who wants to buy the unit.
The transfer and sale of the physical condo unit’s contract and any incentives that were purchased alongside it is called an assignment sale and Sarah, the person who is selling the unit is considered to be the assignor in this process.
If you are currently considering selling a contract for a pre-construction home or condo unit, consider listing an assignment sale with one of CondoNow’s Certified Experts. Don’t hesitate to contact us, we are here to help.
