Assignment Sales in Toronto: The Real Estate "Uno Reverse" Card

Toronto’s real estate market is full of unique opportunities, and assignment sales are one of them. Think of it as the “Uno Reverse” of real estate—you purchase a pre-construction property, but before closing, you transfer the contract to someone else. No moving in, no unpacking—just a contract handoff (with a few important steps in between).

But how does it actually work? Let’s break it down.

What’s an Assignment Sale?

An assignment sale happens when the original buyer (assignor) of a pre-construction property sells their purchase contract to a new buyer (assignee) before taking possession. Instead of selling the physical unit, they are transferring the agreement they signed with the builder. The assignee then assumes all obligations under that contract and will finalize the purchase directly with the builder upon completion.

Why Do People Sell Assignments?

Sellers may choose to assign their contract for various reasons, such as:

🔹 Change in Plans – Life circumstances can change, affecting their ability to move forward with the property.

🔹 Builder Policies – Some builders allow assignments, giving buyers flexibility before closing.

🔹 Investment Strategy – Some buyers purchase pre-construction with the option of assigning if needed.

Why Would Someone Buy an Assignment?

Assignment buyers often see benefits such as:

✔ New Construction Without the Initial Wait – Instead of buying directly from a new project launch, an assignee steps into a contract for a unit that’s closer to completion.

✔ Original Contract Terms – The terms of the original agreement, including builder incentives or upgrades, may still apply.

✔ A Brand-New Property – Assignment sales involve pre-construction units, meaning the buyer is getting a home that has never been lived in.

The Fine Print: Things to Know Before Assigning

📝 Builder Approval is Required – Most builders have policies regarding assignment sales, including approval processes and potential fees.

📝 Marketing Restrictions May Apply – Some builders do not allow assignments to be listed on MLS. Alternative marketing strategies may be needed.

📝 Legal Review is Essential – Assignment agreements involve specific terms and conditions. Consulting a real estate lawyer is recommended to ensure a smooth transaction.

Final Thoughts

Assignment sales provide flexibility in Toronto’s pre-construction market, but they require careful planning. Whether assigning a contract or purchasing one, understanding the builder’s policies and legal requirements is key.

Looking for assignment listings in Toronto? AssignmentPlus.ca connects buyers and sellers with available opportunities.