Top Questions to Ask Before Buying an Assignment Sale in Toronto
- marketing29669
- 2 days ago
- 2 min read
Buying an assignment sale in Toronto is different from purchasing a resale or pre-construction home. Since you're taking over a contract from the original buyer (assignor), it's crucial to ask the right questions to avoid surprises. Here are the key questions every buyer should ask before committing to an assignment sale.
1. Does the Builder Allow Assignments?
Not all builders permit assignment sales, and those that do often have specific approval processes, fees, and restrictions on marketing the property. Confirm the builder’s policies before moving forward.
2. What Are the Builder’s Fees for Assigning the Contract?
Builders often charge administrative or transfer fees for processing assignments. Ask about these fees upfront to avoid unexpected costs.
3. What is Included in the Original Purchase Agreement?
Review the original contract to understand:
Purchase price and deposit amounts
Incentives or upgrades included
Builder’s terms and conditions
4. How Much Deposit Has Been Paid & How is it Transferred?
Since the assignor has already paid deposits, you will need to reimburse them. Clarify the deposit breakdown and payment structure before proceeding.
5. Can I Secure Financing for the Assignment Sale?
Some lenders have restrictions on financing assignment sales. Work with a mortgage broker who has experience in assignments to confirm financing options.
6. What Are the Total Closing Costs?
Apart from the purchase price, factor in:
Land transfer tax
Legal fees
Builder closing adjustments Request a breakdown of all estimated costs to budget accurately.
7. Are There Any Restrictions on Reselling the Property?
Some builders impose resale restrictions, preventing the new buyer from selling the property immediately after closing. Check if there are any limitations.
8. When is the Estimated Occupancy and Final Closing?
Understanding the expected timeline will help plan your move or investment strategy. Delays in construction can impact occupancy dates.
9. Is There an HST Rebate & Who is Eligible?
Some assignment properties may qualify for an HST rebate, but eligibility depends on whether the property is intended as a primary residence or investment. Verify this with a tax professional.
10. Has a Real Estate Lawyer Reviewed the Agreement?
Assignment sales involve complex contracts. Having a real estate lawyer review the terms ensures you fully understand your obligations before signing.
Final Thoughts
Asking these questions before purchasing an assignment sale in Toronto will help you make an informed decision and avoid potential pitfalls. Always work with experienced real estate professionals to navigate the process smoothly.
Looking for assignment listings? AssignmentPlus.ca connects buyers and sellers with available opportunities.
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