ASSIGNMENT FACTS

Tuesday Jul 28th, 2020

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What all negotiations can one make in an assignment sale?

 • Original terms and conditions with the builder

• Usual risks of pre-construction – time delays, changes to unit/

building etc.

• Finishes and upgrades – Can new buyers choose?

• HST impacts

• Consent of Builder

• Restrictions on assignment?

• Assignment fees

• Land Transfer tax savings

• Review of original APS by a new buyer

Assignments

• RECO advises anyone participating in an assignment to seek the

advice of a tax specialist. Generally, assignors can expect to pay

tax on any profits they realized from the assignment. Land

transfer taxes are paid by the assignee, as they are only due

when the sale closes (that is when the property actually

changes hands)

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