What is A Presale Condo Assignment Of Contract?

什么是预售公寓楼花转让？

Presale Condo Assignment of Contract of Purchase and Sale BC.

In British Columbia, a presale condo assignment of contract is a legal agreement in which the original purchaser of a presale condo (also known as an “assignor”) transfers their rights to purchase the unit to a new buyer (also known as the “assignee”). This is typically done before the unit is built or before construction is complete.

The process of transferring a presale condo purchase contract typically involves the assignor and assignee entering into a separate assignment agreement, in which the assignee agrees to assume all of the assignor’s rights and obligations under the original purchase contract. The assignee will then typically pay the assignor a fee for the assignment of the contract.

It’s important to note that in order to transfer a presale condo purchase contract, the developer or builder of the project must generally consent to the assignment. This is because the developer has a financial interest in the sale of the unit and may want to ensure that the assignee is financially capable of completing the purchase.

It’s also important to carefully review the terms of the original purchase contract and any applicable laws or regulations before entering into an assignment agreement. It’s recommended to consult with a real estate lawyer or other legal professionals to ensure that the assignment is done properly and in accordance with the law.

There are three parties involved in a presale assignment transaction.  

In a presale assignment transaction, there are typically three parties involved: the buyer, the seller, and the developer.

The buyer is the person or entity who is purchasing the property. The seller is the person or entity who is selling the property. The developer is the person or entity who is responsible for developing the property, which may include constructing a building on the land or renovating an existing structure.

In a presale assignment transaction, the buyer is purchasing the property before the developer has completed it. The buyer and the seller enter into a contract to transfer ownership of the property once it has been completed, and the developer is responsible for completing the construction or renovation of the property according to the terms of the contract.

It is important for all parties to carefully review and understand the terms of the contract before entering into a presale assignment transaction, as it can have significant legal and financial implications.

When can I assign a home? Are there any restrictions?

You will have to refer to the original contract of purchase and sale to determine whether or not you can assign the home. 

Assigning the right to purchase

The following must occur to ensure an assignment of a purchase agreement complies with the requirements under the Real Estate Development Marketing Act and Regulation:

The developer must consent to the assignment.

It is common for a pre-sale condominium developer to require consent before allowing an assignment of a purchase contract. This is because the developer typically wants to make sure that the person who is purchasing the unit is financially qualified and able to complete the purchase. In addition, the developer may have specific requirements for the assignment process, such as requiring that the assignee be pre-approved for financing or that a deposit is paid.

It is important for the buyer to carefully review the terms of the purchase contract, including any provisions related to the assignment, before entering into an agreement to purchase a pre-sale condominium. If the contract includes a clause requiring the developer’s consent for an assignment, the buyer should be prepared to provide any necessary documentation or information to obtain that consent.

Property transfer tax

Purchasers pay property transfer tax on the total amount paid to acquire the property. The property tax payment occurs when the title to the unit is registered at the land title office.

Why do assignments occur?

Assignments often occur when a presale has significantly appreciated value before completion. The current buyer would like to take the appreciation (often called a “lift”) while it’s up and assign it to another buyer.

Are assignments legal?

Yes. Real estate contracts are assignable under the law unless the contract expressly forbids it.