What is an assignment?
Here is a general overview of an assignment.
Simply stated an assignment is re-selling a property before it is complete and ready to be occupied. (e.g. a condominium during the construction stage)
An Assignment Sale is when the original purchaser sells and/or transfers all the rights and obligations of the original contract between themselves and the Vendor to another party before the official completion date for the property. Title transfer for the property does not occur until the city issues the necessary permits and the unit is ready for physical occupancy.
In an assignment sale you are only purchasing or selling the contractual rights to a property not the physical property itself and all its rights and obligations until the unit is complete.
For Example:
Jane Smith buys a condominium in a project which is in the pre-construction stage in 2005. Project is set to complete in 2007.
Original Purchaser = Jane Smith
Vendor = ABC Condo Developer
Jane Smith in 2006 sells to John Doe his contract for a specific dollar amount and/or specific terms.
Original Purchaser = Jane Smith
New Purchaser = John Doe
Vendor = ABC Condo Developer
In 2007 when the project completes and the property is ready to be occupied, official title transfer takes place between Vendor (ABC Condo Developer) and the New Purchaser (John Doe).
After completion in 2007 the official new owner is John Doe who now has all the rights and obligations to the property which every other home owner is entitled to, and any future resales will be that of a regular real estate sale/transaction.
This is just a general overview of an assignment.
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