Selling a Presale Condo Assignment of Contract in Vancouver, BC: What You Need to Know
Selling a presale condo assignment of contract is when the buyer of a presale condo sells their rights or “assigns” their rights under the contract to another person. The original seller of the presale, the Developer or builder of the property, has to give written permission to allow the assignment to occur.
Here are some key things to keep in mind when selling your assignment in Vancouver:
If you’re in the market for a new condo, you may have come across the term “presale condo assignment of contract.” This is a process where the original buyer of a presale condo sells their rights or “assigns” them to another person before the condo is completed. In this article, we’ll dive deeper into what presale condo assignment is, how it works, and what you need to know before considering it as an option.
Understanding Presale Assignment
Presale condo assignment is a process that allows a buyer of a presale condo to sell their contract rights to another party before the condo is completed. The original seller of the presale, the developer or builder of the property, must give written permission for the assignment to occur. In some cases, there may be a fee associated with the assignment.
How Presale Assignment Works
When a buyer signs a presale contract, they agree to purchase the condo from the developer or builder when it’s completed. However, if the buyer’s circumstances change before the completion date, they may not be able to complete the purchase. In such cases, the buyer has the option to sell their rights under the contract to another person, who becomes the new buyer.
The process of presale condo assignment involves the following steps:
- The original buyer decides to sell their contract rights and finds a buyer who is willing to purchase those rights.
- The original buyer and the new buyer sign an assignment agreement of contract, which outlines the terms and conditions of the sale.
- The original seller, the developer or the builder must give written consent for the assignment. They may charge a fee for the assignment, typically paid by the original buyer.
- The new buyer takes over the original buyer’s obligations under the contract, including paying the purchase price and closing costs when the condo is completed.
What You Need to Know Before Considering Presale Condo Assignment
Before you consider presale condo assignment as an option, there are a few things you should know:
- Not all developers allow presale condo assignments. Make sure to check the terms of your presale contract to see if it allows for assignment.
- If the developer does allow presale condo assignments, they may charge a fee for the assignment. This fee can range from a few hundred to a few thousand dollars.
- The original buyer is responsible for finding a new buyer for their contract rights. This can be a time-consuming process and may require the help of a real estate agent.
- The new buyer takes on all of the obligations of the original buyer under the contract, including paying the purchase price and closing costs. Make sure the new buyer is aware of these obligations before they agree to the assignment.
A presale condo assignment can be a useful option for buyers who need to sell their contract rights before the completion of a condo. However, it’s important to understand the process and any fees or obligations associated with it before considering it as an option. By doing your research and working with a knowledgeable real estate agent, you can make an informed decision about whether a presale condo assignment of contract is right for you.