1. Why should I consider an Assignment?
2. What is the Interim Closing Date?
3. What is a Final Closing?
4. How do I mortgage the balance and when?
5. What fees must I pay?
6. When can I move in?
7. Should I get legal advice/ Do I need a Lawyer?
8. Can I change anything in the Agreement?
9. How should I negotiate this Assignment?
10. Is it Legal and Binding?
11. How much deposit do I need?
12. What price should I pay?
13. Why don't I see these units on the market?
14. Is my deposit secured?
15. Do I get to find out what it originally sold for?
16. Do I get original?
17. Can I make my agreement Conditional on Financing?
18. Can I get out of the deal?
19. Who pays the closing cost?
1. Why should I consider an Assignment?
The biggest advantage to buying an assignment is that you are getting a unit
that is new and should be less expensive than the market value and the pre-sale
value. Since it cannot be advertised by conventional means (MLS) (newspaper), there
are fewer people looking at it, less demand usually lowers the price.
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2. What is the Interim Closing Date?
The Interim Closing is the date the Developer hands over the keys and allows
the owner to take occupancy even though the building is not yet registered with
the City. During the interim occupancy, and, according to the condominium act the
owner would be responsible for the monthly payments of:
interim occupancy fees.
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3. What is a Final Closing?
Final Closing refers to the date soon after the building is registered as
a Condominium Corporation with the City. On this date, the purchaser pays the balance
owing under the contract of purchase and arranges their own mortgage.
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4. How do I mortgage the balance and when?
For this information, our mortgage specialist Scott Westlake would be more
than happy to speak with you directly. Click here to e-mail Scott.
The Buyer has Three Banking Days after the date that the Assignment Agreement is
accepted in order to satisfy themselves with financing. AssignIt.ca has a team that
includes Mortgage Specialists that have experience in Assignment transactions.
RBC Bank - Scott Westlake scott.westlake@rbc.com
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5. What fees must I pay?
As the buyer, you are asked to pay the initial deposit within 24 hours of
the date the Assignment Agreement is accepted. You will also be paying monthly Interim
Occupancy fees to the Developer upon interim closing and the balance to the Developer
on Final Closing.
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6. When can I move in?
You can move in on the Closing Date stated on the Assignment Agreement. This
is considered your Possession or Occupancy date.
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7. Should I get legal advice/ Do I need a Lawyer?
You should always be legally represented in all matters of real estate. Finding
a lawyer whom is knowledgeable in new home condominium assignment law is the challenge.
By signing up with AssignIt.ca, you will be given the contacts of a lawyer who will
always protect your best interests in the Assignment transaction.
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8. Can I negotiate anything in the Agreement?
In an assignment, there are three things that are negotiable between the
Assignor and the Assignee.
The New Purchase Price – The offering price of the assignment
The Deposit – The amount that the buyer is willing to put
as an initial down payment (keep in mind the assignor has probably already deposited
25%).
The Closing Date – Depending on what you agree on, ideally
you would have them close the assignment on the same day that it is available for
occupancy to lessen their expenses and optimize your final price.
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9. How should I negotiate this Assignment?
Contact us! Through AssignIt.ca you would be set up on an easy and reliable
program that is tailored to get you the unit you desire without any fee charged
to you. An Assignment Professional will look after your best interests, inform and
educate you on the Assignment process and negotiate the best deal on your behalf.
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10. Is it Legal and Binding?
Yes. Once all the conditions outlined in the Assignment Agreement are met
and the deposit cheque has been issued to the Developer, the contract is under seal
and considered legally binding.
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11. How much deposit do I need?
Usually the Deposit is about 25% of the New Purchase Price, but you could
negotiate a lower amount based on your financial situation. Get a pre-approved mortgage
certificate to justify a lower down payment. Remember you are making an offer to
someone who has already given 25% to the developer.
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12. What price should I pay?
When you contact us, an Assignment Professional will do a market analysis
to see what similar units are selling for. Take that information to figure out the
appropriate purchase price and use it to negotiate the best deal for your desired
unit.
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13. Why don't I see these units on the market?
Because the building is not yet registered with the City, these units cannot
be advertised on the Toronto Multiple Listing Service or by any other conventional
methods.
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14. Is my deposit secured?
The Deposit is insured by a deposit receipt issued by the Ontario New Home
Warranty Program. Your deposit shall be held in trust pending developer's consent.
You will then inherit the original deposit held with the developer's solicitor.
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15. Do I get to find out what it originally sold
for?
Yes! In the Assignment Calculation Sheet, the price that the Seller bought
the unit for is clearly displayed for all parties to see.
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16. Do I get an original Agreement of Purchase
and Sale?
Yes! The Seller will provide a copy of the Original Purchase and Sale Agreement
for you to keep in your own personal records.
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17. Can I make my agreement Conditional on Financing?
Yes! You can negotiate to have three to five banking days to obtain satisfactory
financing for the property.
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18. Can I get out of the deal?
You can get out of the deal by not waiving your condition of finance and
solicitor approval. A waiver must be signed within your conditional period of time,
failing which, the deal is void and all deposits returned without interest.
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19. Who pays the closing cost?
The closing cost is absorbed by you the assignee. Remember once the assignment
is firm, you have taken over as the purchasers of this unit in all aspects. The
original purchaser (assignor) essentially disappears in the eyes of the developer.
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