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As a Buyer of an assignment, you are getting a brand new unit for a lower price
than a Presale or Resale. Since they are exclusively sold, it may be the only way
to get your hands a hot property in times of high demand for less.
  
Assignments are legal transactions where the original purchaser (assignor) transfers
his/her property rights to a second purchaser (assignee) during Interim Occupancy
and before Final Closing. Historically, sellers have fared well from selling property
through an Assignment sale. New home condominiums can often get re-valued with surprisingly
high gains for the original sellers. Although these types of sales have been booming
in such places as Vancouver and Dubai, condo assignment sales are new to the Toronto
markets. Many owners have been curious about assignments, but there hasn’t really
been anyone to educate and support sellers that are looking to list their units
for assignment.
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Sellers who have researched and are motivated to sell right away benefit from the
fact that they don’t have to wait for Final Closing to get their deposits back.
They also save on all the taxes, Final Closing costs and Monthly Interim Occupancy
fees. These fee's have been eating 40-60% of the investor's profit. These elements
are the key reasons why more and more investors are taking advantage of Assignment
opportunities. They know they are saving time and maximizing their profits!
As a Buyer of an assignment, you are getting a brand new unit for a lower price
than a Presale or Resale. Since they are exclusively sold, it may be the only way
to get your hands a hot property in times of high demand for less.
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The most common question we have been getting is “Can I legally assign my unit?”
For the most part, developers will give us consent to allow for assignments. In
fact in the past three years we have yet to be turned down, not that anyone can
just go ahead and do it, there is a systematic, legal and professional approach
that we use so as not to jeopardize your position with the developer. We have 40
years of new home sales and legal experience backing you up. Trust in us and let
us do what we do best, our job. We trust that you will do yours and continue investing
with us on future projects.
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In terms of profit, some owners think it would be better to wait and sell their
unit on the open market for a higher price. However, they may have forgotten about
the costs involved in closing their unit. On average, closing costs have been about
$15,000 including provincial land tax, city tax, GST and education levies along
with Tarion Warranty fees, legal fees, hook-ups, disbursements and adjustments not
to mention a host of additional fees that the developers have added. Most have no
idea that they have signed an agreement which allows for these provisions, (check
out page 2 in the agreement of purchase and sale under adjustments).
You are also paying the Interim Occupancy fees (mortgage, tax and maintenance) up
until the final closing. Lets not forget to mention the waiting time, some buildings
can take up to 10 months to close. For owners not planning to move in to the units
themselves, this can cut into profits earned since the time that they bought it.
By the end of it, they’ve paid more in closing costs than the difference between
the resale and assignment sale price.
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As an owner, you should take comfort in the fact that we have successfully rented
out 98% of our rental listings for the past 5 years. We will always work in your
best interests to get you the best price for your unit and a trustworthy Tenant.
We take care of the paperwork, exchange of keys and cheques and ensure all your
questions and concerns are dealt with efficiently. We even have a Property Management
Program in which we act as the liaison between you and your Tenant for a small fee
(6%). In this way, you never have to worry about collecting rent since we do the
work for you.
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As an Investor with AssignIt.ca, you will have the opportunity to:
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