It takes passion, dedication and savvy to be able to navigate through changes in
today's market. In the past, realtors have become very familiar with the resale
and pre-sale sectors in the market and have enjoyed a relatively stable flow of
business. Now we are seeing major fluctuations in terms of sales and realtors are
feeling the hit over the uncertainty in property values, new building construction
and the overall economy.
Instead of panicking, the country's top realtors have risen to the challenge by
being in the know and learning about assignment alternatives, which is the fastest
growing real estate sector. We've seen that in places like Dubai and Vancouver,
realtors taking the time to learn the assignment process have elevated themselves
over their competitors by offering their clients the opportunity to buy or sell
condominiums before Final Closing.
It is a sophisticated process that is not for the faint of heart. Through time and
efforts, our team at AssignIt.ca has gained the experience and knowledge and have
successfully closed hundreds of assignment transactions. With our confidence and
specialty in assignment sales, we've dedicated over a year to develop a system known
as the Assignment Listing Service (ALS) that invites realtors to participate in
this exciting niche market.
With AssignIt.ca you have the opportunity to generate more income by offering clients
the opportunity to buy or sell an assignment. You can post an unlimited amount of
properties on behalf of your sellers and investors on the ALS helping them increase
the exposure of their unit for thousands of potential buyers to see. You can also
search thousands of units quickly and easily on the ALS so your buyers have a wider
choice with exclusive assignment properties.
By becoming and Assignment Professional and taking our course training, you will
learn the complete assignment process and be given referrals to close assignment
transactions. If assignment sales are not for you, instead, you can refer clients
to one of our trained Assignment Professionals to close the transaction. In turn,
you will receive a referral fee once the deal has gone firm.
In today’s ever changing market environment, you owe it to yourself and your clients
to be well aware and informed on this; the fastest growing industry in real estate.
There are more properties under construction or in interim occupancy than ever before;
take advantage of what this system can do for you.
An Assignment is a legal sales transaction whereby the Original Purchaser (the "Assignor")
of a property sells, and thereby transfers, their interest and obligations under
the original contract to a new Purchaser (the "Assignee"). This assignment takes
place during interim occupancy. The "Assignee" will assume all of the "Assignor's"
duties and obligations under the original Purchase & Sale Agreement. These rights
and obligations are stated in the original Purchase & Sale Agreement and include
terms such as payments of mortgage, taxes and maintenance fees during interim occupancy.
Upon Completion, the "Assignee" is granted the Title to the real property and will
incur all final closing costs.
An Assignment is legally permitted unless otherwise expressed in writing. An Assignment
fee may be charged by the Developer and is normally a cost borne by the "Assignor"
(the Original Purchaser).
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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 elements are the key reasons why more and more sellers are taking advantage
of Assignment opportunities. They know they are saving time and maximizing their
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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 $15000
including provincial land tax, city tax 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 are conveniently adding. Most have no idea
that they have signed an agreement which allows for these provisions.
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 on average, $1600 per month or $16,000 over the
Interim Occupancy Period. 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 and carrying costs than the difference
between the resale and assignment sale price (ref Graph B).
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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 consent to allow for assignments.
In fact in the past three years we have yet to run into this difficulty. When and
if this happens, we have a plan “B”. Trust in us and let us do what
we do best, our job!
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With the costs of building materials and labour going up, and the traditional system
of New Home Sales, Assignments are predicted to out sell Developers remaining unsold
units. Pricing has increased dramatically since opening day and investors whom have
found themselves over leveraged have been forced to reduce pricing accordingly.
Developers on the other hand are hard pressed to reduce their pricing because of
increased construction costs.
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As a Realtor with AssignIt.ca, you will have the opportunity to: