Signature Investment Properties
A person, company or entity who transfers rights they hold to another entity. The assignor transfers to the assignee.
For example, a party (the assignor) that enters into a contract to sell a piece of property can assign the proceeds, or benefits of the contract, to a third party (the assignee)
Many people cringe at the idea of an assignment sale – they are not well known by the public, nor do many agents fully understand them either! Still, when handled by an experienced agent, they are not nearly as complex as they seem and can in fact follow with some significant advantages for both parties involved.
Quite simply, an assignment sale happens when a person purchases a builder’s agreement from another individual. In these cases, the building is not 100% finished and the builder has not yet transferred title for the unit to the buyer. The property only exists at that stage as a contract to close on the purchase in the future. Therefore, what essentially happens is the builder agrees to switch the name on the purchase and sale agreement from one person to another, and that new person then takes on the responsibilities of the contract and is allowed to close and gain title to the unit when the property is 100% complete.
In downtown Toronto, assignment sales are common with condos, and may happen anytime between when a building is in the infancy of its construction to the time when it is nearly complete. Even though some condo units may appear finished, and you can walk through or potentially even be able to live in them, the sale may still be considered an assignment if the builder has not yet transferred title for the unit to the person named in the purchase and sale agreement.
Since the usual “buyer” and “seller” terminology doesn’t quite work here because we’re dealing with the transfer of a contract, let’s use the official terminology: Seller = Assignor (the original owner of the contract), Buyer = Assignee (the new buyer of the contract).
There can be pros for both the assignor and the assignee in an assignment sale, some of which are mentioned here: