Buying Assignment Sales in the Toronto Real Estate Market?

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Condo Assignment in Toronto

As a home buyer or real estate investor in Toronto, you may hear buying condos on assignment is a new opportunity in the Toronto real estate market these days. So with the increased number of pre-construction condominium sales and assignment sales, this decision can bring a great investment opportunity to the Toronto condo buyers. This could be a good strategy to buy a Toronto pre-construction condo cheaply and sell before closing. But for newbies in this market, it could be difficult to understand what a condo assignment is.

So, read this complete guide before diving into your new investment planning for condo assignment to make sure you will be in the right direction. As buying or selling a Toronto condo on assignment is very complex you’ll need to seek help from one of the best Toronto real estate agents.

Before I walk you through how to handle condo assignment transactions, you need to get familiar with some of the basic terms.

Condo Assignment in Toronto

What is a Condo Assignment?

Condo assignment is a condo that was bought by an owner during its pre-construction stage, then it is sold to a new buyer while the construction is not complete. Here, the first original buyer of the condo who is selling it before completion is called the assignor. And the new buyer who is eager to invest in the condo assignment by purchasing from the assignor is called the assignee.

What is a Toronto Condo on Assignment Sale?

Are you looking to buy an assignment sale in the Toronto real estate market? An assignment sale is a real estate transaction between the original buyer and the new buyer of a pre-construction condo.

It is a written document or in other words, it is an agreement between the buyer of a pre-construction condo and the builder. This agreement shows that no one can take possession of the condo before it will be fully registered. It means the first buyer is only allowed to sell this agreement to the new buyer. The point is, the buyer can receive full ownership of the condo after the final closing date. That is the time that the title will be transferred to the buyer. After the closing date, the buyer should begin to pay the mortgage.

There’s no doubt that by condo assignment, you officially step into the path of the original Toronto condo buyer. But the condo assignment sale just proves you paid for downpayment and the condo isn’t officially yours until after the closing date.

Condo Assignment in Toronto

Why Assignment Sales?

Assignment sales are popular in Toronto because they can be a great way to purchase a pre-construction condo at a discounted rate.

If you’re interested in an assignment sale, the first step is to find a reputable and experienced real estate agent who is familiar with the Toronto market. A good real estate agent will be able to guide you through the complexities of the assignment sale process and help you find the best deal. They will also be able to provide you with advice on how to negotiate the best possible deal and how to protect yourself during the transaction.

Who’s Buying Assignment Sales In Toronto Real Estate Market?

The Toronto real estate market is booming, and it’s become increasingly popular for buyers to purchase assignment sales in the city. Assignment sales are when a buyer buys a property before it’s actually built and then resells it either before or after construction is complete.

In many cases, buyers are able to purchase an assignment sale at a significantly lower price than they would have paid if they had bought the property after construction was complete. This savings can be significant and can provide buyers with the opportunity to turn a profit when the market is hot.

So who is buying assignment sales in the Toronto real estate market? It’s primarily investors and developers, who are looking to capitalize on the rising demand for real estate in the city. Many of these buyers are looking to buy condos, as they are often more affordable than other types of real estate.

As previously mentioned, buying an assignment sale can be a great way to make money in the Toronto real estate market. It’s important for buyers to be aware of all the risks and benefits associated with assignment sales before making a decision.

The best way to make sure you’re getting the best deal on your assignment sale is to work with one of top Toronto real estate agents, who can help guide you through the process and ensure you’re getting the best possible deal. They can also provide insights into current market trends and give you advice on what type of assignment sale is likely to be the most profitable.

Buying Assignment Sales in the Toronto Real Estate Market

Important Things about Assignment Sales in Toronto

When it comes to assignment sales, there are some important things to consider. For example, if you’re going to purchase an assignment sale for a condo in downtown Toronto, you should consider the location, type of building, and proximity to amenities and public transportation. All of these factors can greatly impact the sale price and overall profitability of your investment.


When looking for an assignment sale, it’s important to consider the location. Many assignment sales in Toronto are located downtown, so you’ll have access to all the amenities and attractions that the city has to offer. You’ll also be within easy reach of public transportation, shopping, and dining.


Before you make an offer on an assignment sale, it’s important to do your research. You should review the building’s occupancy status and any documents related to the purchase, such as the Assignment Agreement and the Deposit Receipt. If you’re unfamiliar with these documents, your real estate agent can help you understand them.


Once you’ve done your research and made an offer on an assignment sale, you’ll need to provide a deposit. The deposit is typically 5% of the purchase price and is held in trust until the transaction is completed. This deposit is non-refundable, so it’s important to make sure you’re happy with the terms of the sale before committing to it.

Advantages and Disadvantages of Condo Assignment for Toronto Buyers

Before starting this process, you must consider all the advantages and disadvantages of buying a condo assignment in Toronto. Here we mention some of the most important ones to remember:

  • Buying a condo assignment in Toronto real estate means you accept all the terms and conditions that the assignor agreed to. So, you better take the advice of a Top Toronto realtor and get a real estate lawyer to review the agreement during the ten-day “cooling-off period” and avoid passing any risks onto you. While you can have your lawyer review the terms they agreed to, you can’t renegotiate them.
  • Condo assignment makes you eligible for the Tarion warranty program. This not-for-profit consumer protection organization established by the Ontario government provides years of warranties against defects and problems with your condo.
  • Buying a pre-construction condo as an investment has some usual risks that you should be aware of, including delays in occupancy/closing dates or making some changes to your condo or building. The most important one is the interim occupancy, which is the period between the day you occupy your condo and the day you take its ownership. When you buy a pre-construction property in Ontario, the interim occupancy period may get longer.
  • There is a chance that you can or cannot choose any finishes and upgrades. It totally depends on the stage of construction the condo is in when the contract is assigned to you.

What is HST?

The new construction condos may have HST (Harmonized Sales Tax, which is 13% in Ontario). If you are not going to live in this condo, you should pay a huge amount of HST on closing.

  • You should pay for both the 20% downpayment for a condo paid by the assignor to the builder and the difference between the current asking price or the new purchase rate of the condo and its original value in Toronto real estate. There are also closing costs to consider which includes builder adjustments, Land Transfer Tax, HST on appliances, development charges, utility connections fees, and Tarion fees. You better consider 1-3% of the original purchase price for the closing costs of an assignment sale condo.

Condo Assignment in Toronto

Buying an Assignment vs Buying a Resale Toronto Condo

Buying an assignment sale condo is not like buying a resale condo in Toronto. It lets you acquire just the title from the assignor. So, it doesn’t mean buying the condo itself. This is the main difference because the Toronto condo ownership will transfer to you after the Final Closing Date. The other difference would be the legal fees. The legal fees to buy an assignment condo are more complicated and usually higher than resale condos.

  • The actual purchase price before closing costs for condo assignment is often lower than its final price after it is registered. This could be a valuable investment.
  • In the case of a deposit, the assignee should pay the amount of deposit that the assignor paid to the constructor. The typical deposit for Toronto condos is normally 15% of the original purchase price.
  • The assignee should pay for Monthly Occupancy fee for the occupancy period before taking possession until the registration date. This fee could be different based on the current interest rate, maintenance fee and property tax portion.


However, the best reason to buy a Toronto condo on assignment is buying at a price less than the market value when it’s completed. The next reason is that you are getting a totally new condo without waiting for the long years that typical pre-construction buyers have to endure. Don’t forget about taxes and legal fees. And make sure that the constructor completely approves the transaction of assignment sales. Be aware of the assignment closing date, occupancy closing date and the final closing date. Definitely use the help of a professional Toronto real estate agent to make sure all the complicated paperwork goes right.

So, assignment sales in the Toronto real estate market can be a great way to make money. However, it’s important to do your research and work with an experienced and reliable real estate agent to ensure you’re getting the best possible deal.

By taking the time to do your due diligence, you can ensure you’re getting the best deal on your assignment sale in Toronto.

Feel free to contact us or book a free consultation meeting with us or even leave a comment to ask your questions. We’ll answer ASAP.

*This article is only for general information and must not be relied on. For any financial decisions before doing any kind of purchase or sale or making any financial decisions you need to consult with appropriate professionals.

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