Presale Condo Assignment

June 23, 2008

v721966.jpgPresale Condo Assignment – Richmond BC

Assignment of a contract on a presale new condo can only be effected when the condo developer gives consent to the buyer (original buyer) to assign the contract to another buyer. In an assignment deal, the seller and buyer are involved in the sale and purchase of the contractual rights to a property. Although a contract may be assigned, the first buyer is still legally obligated to the contract until the second buyer takes possession of the property on completion date.

The transaction in taking physical possession of the property by the second buyer will only be completed when the final occupation permit is issued by the City. Current market condition has changed, and there is  little interest from condo buyers for presale condo contract assignments. The reason being better deals are available on resale new condos that were completed recently. You can view some of the resale concrete high-rise condos around Richmond City Center here.

condo assignment

An investor selling a presale condo has to make certain that:

> the developer allows for assignment of the contract (some contracts do not allow assignments)
> the cost or assignment fee payable to the developer
> restrictions to advertise the assignment or listing the condo for sale on the MLS

Dealing With An Assignment

There are contractual obligations and legal ramifications for both buyers and sellers involved in the assignments of new condos that are not completed for delivery. The tightening of lending and investors not being able to get financing are common problems faced by investors.

If you are a seller of a presale condo in the Greater Vancouver area, or if you are a buyer interested to take over assignment of a presale new condo contract, kindly email me.

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