What is an Assignment?

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Question: What is an Assignment?

An Assignment is when you sell your condominium investment before you take possession.

The time between when you purchase your condominium and when you take possession can range from 1-6 years depending on a number of variables (size and scope of project, how late in the cycle you purchased etc.). Until the possession date, there is no actual “ownership” of the condominium, therefore you are simply “assigning” the rights to the condominium to a new purchaser..  Many pre-construction condominiums offer an assignment clause for a small administration fee.

The benefits of an assignment are:

  • Sell before you close
  • No need to get a mortgage
  • Potential to get original deposits and profits and “cash out”

The drawbacks of an assignment are:

  • Most developers do not allow you to post your assignment listings on MLS, making it trickier to market and find potential buyers.
  • No two assignment deals are ever the same which increases the complexity of the deal
  • If the new buyer is unable to close on the condominium for whatever reason, the original purchase remains responsible to close.
Roy Bhandari