This past month I worked with multiple Seller clients of mine to facilitate the sale of their Assignments. Now many of you have probably heard this term before but I often get the question as many people don’t quite understand what they really are.
When someone buys a PreConstruction property, they have a few options. The Buyer can chose to hold on to the property and eventually close on it (oftentimes they close many years down the road). They also have the option of paying their deposits, however selling the property prior to it officially closing. This is a term referred to as an Assignment Sale, because the property – with the permission of the Builder is Assigned to a new owner.
Assignments are an entirely different beast than a Resale property. There are many more rules and regulations imposed by the Builder and they should be strictly adhered to. Oftentimes Assignments are not allowed to be marketed on MLS systems and there can be costs asscociated with them. They also require a Solictor review and a different type of deal structure with respect to deposits and profits.
My experience this past month was interesting to say the least, as each of my handful of Assignments literally flew off the shelves. Each garnered several offers in a matter of 1-2 days and all ended up with end users as the Buyers. This is a direct result of the hot market we are seeing and the difficulty that many are having securing a unit. Assignments have clearly become a viable option for Buyers, which otherwise was not as common.