Assignment Sales Toronto and GTA: Sell or Buy a Pre-Construction Assignment

An assignment is a sale of your right to buy a pre-construction home before it closes. With record unsold inventory in the GTA, plenty of buyers who signed in 2021 and 2022 now owe more than the unit is worth, and plenty of buyers want a new unit without a four-year wait. I handle both sides.

Selling your assignmentWhat your agreement allows, what the builder will charge, what the unit is realistically worth today, and whether assigning beats closing.
Buying an assignmentA new home closing in months instead of years, with the builder price locked in and the warranty still attached.
The numbers in writingDeposits to reimburse, the premium, the assignment fee, land transfer tax and closing costs, laid out before anyone signs.

What to check before you assign

Your agreement of purchase and saleMost builder agreements need the builder’s written consent to assign. Some ban assignments outright, some only allow them after a certain date, and some ban advertising the unit on MLS.
The builder’s feeBuilders usually charge an assignment fee plus their legal costs. The amount is set by your agreement and varies widely, so read it before you price.
DepositsThe buyer normally reimburses the deposits you have paid and pays the premium on top. Who pays what, and when, goes in the assignment agreement.
TaxSince January 1, 2023, profit on a home or an assignment held for less than 12 months is generally taxed as business income under the federal anti-flipping rule, with some life-event exceptions. HST can also apply to an assignment depending on why you bought. Talk to an accountant before you list.
Land transfer tax for the buyerThe buyer pays Ontario land transfer tax on the full price at final closing, which includes what they paid you, not just the builder price. In Toronto, municipal land transfer tax applies too.

If the unit is worth less than you agreed to pay, assigning may not be the answer. Closing and renting, closing and reselling, or negotiating with the builder can each be better. I will show you all three with real numbers.

Tell me about your assignment

Buying or selling. About a minute.