When you buy an assignment you step into someone else's contract with the developer. You inherit their purchase price, their deposit schedule, their completion date and their contract terms — good and bad. You are not negotiating with the developer; you are negotiating with the original buyer, and then asking the developer to approve you.
That is often a genuine opportunity. Assignments can price below the developer's current list, and in a sold-out building an assignment may be the only way in at all. But it needs a different set of checks than a direct presale purchase.
Before you write an offer I want to see the original contract and the Disclosure Statement with every amendment, confirm what deposits have actually been paid and are being transferred, confirm the developer will consent and what fee applies, confirm the current completion estimate rather than the original one, and settle in writing who is paying the GST on the assignment amount.
Financing is where these deals most often fall apart. Lenders treat assignments differently from a direct developer purchase: some will not touch them, and many will only lend against the original contract price rather than what you are paying. Talk to a broker who has actually funded assignments before you remove conditions.
This is general information, not legal, tax or accounting advice. Assignment sales have real tax consequences — talk to a lawyer and a CPA who work in BC real estate before you sign anything.
It can be, with proper review. You are inheriting the original buyer's contract exactly as written, so the risk sits in the terms and in the deposit chain rather than in the concept. Verify the deposits actually paid, get the developer's written consent, and have a lawyer review the assignment agreement before you commit.
Because the price you pay and the price in the original developer contract are two different numbers. Many lenders will only base their loan on the original contract price, which means the uplift you are paying has to come from your own funds. Some lenders decline assignments entirely. Confirm financing before removing conditions.
It is negotiable, but in most assignment contracts the buyer pays the 5% GST on the assignment amount — the uplift — not on the full purchase price. Get it written into the contract rather than assumed.
Almost always yes. The developer must consent in writing, and they typically charge an assignment fee. Some restrict how many times a unit can be assigned. The consent is a condition of the deal, not a formality.
Sometimes. In a softer market an assignor who needs out may sell below the developer's current price. In a strong market or a sold-out building the assignment may cost more. It is worth comparing both before you assume either.
Call or text me directly at +1 (778) 231-3592, or book a free 15-minute call. I represent buyers and assignors — never developers.