Question 1

What is a presale assignment?

Accepted Answer

A presale assignment refers to selling or transferring a presale property from the original buyer (Assignor) to someone else (Assignee) before its completion date. An assignment is usually available when: 1) All the units in the development have been sold out, and 2) The original buyer of the unit has received consent from the developer to sell as an assignment (with applicable fees up to 2-3% of the original purchase price)

Question 2

Is it worth it to buy an assignment?

Accepted Answer

If you want to buy a home from specific presale developments, but the units you wanted were sold out before you got to it, buying an assignment from the same developments may be the solution for you. If you wait for units to list on the market after the development is complete, the purchase price may be much higher depending on the market value and demand.

Question 3

What is the cost of buying a presale assignment?

Accepted Answer

When you buy a presale assignment, you’ll need to pay all required deposits upfront when you sign an assignment contract. You should be expected to pay a higher price than the original purchase price as the original buyer (Assignor) needs to pay 2%-3% of the purchase price to the developer in order to sell it to you. In many cases, the Assignor would want to make a profit off the sales as well. Lastly, just like buying any other properties, you should consider legal fees and other closing costs into your budget.

Question 4

What does the term 'lift' mean in presale assignment?

Accepted Answer

Lift refers to the balance of the assignment amount, which means the amount the original buyer (Assignor) gets paid to assign the contract to the new buyer (Assignee).

Question 5

I'm interested in selling my presale contract, what should I do?

Accepted Answer

Most developers in BC allow assignments after all the units in the development are sold. When this condition is met, the unit owner must: 1) Get a written consent to assign your unit from the developer 2) Pay an 'assignment fee' (usually 2%-3% of the original purchase price) to the developer. You can then try to sell your contract as an assignment. Get in touch with YouLive and we’ll help you find the best buyer!

You may also like