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  • Feb 16th, 2018 2:20 pm
[OP]
Sr. Member
Dec 1, 2009
831 posts
102 upvotes
Mississauga

pre construction

hi just wondering has any one had any experience of cancelling or reselling pre construction home even though it doesn't have assignment clause?
33 replies
Deal Addict
Mar 27, 2004
2492 posts
239 upvotes
Toronto
You need builder approval for assignments. You won't be allowed to change the name on the purchase agreement without it.
Realtor - Platinum award winner.
Deal Fanatic
Feb 9, 2009
5848 posts
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jeffdude87 wrote:
Feb 12th, 2018 10:00 pm
hi just wondering has any one had any experience of cancelling or reselling pre construction home even though it doesn't have assignment clause?
Why you selling?
[OP]
Sr. Member
Dec 1, 2009
831 posts
102 upvotes
Mississauga
oasis100 wrote:
Feb 12th, 2018 10:02 pm
You need builder approval for assignments. You won't be allowed to change the name on the purchase agreement without it.
Asked builder to do mutual release . he mention that buyer will loose deposit. Anyother work around to get money back?
Penalty Box
User avatar
Aug 11, 2005
3704 posts
1059 upvotes
The builder likely won't agree to the mutual release seeing as how preconstruction prices have fallen massively.
google NotDoug
[OP]
Sr. Member
Dec 1, 2009
831 posts
102 upvotes
Mississauga
Luckyinfil wrote:
Feb 13th, 2018 12:12 pm
The builder likely won't agree to the mutual release seeing as how preconstruction prices have fallen massively.
thats why wondering any work around for it?
Jr. Member
Mar 6, 2017
150 posts
56 upvotes
jeffdude87 wrote:
Feb 13th, 2018 12:07 pm
Asked builder to do mutual release . he mention that buyer will loose deposit. Anyother work around to get money back?
you said there's no assignment clause... so it's best to talk to a lawyer and go over it and see if you have the right to assign

if it's a small deposit like $5000 you can just walk away but builder may still sue you
Penalty Box
User avatar
Aug 11, 2005
3704 posts
1059 upvotes
jeffdude87 wrote:
Feb 13th, 2018 12:16 pm
thats why wondering any work around for it?
Sell it to someone with the same name
google NotDoug
Sr. Member
Mar 14, 2006
755 posts
328 upvotes
Toronto
jeffdude87 wrote:
Feb 12th, 2018 10:00 pm
hi just wondering has any one had any experience of cancelling or reselling pre construction home even though it doesn't have assignment clause?
You are out of luck....
Deal Addict
Oct 6, 2015
1300 posts
684 upvotes
You certainly can sell a pre-construction contract, but you can't get yourself released from the legal obligation surrounding it in the event that the person you sold the contract to defaults.

So if you're going to sell a pre-construction and remain on the hook, you better make sure that you can enforce performance on the original contract.
[OP]
Sr. Member
Dec 1, 2009
831 posts
102 upvotes
Mississauga
burnt69 wrote:
Feb 13th, 2018 1:58 pm
You certainly can sell a pre-construction contract, but you can't get yourself released from the legal obligation surrounding it in the event that the person you sold the contract to defaults.

So if you're going to sell a pre-construction and remain on the hook, you better make sure that you can enforce performance on the original contract.
howto sell pre construction contract?
Jr. Member
Mar 6, 2017
150 posts
56 upvotes
jeffdude87 wrote:
Feb 13th, 2018 9:59 pm
howto sell pre construction contract?
you're going to have to hire an agent who has experience with assignments if you have don't know how to assign builder agreements. If you bought a condo, chances are you can break even after all the costs or make some money depending where you bought it but if you bought a house you may end up losing money if you try to assign it now.

My suggestion is to find someone who will look out for your best interests... these are situations where some bad people try to take advantage... I've talked to some people who've been sucked into private lender mortgages paying an extremely high interest rate and obscene amounts of fees.
Deal Fanatic
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Sep 8, 2007
5346 posts
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Way Out of GTA
jeffdude87 wrote:
Feb 13th, 2018 12:07 pm
Asked builder to do mutual release . he mention that buyer will loose deposit. Anyother work around to get money back?
Seems popular thing to do is go complain about big bad builder to CBC or the Star. They will be all over you. Don't forget to add something in like your dog passed away and you were going thru a real hard time at the time, and builder made you sign under duress (after lining up all night to book a house).

Leave out mention of the new bigger yacht you just bought for the vacation property in Muskoka.
Deal Addict
Feb 2, 2014
4762 posts
972 upvotes
Toronto
jeffdude87 wrote:
Feb 12th, 2018 10:00 pm
hi just wondering has any one had any experience of cancelling or reselling pre construction home even though it doesn't have assignment clause?
Are you certain they don't allow assignments?
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative

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