Real Estate

When can one sell preconstruction on assignment?

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  • Nov 18th, 2017 6:37 pm
Newbie
Nov 9, 2017
22 posts
10 upvotes

When can one sell preconstruction on assignment?

I bought a unit at Peter and Adelaide condo but I may move to the US for employment, the APS has the following condition: Assignment can only be approved after confirmation of 90% sales of all residential units from builder and the purchase is firm! However, there are several conditions for early termination including zoning approval, builder obtain financing in their own satisfaction. So does that mean that untill all these conditions of termination are satisfied, I cannot assign the units? The date set for these early termination conditions are quite late, with the latest conditions need to be satisfied by 2020! The 90% sales of units are quite likely already satisfied at this time.
4 replies
Deal Guru
User avatar
Feb 2, 2014
11231 posts
3350 upvotes
Toronto
You should be able to sell it now then. They simply don't want assignments to flood the market when they still have units to sell. I've seen builders try to sell units only to be undercut by assignments, and as a result, couldn't sell and had to drop prices.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Newbie
Nov 9, 2017
22 posts
10 upvotes
CdnRealEstateGuy wrote: You should be able to sell it now then. They simply don't want assignments to flood the market when they still have units to sell. I've seen builders try to sell units only to be undercut by assignments, and as a result, couldn't sell and had to drop prices.
So you mean as long as builder sold 90% then I can do assignment? How about the condition of a firm contract?
Deal Guru
User avatar
Feb 2, 2014
11231 posts
3350 upvotes
Toronto
They just mean it's firm and there are no condition with the APS (ie 10-day cooling off period).
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
Dann384476 wrote: I bought a unit at Peter and Adelaide condo but I may move to the US for employment, the APS has the following condition: Assignment can only be approved after confirmation of 90% sales of all residential units from builder and the purchase is firm! However, there are several conditions for early termination including zoning approval, builder obtain financing in their own satisfaction. So does that mean that untill all these conditions of termination are satisfied, I cannot assign the units? The date set for these early termination conditions are quite late, with the latest conditions need to be satisfied by 2020! The 90% sales of units are quite likely already satisfied at this time.
That's correct that's what it means but unless they haven't yet moved any dirt it's unlikely they haven't already passed the zoning qualifications they need. As for their financing that may be a separate issue.

The only way to know is to seek their permission to assign as the conditions may already be a moot point and they can't withhold it unless one or more of those conditions are outstanding.

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