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[OP]
Deal Addict
Dec 1, 2009
1070 posts
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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 Fanatic
Mar 27, 2004
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Toronto
You need builder approval for assignments. You won't be allowed to change the name on the purchase agreement without it.
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Deal Guru
Feb 9, 2009
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jeffdude87 wrote: 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]
Deal Addict
Dec 1, 2009
1070 posts
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Mississauga
oasis100 wrote: 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
Aug 11, 2005
4175 posts
1427 upvotes
The builder likely won't agree to the mutual release seeing as how preconstruction prices have fallen massively.
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[OP]
Deal Addict
Dec 1, 2009
1070 posts
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Mississauga
Luckyinfil wrote: 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?
Member
Mar 6, 2017
382 posts
259 upvotes
jeffdude87 wrote: 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
Aug 11, 2005
4175 posts
1427 upvotes
jeffdude87 wrote: thats why wondering any work around for it?
Sell it to someone with the same name
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Deal Addict
Mar 14, 2006
1588 posts
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Toronto
jeffdude87 wrote: 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
2463 posts
1372 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]
Deal Addict
Dec 1, 2009
1070 posts
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Mississauga
burnt69 wrote: 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?
Member
Mar 6, 2017
382 posts
259 upvotes
jeffdude87 wrote: 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.
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Sep 8, 2007
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Way Out of GTA
jeffdude87 wrote: 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.
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Feb 2, 2014
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jeffdude87 wrote: 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
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
Jan 15, 2010
1189 posts
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Toronto
What if you offer the builder a fee to assign, one that is less than the deposit you would lose? Cut your losses so to speak.
[OP]
Deal Addict
Dec 1, 2009
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Mississauga
DaMan12 wrote: What if you offer the builder a fee to assign, one that is less than the deposit you would lose? Cut your losses so to speak.
Builder said they wont make ammendment to contract
Newbie
Oct 20, 2017
31 posts
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Ontario
I don't know if it'd be an option for you, but could you close and obtain a fully-open or short-term mortgage and then attempt to sell down the road?
Deal Addict
Feb 15, 2012
3561 posts
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Toronto
Luckyinfil wrote: The builder likely won't agree to the mutual release seeing as how preconstruction prices have fallen massively.
which precon prices have fallen? all the ones in the core and by the lake are all >1000psf

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