Assignment sale

An assignment sale is the sale of a purchase contract, not a property. The original buyer of a preconstruction home — the assignor — sells their rights and obligations under the agreement of purchase and sale to a new buyer, the assignee, before the deal closes with the builder. The assignee steps into the contract, closes with the developer, and takes title; the assignor exits, usually recovering deposits plus whatever premium the market has added since signing.

How these deals actually trade

Everything runs through the original agreement. Most builder contracts bar assignment without developer consent, attach a consent fee, and — critically — restrict where an assignment may be advertised, with public marketing and MLS exposure often limited or forbidden. That makes assignments a quiet market that moves through agent networks and buyer lists rather than open listings. The price has three components: reimbursement of deposits paid, the original purchase price the assignee will still owe the builder, and the premium (or, in a falling market, discount) negotiated between the parties. In Ontario condos, assignments frequently trade before interim occupancy begins, because many agreements make assignment harder or costlier once occupancy starts.

The tax reality

Two regimes reach assignment sales, and both surprise first-timers. Since a 2022 federal change, GST/HST applies to assignment sales of new or substantially renovated homes by individuals — priced into the deal or eaten by the assignor. And assignment profits are generally taxed as income rather than capital gain, with the federal home flipping tax rules — and BC’s provincial version — potentially applying to short holds. New-home warranty coverage, meanwhile, follows the home to the assignee under programs like Tarion in Ontario. None of this kills a deal; all of it belongs in the math before an assignor lists.

Why it matters for your marketing

Assignments are a specialist’s market: BC calls the underlying product a presale, Ontario says preconstruction, and in both provinces the agents who win this niche are the ones whose websites explain consent, advertising restrictions, and tax honestly. Because public advertising is often restricted, the asset that actually moves assignments is a database — a site that captures preconstruction buyers and investors into your CRM is the pipeline this niche runs on.