chkolnikea
New Member
Hello everyone,
I hope you can lend me some of your experience on a purchase I want to make (I am from Toronto, just FYI). I am looking to buy an assignment for a pre-construction condo that should occupy in 4 months, and close (estimate) in 8 months.
The builder does not allow assignments (at least they dont approve them).
What the seller is offering me is to add my name to the Purchase and Sale agreement at the builders office. And he will also sign an assignment agreement between us (but not builder).
In return he wants his deposit and 50% of the profit, with the remaining 50% when I close on the unit.
Can someone help answer these few questions for me?
1. What does adding my name to the P&S contract give me legally speaking?
2. With my name on the P&S will I be able to take title upon closing or will the original person have to close and then resell to me?
3. Would you advise against such a transaction because of a lack of consent from the builder?
My biggest concern is that I give up $100,000, then the seller leaves the country (theoretical risk), and I would be stuck with nothing. In such a case would I have rights to the unit as my name is on the P&S and I have an assignment agreement?
Thank you very much for your help, this deal could close as soon as this/next week!
- Guy
I hope you can lend me some of your experience on a purchase I want to make (I am from Toronto, just FYI). I am looking to buy an assignment for a pre-construction condo that should occupy in 4 months, and close (estimate) in 8 months.
The builder does not allow assignments (at least they dont approve them).
What the seller is offering me is to add my name to the Purchase and Sale agreement at the builders office. And he will also sign an assignment agreement between us (but not builder).
In return he wants his deposit and 50% of the profit, with the remaining 50% when I close on the unit.
Can someone help answer these few questions for me?
1. What does adding my name to the P&S contract give me legally speaking?
2. With my name on the P&S will I be able to take title upon closing or will the original person have to close and then resell to me?
3. Would you advise against such a transaction because of a lack of consent from the builder?
My biggest concern is that I give up $100,000, then the seller leaves the country (theoretical risk), and I would be stuck with nothing. In such a case would I have rights to the unit as my name is on the P&S and I have an assignment agreement?
Thank you very much for your help, this deal could close as soon as this/next week!
- Guy