How do condo assignments work?

[Sammy.March]

What is the process and what are the costs involved?

 

[takefive]

This might help.
http://www.assignthiscondo.com/

 

[Yossi Kaplan MBA]

Condo Assignments

Assignments are first and foremost, transfer of right to purchase (buying the contract). Here is the simplified version:

Let's say you purchased a unit a couple of years back and for some reason you wish to sell it before the building registers (i.e. prior to mortgage assumed).

You or your Agent have to find a buyer that will agree to buy the contract off you. You will have to agree on price the buyer , or Assignee, will be willing to pay you.

The contracts are drafted, lawyers review and monies transferred. Once that's done you need to have the builder sign the Assignment documents, officially transferring your name out of the contract and the buyer's name into it.

There are many variations on the subject, but in all cases you need to understand that the Assignor will be held responsible for the purchase in case the Assignee did not fulfill their part of the contract, so it's very important to find a qualified buyer that will go ahead with the purchase (or else you are in trouble).

yk.

 

[Sammy.March]

I'm assuming it would make sense to get a hefty deposit up front too...a bit more secure??

 

[MissEgoGrande]

Assignments are first and foremost, transfer of right to purchase (buying the contract). Here is the simplified version:

Let's say you purchased a unit a couple of years back and for some reason you wish to sell it before the building registers (i.e. prior to mortgage assumed).

You or your Agent have to find a buyer that will agree to buy the contract off you. You will have to agree on price the buyer , or Assignee, will be willing to pay you.

The contracts are drafted, lawyers review and monies transferred. Once that's done you need to have the builder sign the Assignment documents, officially transferring your name out of the contract and the buyer's name into it.

There are many variations on the subject, but in all cases you need to understand that the Assignor will be held responsible for the purchase in case the Assignee did not fulfill their part of the contract, so it's very important to find a qualified buyer that will go ahead with the purchase (or else you are in trouble).

yk.

Also, check if there's an assignment fee - I know Lanterra charges $5000 assignment fee. So let's say you bought a condo for $300K and now want to assign it someone else and you sold it for $280K, then you will be losing $25K plus legal fees. If you sell it above $305, then you most likely will profit from the deal.