What are my options

[Rocky]

Hello all, back in 2008 I signed up for a pre-construction condo at a VIP event and purchased one of the units i liked at the time. Over the time my family situation has changed and that place is just not going to be big enough for us all any more. I cannot sell the condo prior to getting the occupancy / registration of the building etc as the builder does not have an assignment clause in the contract.

I am wondering, what are my options or what is the best thing to do. Anticipated completion date is 2012. Is it wise for me to get the condo and try to sell it after ? that means i would have to have the mortgage etc all set for it and sell it right after, means i might have to get out of my mortgage term (as i do not plan to keep that condo long term) due to it not being a place where i want to live any more. This would mean i am accruing the cost of ownership till i sell it etc.

or is there another way to some how get the condo on the market before title gets transferred to me and i get the occupancy ?

What would be more cost effective and smart way to deal with this situation, I am looking for any expert advise from users at Urban Toronto, This is my first time buying a home and i would want to not commit any mistakes (as i think i have already done a mistake by not being able to see far enough in the future and purchasing a pre-con condo thats smaller than what i need).

I would like to loose as less money as possible if i have to loose any at all. In an ideal situation i would be able to sell the condo and get the money i put down etc, however i am also not sure how long it might be before i get to sell this condo after i get the occupancy and get my $$ back.

Thank You all in advance, excuse any lame terms if you find any as i am new to real estate etc

 

[NikoS]

Pre-construction contracts typically have an assignment clause - assignment means transfer of the right to the Purchase and sale agreement. You need to have your lawyer ask the developers lawyers. There is typically an assignment fee and use of MLS is sometimes restricted. I went through assignment once on a unit. My agent sold it in two months.

 

[Rocky]

Pre-construction contracts typically have an assignment clause - assignment means transfer of the right to the Purchase and sale agreement. You need to have your lawyer ask the developers lawyers. There is typically an assignment fee and use of MLS is sometimes restricted. I went through assignment once on a unit. My agent sold it in two months.

Its a monarch pre-con and i was told the builder isnt flexible at all to let people add assignment clause, but i will check with my lawyer to connect with the builders lawyer for sure. Is there usually a fee associated if they were to make such an exception. Thanks for responding Nikos.

 

[NikoS]

I haven't purchased with Monarch before but its worth a try. There is a fee with assignments, typically a couple thousand dollars.

 

[Catapult]

Hmm - I'm surprised there is no assignment clause. My understanding is that unless there is a clause that says you cannot assign then you can assign. Check with your lawyer.

 

[Rocky]

In my point of view all businesses are beneficial if they are running with profits and all those business are not considered good if they runs but in loss. Start a business with reasonable margin and minimum risk.
I agree with your approach to know about the real estate property as a have experience in these areas of the business but in recent environment the business not looking good.

What the heck has this post got to do with the originally posted topic of this thread !? confused !!!

 

[simuls]

What the heck has this post got to do with the originally posted topic of this thread !? confused !!!

It's just spam, ignore it. I'd hold onto the property, close it out when the time comes (see if you can get a renter for the interim occupancy period), and then sell when final closing occurs. If you're selling because your life situation has changed (and you don't own another property at the time) you won't have to pay capital gains tax (if there is a gain).

 

[Kenny]

Why not just keep the condo and rent it out?

 

[Catapult]

Why not just keep the condo and rent it out?

This is what I was thinking. Chances are you'll have some equity in the place that you can use as a downpayment on a new bigger place. If you've put 20-25% down then your rent should just about cover your costs.