An assignment sale is the transfer of a buyer’s contractual rights under an Agreement of Purchase and Sale to a new purchaser before the original transaction closes. The assignor transfers their interest in the contract — not the property itself — to the assignee, who steps into their position and assumes their obligations. Assignment sales are most common in pre-construction condo and freehold transactions.

It depends on the terms of your Agreement. Many pre-construction agreements contain an assignment clause that either permits assignment with developer consent, restricts it to specific circumstances, or prohibits it entirely. You must review your Agreement before attempting to assign. Proceeding without developer consent where consent is required can constitute a breach of the original Agreement with serious consequences.

Generally no. Most real estate boards, including TRREB, do not permit assignment sales to be listed on MLS or REALTOR.ca. Assignment sales are typically marketed privately or through internal agent networks. Always confirm the assignment clause and developer consent requirements before marketing — marketing an assignment without proper authorization can create legal complications.

Yes, in most cases. Since May 7, 2022, HST applies to profits earned on the assignment of new residential properties in Ontario. This applies regardless of whether the assignor is a builder or an individual. Both parties should obtain tax advice before entering into an assignment transaction to understand their respective obligations and ensure the assignment agreement addresses HST correctly. Failure to account for HST can result in unexpected liability for either party.

Potentially yes. Unless the developer expressly releases you from the original Agreement, you may remain liable to the developer if the assignee fails to close. This is one of the most important and frequently misunderstood aspects of assignment sales. We structure the assignment agreement to protect the assignor’s position as much as possible, and negotiate with the developer for a release where available.

Under section 73 of the Condominium Act, 1998, a buyer of a new condominium unit in Ontario has ten calendar days from the date of receipt of a signed Agreement of Purchase and Sale and disclosure statement to rescind the contract without penalty and recover their full deposit. The right applies for any reason — no justification is required. The 10-day cooling-off right applies only to new condominium purchases; pre-construction freehold homes do not benefit from the same statutory window. A new 10-day rescission right can also be triggered if the builder materially amends the disclosure statement during construction.

Under the Ontario New Home Warranties Plan Act, every new home and condominium unit built by a registered Tarion builder is covered by a statutory warranty structured in three bands. The one-year warranty covers defects in workmanship and materials, unauthorized substitutions, and Ontario Building Code violations. The two-year warranty covers water penetration through the building envelope, defects in the electrical, plumbing, and heating distribution systems, defects in the exterior cladding, and Building Code violations affecting health and safety. The seven-year warranty covers major structural defects — defects causing failure of a load-bearing component or materially affecting the use of the building as a home. Each warranty band has its own statutory claim form and deadline, and missing a deadline can permanently extinguish your warranty rights.

Interim occupancy is a period unique to pre-construction condominium purchases during which the buyer occupies the unit before the condominium corporation is registered with the Land Titles Office. Title cannot transfer to the buyer until registration occurs. During interim occupancy, the buyer pays monthly occupancy fees to the builder — not a mortgage. Occupancy fees are made up of three components: interest on the unpaid balance of the purchase price (calculated at a rate set out in the Agreement), an estimate of the unit’s share of monthly common expenses, and an estimate of monthly municipal property taxes. Interim occupancy can last anywhere from a few months to several years depending on the project. Final closing — at which point title transfers and a mortgage replaces the occupancy fees — occurs when the condominium corporation is registered.

Pre-construction Agreements set out a tentative occupancy date, a firm occupancy date (which the builder can extend within set parameters), and an outside occupancy date beyond which the buyer typically has a statutory right to terminate the Agreement and recover all deposits with interest. Builders are also required under Tarion’s delayed closing/occupancy coverage to compensate buyers for certain qualifying delays — up to statutory caps and subject to strict notice requirements. The exact remedies depend on the specific Agreement, any amendments to the disclosure statement, and the type of unit (condominium versus freehold). If the outside date is reached, we advise on whether termination is the right strategy and prepare the necessary notices.

The pre-delivery inspection is your structured walk-through of the unit with the builder before you take possession. The deficiencies you record on the PDI form are filed with Tarion and form the baseline for your Tarion warranty rights — particularly the 30-Day Form, which captures everything visible at the start of possession. Items not documented on the PDI are significantly harder to claim later. We advise on what to look for, how to describe deficiencies in a way that preserves your warranty rights, and how to ensure the form is correctly filed with Tarion. The PDI is one of the most important — and most overlooked — steps in a pre-construction purchase.