Toronto’s real estate market, it never seems simple, does it?
Within this dynamic and unique market we call Toronto Real Estate, buyers and investors are always on the lookout for the latest trends and opportunities, in an attempt to find the slightest edge in an incredibly competitive and efficient landscape.
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One question that has been asked to me recently a number of times, and is so often top of mind for many is, “Are assignment sales still happening in Toronto real estate?” I asked this question last week to a handful of different folks in the office, and interestingly I had answers varying from a resounding yes, to a tepid no.
So what’s the truth? First, we need to understand what an assignment sale is, and where it’s most commonly used in this city. From there we can shed light on how and why they continue to be a relevant and viable option for both buyers and sellers. Because the answer to the initial question posed is a simple one” “Yes, assignment sales are still happening in Toronto Real Estate.”
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In real estate, an assignment sale refers to a transaction where a buyer transfers, or assigns, their rights and obligations under an already agreed upon purchase agreement to another unique buyer before the closing of the property. Essentially, the initial buyer, who holds a contractual agreement to purchase a property, opts to sell or transfer that agreement, and ultimately the property itself upon closing, to a new buyer.
In Toronto, this most commonly occurs in the context of pre-construction sales, where the property is sold before the development is completed, registered, and the transaction is closed. The new buyer assumes the rights and responsibilities outlined in the original purchase agreement, including the agreed-upon price and any associated terms, most relevant being any outstanding closing costs. Assignment sales offers flexibility for the original buyer to position out of the contract, and for the new buyer, it presents an opportunity to acquire a property that may have been previously unavailable or sold out in the primary market.
Do you have questions about buying or selling real estate in Toronto? We’re happy to help. Give us a call today at 416.642.2660 or email us directly at admin@torontorealtygroup.com.
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