The real estate sector is one of the most powerful aspects of an economy. If you are trying to look for condos in Canada, you will often come across the term “assignment sale” due to a surge in its popularity. However, it is an off-grid real estate transaction and is much different from conventional deals. Are you trying to crack the nut with new condos on assignment sale? There are so many things you need to know before moving ahead with the buying option.
Typically, an assignment sale is one in which the original buyer offers a deal to another buyer to acquire over their equity. The deal takes place when the original buyer completes the closing formalities and the second buyer tries to seal the deal. Overall, an assignment sale is buying a pre-construction condo unit. As the building is not registered, none of the parties can transfer the title. However, you can sell the contract and finally sell the property with the title once the building registers.
Understand The Assignment Process:
Once you invest in a pre-construction condo, you will receive an assignment clause similar to the contract. You can sell the condo unit even before the completion of work. Here is how:
- Typically, the assignee does not buy the property from the assignor; instead, they will get the right to acquire the condo from a thirdparty.
- The assignee keeps the rights within the contract with the builder
- For the assignment process, the one buying the property needs to sign the agreement of purchase and sale.
If you are searching for new Kelowna condo developments, be sure to understand the assignment process before moving ahead with the deal.
How To Buy A New Condo On Assignment Sales?
Have you fixed the Kelowna condo you want to buy? Here are ways to make assignment sales more effective.
- Note the closing date
When buying the condominium on assignment sale, you must check the following dates:
- The assignment closing date is when you complete the sale transaction with the original buyer.
- The closing date of occupancy is the first date of closing when you get the keys from the builder
- The final date of closing is when the property title is transferred to the name of the buyer.
- The date of closing the assignment sale is when you buy a new unit before or after the date of occupancy closing.
- Getting The Consent Of The Builder
The approval of the builder is one of the prime aspects you cannot skip. It is essential to complete the assignment sale transaction. For instance, the builder may not agree if the date of the sale lies around the final date of closing. The building company needs to make sure about the name in the condo title.
- Different From Buying A Resale Condo
If you are into an assignment sale transaction when buying a new condominium, you will naturally acquire the title. You may be the buyer of the unit but the ownership comes later. It comes only after the final date of closing, unlike conventional sales.
- Get Mortgage Approval
You need to provide proof of having adequate funds to let the builder know that you can afford the deal. Unless you are eligible for a mortgage, investing in Kelowna luxury real estate may bring harrowing times. At Justin O’Connor Group, you will come across some prime and authentic listings of condominiums. They are one of the best listing agents you can trust in Kelowna.
- Never Rush For The Deal
It is natural for buyers to rush into deals. But an easier way of making the deal smooth is considering all the aspects.
Reasons To Invest In An Assignment Condominium Sale
Buying an assignment condominium with Sotheby’s Kelowna lets you acquire an excellent deal. Find out why you may consider this option:
- Get a new condo without waiting for years
- They usually have a big inventory from where you can pick the property. Moreover, you can get the best properties at comparable rates.
- It is a wise decision to search for new condo developments Kelowna and invest when the market is hot. The competition is lesser than at other times.
- You need not worry about the cancellation of the project. Getting a property for assignment sale implies that the project has already taken off.
Hiring a reputed realtor who is well-versed in assignment sales is necessary. A professional, aids the smooth progress of the transaction. An assignment sale comes with complicated paperwork, so trust only registered realtors and listings agents for assistance.