TORONTO CONDO ASSIGNMENTS
The TORONTO CONDO MARKET HAS EXPLODED OVER THE LAST 10 YEARS... Toronto is known to be one of THE HOTTEST CONDO MARKETS IN NORTH AMERICA! CONDO ASSIGNMENTS have become very common as Buyers or Assignors look to flip or ASSIGN their TORONTO CONDO to gain some huge returns on their DEPOSITS.
New CONDO developments often take 3-5 years on average to be completed from the time the buyer signs the Builder Purchase Agreement to the time the buyer takes title on the CONDO.
During the period between purchasing and final title - many investors look to gain huge returns by "SELLING/ASSIGNING/FLIPPING" the condo before the building is registered.
The First BUYER is selling their rights, interests and obligations to the Builder Purchase Aagreement to a Second BUYER called an ASSIGNEE. The original Builder Purchase Agreement will stipulate the rules, conditions and applicable fees (if any), in order to allow or disallow the condo assignment.
KNOW WHAT YOU ARE BUYING, IF YOU CAN REASSIGN IT AND HOW MUCH THE BUILDER WILL CHARGE AS AN ASSIGNMENT FEE!
WHAT IS AN ASSIGNMENT?
By Definition... A CONDO ASSIGNMENT is a bonafide transaction whereby the First Buyer (the "ASSIGNOR") sells or transfers their rights, interests and obligations under the original contract to a new or Second Buyer ( the "ASSIGNEE").
Typically the Builder will allow the assignments to occur when approximately 85% of the development is sold. This protects the value of the development for the builder and also the value of the condos which have already been sold to Buyers. The Builder's Purchase Agreement also states the conditions underwhich the condo can be flipped or not! Also normally the builder stipulates that the assignment can not be posted on MLS. The assignment if it is allowed then resembles an exclusive listing which is sold outside of the public MLS.ca domain.
We have sold many exclusive ASSIGNMENTS representing both assignors and assignees. We also network with many other top producers to provide DIAMOND SERVICE to our clients helping them either sell their interests or buy into a project that sold out quickly before they could buy from the builder.
CONDO ASSIGNMENTS normally occur just before or after INTERIM OCCUPANCY which is the first closing on a new condo.
The Builder usually charges an ASSIGNMENT fee which could either be paid by the ASSIGNOR (first buyer) or ASSIGNEE (second buyer).
When an Assignment is complete, then the ASSIGNEE will assume all of the ASSIGNOR'S Rights, Duties and Obligations under the Original Purchase & Sale Agreement.
Quite often we will flip or reassign a Toronto condo right before the buyer needs to make their final color and upgrade choices. The second buyer or ASSIGNEE gets to pick their own upgrades of finishes!
As Top Producers and VVIP's in New Construction, when we represent your interests to a builder... quite often the Builders allow us to pass along huge incentives not available to the public including REDUCED or ELIMINATED ASSIGNMENT FEES which are typically $5,000 + HST or higher.
ADVANTAGES OF ASSIGNMENTS
There are advantages to both the First Buyer (ASSIGNOR) and the Second Buyer (ASSIGNEE):
BENEFITS TO ASSIGNORS: Typically the first Buyer can double or triple their original deposit and see huge gains in net profit. The Toronto Condo Market has seen considerable growth over the last 8-10years.
For Example, Buyers in 2006 were paying $350k for a downtown 2 bedroom condo with 20% down or $70k. When we flipped those condos for them 4 years later in 2010, the same condo was worth approximately $480k giving them a gain of $130k.
Assignors pulled out their original deposits of $70k paid in 2006 plus a gain of $130k. This gain far exceeded average performances on the stock market and mutuals market.
The Assignors also saved money on Closing Costs including Occupancy Fees, Property Taxes and Development Fees.
We can help ASSIGNORs assess the true value of their investment based on current value of flips and Toronto Condo resale values!
We can do an expert complimentary market analysis on your real estate investment!
BENEFITS TO ASSIGNEES: Many hot new developments sell out virtually overnight. Quite often a project is sold out by us the VVIP's before it gets out to the normal agents or public. Assignees can gain access to a building or new development after it is sold out!
Buying an Assignment could mean saving some money!
Usually buying an ASSIGNMENT could mean savings to the ASSIGNEE because they are buying a condo in a new building where the value has not yet matured due to the fact that the common elements might not be totally completed.
Quite often, the ASSIGNEE can still pick their own upgrades, colors and finishes. Builders sometime allow assignments to occur just before color selection or a year before occupancy.
Sometimes the ASSIGNEE can benefit from a land transfer law that is grandfathered. For Example, some of the flips we negotiated were condos sold from the builder to the first buyer or ASSIGNOR in 2006 when the Toronto Land Transfer Tax was not in place. These flips were not subject to the TLTT at time of closing and the ASSIGNEE only paid the Provincial Land Transfer Tax benefitting from approximately 1.5% on closing costs.
ASSIGNEES may also benefit from the incentives and discounts originally provided in the Builder's Agreement of Purchase and Sale signed by the first buyer. For Example, if the original purchase agreement offers a discount on price, cash rebate at closing, reduced parking and locker prices or promotional vouchers at time of closing - the assignee may benefit from these schedules attached to the original Purchase Agreement.
Know what you are buying or what you can ask for!
We have negotiated many Toronto condo flips over the last 8 years and we can represent your best interests!
ASSIGNING YOUR CONDO
Condo ASSIGNMENTS can be tricky so it is imperative you work with BROKERS who have EXPERIENCE and are familiar with CONDO ASSIGNMENTS!
Many realtors say they know how to flip condos, most don't know the mechanics of a condo flip or how it works - but WE DO!
EXPECT DIAMOND SERVICE on your CONDO ASSIGNMENTS!
WE HAVE 8 YEARS EXPERTISE IN PRE-CONSTRUCTION CONDO SALES & FLIPS!
CALL US TODAY!
REGISTER HERE FOR VIP ACCESS:
SOPHIE FRATTURA, BROKER, CELL 416-526-1157
LINDA HUMMEL, BROKER, CELL 416-931-3946