[Blog #29]: What Is An Assignment Sale?

In today's blog, I will be writing about what an Assignment Sale is. There are many ways to make money in Real Estate especially in the Toronto Real Estate Market. There are opportunities for buyers to get in for cheaper as well as opportunities for sellers to cash out big time.

Let's break down what an assignment sale is. An assignment sale is someone who purchased a pre-construction condo a few years back and is deciding now that they want to flip it because either the condo doesn't fit their lifestyle anymore or they want to cash out their profits. Assignment deals can get tricky and it is not the same as the resale market because assignment listings typically cannot be advertised on the MLS (Multiple Listing Service). Builders have a clause in the original agreement of purchase and sale stating you are not allowed to advertise or list your condo unit for sale or they can forfeit your deposit and take the unit back from you.

Make sure you are dealing with a proficient assignment agent when flipping your unit on assignment or you can end up in big trouble!

Flipping your unit can be a great way to make money in real estate as you can sell your unit before the building is ready for occupancy, cash out your profits, not pay closing costs and not assume a mortgage. But you have to make sure you understand the costs involved in flipping first before you decide to take that route. I will break down the costs in the near future on another blog post!