Things can shift rapidly in life, for better or worse. The Agreement of Purchase and Sale includes a no-assignment clause for the security of both the original purchaser and the developer. It normally takes about four to five years to finish building a condo from the ground up, and even longer for a high-rise complex. These apartments are put up for sale well in advance of when the building really begins.

George, a bachelor of 27 years, has a career in the medical sciences. He has worked hard and saved enough money to put a down payment on an apartment in a new downtown Toronto development that will have 30 stories when it is finally finished four years from now.

After putting down a down payment and signing the purchase agreement, George is free to carry on with his single life and thriving profession as a proud future homeowner.

Imagine that two years from now, George receives a job offer in a different city, meets a wonderful new person, and envisions a bright future with them both. Or perhaps his financial situation has taken a turn for the worse, and he no longer qualifies for a mortgage and desperately needs the pre-construction condo unit.

It’s also possible that George is an investor with extensive knowledge of the local real estate market. He invests in pre-construction unit contracts, then, when the time comes, lists the apartments for sale as assignment sales through real estate agents. Due to the length of time, it has taken to complete the building, the value of the land on which it is situated has increased, increasing the worth of the unit beyond the amount paid for the contract.

In the few years it takes to construct a condo complex, a lot can happen in anyone’s life and finances, both for the better and for the worse. These are just a few of the many circumstances that frequently lead to an Agreement of Purchase and Sale assignment in the pre-construction building industry and with developers.