In the pre-construction real estate market, an assignee is the new buyer of a home or condominium who has legally transferred the contract for that property through an assignment sale.

A contract for a yet-to-be-built property is being offered for sale or assignment by the original buyer to a potential buyer (or assignee). At this point in time, the buyer assumes full legal responsibility for the contract’s ongoing performance. The seller (assignor) has transferred the contract to the buyer (assignee), who is now legally bound by the terms of the agreement. Consequently, the assignee is the buyer in an assignment sale and, in the end, the legal owner of the house.

Catherine wants to find a new place to live just outside of Toronto, where she presently resides and works, so she talks to her real estate agent online about possible pre-construction townhomes in Vaughan.

Her real estate agent recommends a new townhouse in the city, one that is convenient to a wide variety of services and transportation alternatives. Free parking is provided, and homeowners association dues are inexpensive. Catherine is in luck because the sale of the unit is an assignment prior to construction, which means she can haggle for a lower price and potentially save a lot of money.

The home, neighbourhood, and sales incentives are all appealing to Catherine. She gets an excellent price reduction and signs the contract to buy the new townhouse.

In this transaction, Catherine is the new buyer, or assignee, of the pre-construction contract. She takes over the ownership of the pre-construction contract and assumes the assignor‘s rights and obligations under the agreement. To rephrase, once the assignment sale closes, Catherine will be the official owner of a brand-new house.