Using the assignment clause to buy or sell a pre-construction apartment requires competent legal advice. The services of a lawyer with experience in this field should be sought out.

Three years ago, when Stefan bought his two-bedroom-plus-den condo, he worked with a real estate agent and a lawyer who specialised in pre-construction real estate to help him navigate the process, answer his questions, and make sense of the complex legalese contained in his Agreement of Purchase and Sale.

Legally, you can sell a property before building has even begun through a process called an assignment, but it’s a bit more involved than a regular selling because there are now (the assignor original buyer, the developer, and the assignee new buyer).

Stefan’s condo’s assignment sale clause was included in the Agreement of Purchase and Sale that he signed with the developer. Stefan is now permitted by law to sell the pre-construction contract for the unit to a third party, provided that the new buyer agrees to be bound by the terms and conditions of the Agreement of Purchase and Sale.

Yes, the transaction is regarded to be valid if an assignment clause is included in the Agreement of Purchase and Sale and Stefan complies with the terms and conditions specified therein.

Although assignment sales are permitted under the law, each pre-construction developer has their own set of rules and regulations that might make each assignment sale different.

As the anticipated occupancy date for Stefan’s pre-construction condominium unit approaches, he is considering selling the contract for the apartment. He has decided to engage with the same real estate agent and lawyer to guide him through the assignment sale process and ensure that he complies with all applicable laws and developer regulations.

Stefan will need to pay the developer for the assignment sale, which often takes the form of legal and administration fees in order to transfer the contract for the 2-bedroom plus den unit from his name to the new buyer’s name. The Assignment of Purchase and Selling will detail the total price of the pre-construction sale assignment.