What You Need to Know About Presale Assignment Of Contracts
Assignment of Contract and Purchase and Sale BC.
And What You Need to Know About Assigning Properties
“A contract assignment occurs when the original buyer transfers the contract to buy the property to another buyer before the construction completion date. The original buyer can transfer the contract for any price, as well as for a higher price than they originally paid for the property.” In theory, the new buyer is buying a “resale” of a previous “presale.” Which is where the term “presale resale” comes from.
When construction completion has not occurred, they are not the legal owner of the property yet. Thus they require consent from either the seller or the developer (frequently the developer).
This can occur in resale and presale homes; however, assignments are most commonly found in presales with a more extended closing, often 5 years away.
Advantages Purchasing or Selling a Presale Assignment
There can be advantages for both the buyer and the seller, but there can be risks and restrictions you will need to know about before you proceed. Ask an experienced presale real estate professional to guide you through.