Home » What is a condo assignment, and how to buy it in Canada?

What is a condo assignment, and how to buy it in Canada?

Canada has one of the fastest-growing real estate industries in the world. There are many options for you as a buyer or as an inverter.

One of the best options is condo assignment sales, giving you the chance to own a condo before it’s constructed.

Fortunately, many companies help you find and choose a condo assignment to buy. So you won’t face severe problems in this regard.

In this article, we’re going to let you learn more details about condo assignments and help you buy a good one in Canada.

The difference between a condo and an apartment

A condo, also known as a condominium, is an independent unit in a residential building and is mainly used in North American countries.

This unit can be sold or rented by the owner regardless of the other units in the building. That’s the main difference between a condo and an apartment.

All the units in an apartment are owned and managed by a company, while different person owns each unit in a condo building.

A condominium building is a common-interest property, and you have to share many spaces like parks, pools, playgrounds, and gyms with your neighbors.

When you decide to live in a condominium building, you have to pay a fixed fee on a monthly basis to cover the common expenses of the building.

What is a condo assignment?

A condo assignment is about pre-construction condo projects when the owner of the condo wants to sell the contract before the building is finished.

In other words, it is completely different from a regular real estate deal in which you buy or sell a constructed home. In an assignment sale, you buy a contract of a pre-constructed home, and you’ll find the chance to sell it after it is finished.

In such resale transactions, the builder has a key role in addition to the seller and the buyer. For example, he/she can refuse a buyer because he/she is the original “buyer.”

Advantages of buying condo assignments

Now the question is why we should go for assignment resales. For answering this question, it’s good to look at some advantages of buying condo assignments:

  • You will earn a new condo at a considerably lower price
  • Earning equity
  • Lower taxes
  • Having the chance to choose a brand-new condo with less maintenance cost

Tips for buying a condo assignment sale

If you have become interested in condo assignments, you’d better pay attention to some tips before making the purchasing decision.

Find FHA-approved condos

Getting a mortgage is one of the most important stages of buying a home. When buying a condo in Canada, you have to find an FHA-approved one to be able to get a mortgage.

A loan for a condo might be even more difficult than it is for other kinds of homes. The most important reason is that FHA will assess the condo development process; its approval is needed if buyers want a loan.

FHA provides the list of approved condos, and you’d better get a consultant from a seasoned mortgage expert to avoid any misunderstanding.

Use smart platforms like Condoly

Condoly is one of the best real estate companies in Canada that simplify the process of finding and buying condo assignments. This is your best chance to find a condo with modern design and brand-new amenities and buy its assignment before it is occupied.

Here are some important things you have to consider when using these sites:

  • Sites like Condoly let you know the estimated market price of the condo when it is constructed based on the previous deals in the region.
  • The amenities of the condo. As you can’t see the building, you have to make sure that it will be just like what you want before making the decision.
  • The neighborhood especially Walk Score, Bike Score, and Transit Score.

Consider important dates

Another important factor in condo assignment deals is the timeline. Here are some important dates you need to consider when buying a condo assignment.

Occupancy date

This is one of the most important factors and is the date the condo is ready, but it is not finished.

Assignment closing date

On this day, you can take over the contract. The builder will accept the new buyer on this date. In fact, you have to consider the closing date 5 days after the builder accepts the buyer. 

Closing date of the condo

The last important date is the closing date of the condo you want to buy its assignment. Please remember that the title is produced and transferred to the new buyer only when the condo is closed.

Conclusion

Buying a condo assignment is a perfect choice when you want to have a modern home. This will cost you less and give you some opportunities to make a profit when selling the condo. There are some smart platforms out there that let you know the estimated price of the condo when it is constructed. Therefore, you can decide better and choose the best condo for your family.

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