Lets assume you’ve bought a brand new condo from the developer. You’ve bought it pre-construction from plans, or at some point during the construction process. Now you are looking to sell the suite. Maybe you’ll want to consider a condo assignment sale. What are your choices..
The first point at which you are really able to sell the condo suite is after the final closing. Closing is the moment at which you provde the rest of the purchase amount to the developer and the ownership of the suite is transferred to you. The balance of the money might be coming from you or you may have taken out a mortgage. Once it is yours and you own it, you are freely able to sell it. You may wish to sell it a day after closing, a week after closing or 10-years after closing. The timing doesn’t matter at this point, the suite is yours to sell if you so wish.
In the days leading up to early occupancy you will perform the pre-delivery inspection. At the point of early occupancy you may be making an additional deposit to the developer and getting the keys to the suite. The suite is fit for occupancy and you are able to move-in, if you wish. You are going to be paying a monthly occupancy charge to the builder to cover the operating costs of the building and the property taxes. However, the ownership is still with the developer. So, you can’t really sell the suite yet.
Condo Assignment Sales
It is possible to sell your suite before you own it too! Technically, you are not selling the suite. Instead, you are selling (or re-assigning) your interest in the agreement of purchase and sale to someone else. That means that rather than you being the buyer from the developer, you are transferring the existing contract to someone else, who the developer will then work with. Selling your interest in the agreement is called an assignment.
Some investors look to get out early on through assignment sales. For others it is simply that their housing needs have changed since the time when they first planned this purchase. Perhaps they have gotten married, un-married or had a job transfer to another city.
Whatever the reason, it is only possible with the permission of the Developer to do so. Generally the basic contract you signed with the developer will state it is not possible, but with an additional payment in the range of $2,000 to $5,000 the developer will include the right of assignment in your agreement.
If you have any expectation of needing this, it is safest to obtain this right.
Let me know if you have a condo you’d like to sell. Whether it is an existing suite you already own or an assignment sale, I’m here to help.
Let me know if you want to find out more about selling your condo suite