Q: My son wants to buy a condo and we were told it is an Assignment of Contract. Could you tell us what that means, if it is legal, and what we should be aware of? Doreen
A: Hello Doreen,
With the changing market, assignments of purchase contracts are starting to pop up. Currently there are 29 in Abbotsford Click Here to View Listings and only 4 in Chilliwack Click Here to View Listings
In most cases these are new properties that buyers secured a contract for, during the pre-sale phase of marketing (1 or 2 years ago) and now they want to sell the contract as the possession dates are getting closer.
What's an assignment? A contract assignment occurs when a buyer transfers their contract to buy a property to someone else before the completion date. The buyer can transfer the contract for any price, even for a higher price than they paid for the property.
Are they legal? Yes. Real estate contracts are assignable under the law unless the contract expressly forbids it. Make sure that the contract stipulates that.
What to be aware off? Since this is a very complex transaction, there are many things to be aware of and I highly recommend that you talk to a real estate professional and lawyer prior to committing to anything.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty