So, Why Are Condo Assignments A Good Idea?
Basically, condo assignments help both buyers and sellers in selling or purchasing a property. And although the property in this case still undergoes the phase of pre-construction, what condo assignments actually sell is the promise to purchase a property.
Therefore, whenever a buyer decides to purchase an assignment, they step into the shoes of the original purchaser and are transferred all the rights the original purchaser once had. The price of terms of the contract cannot be renegotiated - only transferred over the contract as it already exists.
However, it is important to note that sometimes builders don't allow their original purchasers to assign contracts, which is why you have to double-check the terms before agreeing on a condo assignment. In the very end, builder approval to assign a contract is almost always necessary.
The Pros And Cons Of Condo Assignments
The greatest thing about condo assignments is their flexibility, especially if you know the purchaser or clearly understand the terms of the purchase. Still, there are many risks you need to consider of buying a pre-construction condo - and some of them include time delays, changes to the unit or building as well as extended interim occupancy. Another disadvantage is that you may not be able to get involved in the process of selecting finishes and upgrades for the building, depending on the stage of construction.
When it comes to payments, condo assignments mirror the deposit that the original purchaser has paid to date. This means that you may be required to provide 15% to 20% as a deposit rather than providing the usual 5% for a resale condo.
In the end, it is always a good idea to consider all the risks, legal requirements and paperwork that go into each condo assignments. And if you have problems doing that, you can always reach us for immediate help and assistance!