Selling an assignment condo is not the same as dealing with a resale condo sale. There are many potential challenges to navigate, and regardless of present market conditions, it can take time and skill to complete a deal. Depending on the contract you signed with the builder, you may not even be allowed to sell the condo on assignment. If they do allow it, see below for a guide on everything you need to know about selling an assignment condo in the GTA.

Pros of Selling Your Condo on Assignment:

1. Flexibility: Pre-construction condos take years to complete. If your lifestyle changes, selling your condo on assignment allows you to walk away, oftentimes with a profit.

2. Cost Savings: By selling on assignment, you avoid costs such as land transfer tax, occupancy fees, and other closing costs associated with taking possession of the condo.

3. Early Access to Funds: You can get your deposit out earlier and may even be able to negotiate the profits sooner than the building closing. This can provide financial flexibility and allow you to invest or use the money elsewhere.

4. Favourable Seller’s Market: The GTA often experiences a seller’s market, where demand exceeds supply. This can lead to competitive offers, bidding wars, and the ability to sell your condo quickly and at a favourable price.

Cons of Selling Your Condo on Assignment

  1. Limited Pool of Buyers: The pool of buyers is limited due to the substantial amount of cash required to purchase an assignment condo. This can make finding a buyer more challenging.
  • Higher Legal Fees: Due to the complex nature of an assignment condo sale, the legal fees will be higher than those for resale condos. This can eat into your profits.
  • New Tax Rules: New tax rules can severely cut into your profits, if any. It’s important to be aware of these tax implications and factor them into your decision-making process. There can be significant tax implications when selling a condo in the GTA, particularly an assignment condo. New tax rules can severely cut into your profits, making it essential to consult with a tax professional before proceeding.
  • Marketing Challenges: Marketing a condo can be more challenging due to restrictions imposed by the builder or condo association. These limitations can affect your ability to effectively advertise your property and reach potential buyers.

Conclusion: Selling an assignment condo in the GTA comes with its own set of challenges and benefits. Understanding the restrictions and requirements from the builder, as well as the financial implications, is crucial. By weighing the pros and cons, you can make an informed decision that best suits your financial situation and lifestyle needs.

For further details or assistance with the real estate in the GTA, feel free to contact

Paul Bendavid

RE/MAX Realtron Realty Inc.

Cell: 647-988-7355

Office: +1 905 539 9511

Address: 183 Willowdale Ave, Toronto