Presale condo

Can anyone offer some info. on selling a Pre-sale Condo. Not an Assignment just a sale before completion. Because the property hasn't closed are you just selling the offer to purchase. What's involved. Tks

Hi Daniel, I hope this helps. I purchased a one bedroom condo on assignment and then found a buyer for it prior to the building registering (still waiting). After he building registers with the city the closing is usually within 30 days. In order for the buyer to avoid paying HST, the unit needed to be rented once the occupancy permit was given (3 months ago). The unit is no longer considered a new home upon completion OF THE SALE. FYI: this condo is in Barrie, ON.

What province ?

Gains on assignment not allowed in BC anymore. Since your don't own the unit it's not a sale but an assignment. Legally you are on the hook if the buyer doesn't close and in BC you can't collect more money. Usually you have a separate contract with an assignment fee or consultation fee for it. Get legal advice re exact contract wording.

Make sure you review your purchase contract very closely. Many builders now restrict you from selling the condo prior to possession and require you to sell it back to them at the purchase price.

Keith Uthe, REIA
Enrich Mortgage Group

Hi I have dealt with a few of these recently in BC. Send me a message for more info


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