The sale of a buyer’s contractual rights and obligations in a pre-construction property to a new buyer (assignee) before the original transaction closes with the developer. Assignment sales are common in Ontario’s condo market. The original buyer (assignor) cannot profit tax-free — CRA considers assignment sale profits as business income, fully taxable. The developer’s consent is usually required. Since 2022, assignment sales of new residential housing are subject to HST in Ontario.
Synonyms:
condo assignment|assignment of contract