Pre-Sale vs. Assignments
Buying an assignment may seem at first like something very similar to buying pre-sale (or buying new directly from the developer), but there are many key differences to consider.
Buying an assignment usually means you are getting a better price than if you just bought directly from the developer. However, instead of dealing directly with the developer – the entity that you are buying a condo from, you are negotiating and dealing with an individual. There is an element of risk by definition because you are inheriting someone else’s contract rather than negotiating your own from the start with the developer.
Most lenders are very familiar with pre-sale condos and they have programs set up for buyers to arrange the financing portion of the sale. When it comes to assignments, some lenders are not familiar with the process and buyers and sellers often encounter difficulties when dealing with the banks on assignment deals. This is another reminder why having a lawyer and a lender who are experienced with assignments is crucial for both the buyer and the seller in any assignment transaction.
Questions? Leave a comment or contact me.
