Buying an assignment is not inherently riskier than buying directly from a developer, but the risk sits in a different place. You are not buying a home — you are stepping into somebody else's contract, exactly as they signed it. Every term they agreed to becomes yours, including the ones they did not negotiate well.
What you inherit: the original purchase price, the deposit schedule and what has already been paid, the completion date, the finishing specifications and any upgrades chosen, and the contract's rights and obligations if the project is delayed or the developer runs into trouble. You cannot renegotiate the underlying contract with the developer — you take it as it stands.
The upside is real. Assignments can be priced below the developer's current release for the same floor plan, particularly when the seller needs out. Well-located units in nearly-complete buildings are sometimes only available by assignment. And a shorter wait to completion has genuine value.
The checks that matter: read the original contract and every amendment, confirm in writing that the developer will consent to the assignment, verify the deposits actually paid, confirm your financing with a lender who is comfortable with assignment purchases, and understand the GST position on the assignment amount before you sign — not after.
The mistake we see most often is a buyer treating an assignment like a resale purchase and skipping the contract review. The contract is the entire product.
This is general information, not legal or tax advice. Assignment tax treatment in particular is unforgiving, and we will tell you to speak to a CPA before you accept an offer.
It can be, provided you review the original contract and every amendment, confirm developer consent in writing, verify the deposits paid, and arrange financing with a lender comfortable with assignments. The risk is not in assignments as a concept — it is in inheriting contract terms you have not read.
The original buyer's rights and obligations under their contract with the developer: the price, deposit schedule, completion date, finishing specifications, and the contract's provisions for delay. You are buying the contract, not the finished home.
No. You step into the existing contract as written. What you negotiate is the assignment price with the seller, not the underlying terms with the developer.
Yes. On assignment completion the funds typically flow through the lawyers: the original buyer receives their deposits back plus any uplift above their purchase price, and you assume the remaining deposit obligations and the balance owing at completion.
Sometimes, particularly where the seller needs to exit. But not always — in some buildings the developer is discounting more aggressively than assignors. Comparing against the developer's current price list for the same floor plan is the only way to know.
Talk to a buyer-side presale specialist: (672) 258-1100. Free contract review and valuation — we don't work for the developer.