Say you are looking to purchase a new condominium. You can buy pre-construction, look into the resale market, or find what is referred to as an assignment unit. Assignments refer to buying the rights to an agreement of purchase and sale from a previous buyer, done prior to the registration of the building. Given the benefits described below, an assignment unit is an option condo hunters most definitely want to explore.

Top Reasons To Buy Assignments

• You buy without having to wait: If you buy pre-construction, you possibly have to wait over three years before you move in. If you buy resale you can move in shortly after purchase though you would likely not get the benefit of lower prices and better incentives (described below). Assignments in most cases are a happy medium.


• You have more leverage: Assignment units generally do not get the same exposure as new or resale units do, as they are not advertised on the MLS. Therefore, you have more leverage in negotiations. Not to mention, the previous owner of the unit is likely trying to avoid closing the unit and is facing time constraints.


• Your money isn’t tied up for years, and you’ll inherit all the incentives: The original owner of the unit who holds assignment rights has likely been the beneficiary of special incentives given out in earlier phases. These could include upgrades, parking, storage locker, and capped development charges. You will inherit most of these incentives even though you are purchasing the unit much later in the project’s sales cycle, while not having tied your money up for so long.


• You can often see the project and the unit before purchase: This is likely the biggest purchase of your life and it would give you peace of mind to actually see the unit you are about to buy. Assignments, unlike pre-construction units, often give you that chance.

Top Reasons Not to Buy Assignments

• Upfront costs: When buying an assignment, not only are you required to pay all the deposits upfront but also the profits the seller is asking for on the unit. Profits are the difference between the original purchase price of the unit and the price you are paying. What’s more, when it comes to financing, financial institutions often do not consider the amount paid for profits to be covered as part of your mortgage, thus requiring you to have that amount in cash.


• Colour selection and materials: When it comes to assignment units, the previous owner has already selected the colours and materials for you. While this takes some creativity away from you, you will be notified of the selections and often get to see them in person prior to purchase.

Are you pro- or anti-assignment purchases?

By Sam Hosseini, of TheRedPin.com

TheRedPin is the new way of searching, discovering and buying new condos in Toronto and the GTA as Canada's first online brokerage and Toronto's only one-stop condo shop.