Toronto Realtor Yossi Kaplan simplifies Toronto Condo Assignments: What are they? How do they work? What about deposits? Invest five minutes and watch now:
Condo Assignments – What Are They?
Toronto Condo Assignments are a mix of pre-construction and re-sale. They are complicated and difficult to transact. In this article and video I explain what they are and how to go about buying or selling them. But first, lets get to the basics:
Do you want to know the following:
- What is an Assignment?
- How does it work?
- What is the “Original Price” ?
- What is the “Assignment Price” ?
- What is “Seller’s Profit” ?
- What is the APS ?
- What deposits are required?
- How to calculate it all?
Where to find Condo Assignments?
Since most assignments are private (exclusive, not on MLS), you won’t find them easily. But I do have my ways. I have a large network of investors and fellow Realtors who deal with Assignments. I have access to specialized closed groups that share deals. People call me – I’ve helped many buy and sell their assignments.
Remember, Toronto condo assignments are not traded on the MLS. 99% of APS (Purchase Agreement) forbid you the buyer, from advertising your assignment for sale. The Developer would typically not approve your assignment until they have sold a significant portion of their project, usually around 90%. Moreover, the Developer can block you from selling your assignment if you broke the rules.
So, how you go about all that? There are way, which are legal and easy. Contact me and i’ll explain.
How Do You Calculate Deposits and Profits?
(watch the video above for complete explanation)
This is explained in detail in the video. In short, you want to pay attention to the following:
- Original price paid
- Deposit structure (to Developer)
- Closing costs
- Land Transfer Tax
- HST and HST Rebate
- Extras, additions, upgrades
- Benefits, discounts, cash back, incentives
- Deposit(s) to the Seller of the Assignment
- Closing with the Developer
I suggest to anyone looking to trade, to contact me first and get some good advise. I also recommend you check in with your lawyer and accountant prior to listing or buying. Together, we can help you close quickly and easily.