Assignment Sales in Mississauga and the GTA

An assignment sale is the sale of a contract, not the sale of a finished home. When someone buys a pre-construction condo or house from a builder, they sign an agreement of purchase and sale. That agreement gives them the right to close on the property once it is built and registered. In an assignment sale, the original buyer sells that right to a new buyer before the final closing happens. The original buyer is called the assignor. The new buyer is called the assignee. Nobody is transferring a deed or a set of keys yet, because the building may not be finished and title may not exist. What changes hands is the position in the builder’s contract, along with the deposits already paid and any agreed premium on top.

Here is how it works in plain terms. The assignor found a pre-construction unit years ago, put down deposits over time, and now wants out before the final closing. The assignee steps into the assignor’s shoes. The assignee agrees to complete the builder’s contract, pays the assignor back for the deposits, and usually pays a premium if the unit is worth more now than the original purchase price. The builder almost always has to approve the whole thing, because the original agreement contains an assignment clause that says the buyer cannot transfer the contract without the builder’s written consent. Once the builder consents and the lawyers finish the paperwork, the assignee becomes the party who will close directly with the builder when the building registers.

My name is Firas Swaida. I am a real estate agent with RE/MAX Realty Services Inc., Brokerage in Mississauga, and assignment sales are a large part of what I do every week. I work with investors on both sides of these deals, and I help people who bought pre-construction and now need to sell before closing. I serve clients in English and Arabic. This page is meant to answer the core question fully: what an assignment sale is and how it actually works, from the first conversation about listing all the way to the final closing.

What an assignment sale is, in plain language

Think of the builder’s agreement of purchase and sale as a promise. The builder promises to deliver a completed unit. The buyer promises to pay for it and close on it. That promise has value, and in a rising market it can have a lot of value, because the buyer locked in a price years before the unit was ready. An assignment sale lets the buyer sell that promise to someone else instead of closing on the unit themselves.

The word to keep straight is the difference between the two contracts involved. There is the original agreement between the builder and the first buyer. Then there is the assignment agreement between the first buyer and the new buyer. The assignment agreement does not cancel the original one. It sits on top of it and transfers the first buyer’s rights and obligations to the new buyer. That is why the new buyer has to honour everything in the original builder contract, including the closing date, the balance owing, occupancy terms, and any rules the builder set out.

Assignor and assignee: who is who

Assignor: the original buyer who signed the agreement with the builder and now wants to sell that contract before closing. The assignor has paid the deposits so far and wants to recover them, and usually wants a premium on top.
Assignee: the new buyer who is taking over the contract. The assignee reimburses the assignor’s deposits, pays the agreed premium, and then becomes responsible for closing with the builder later on.

A simple way to remember it: the assignor assigns the contract away, and the assignee is the one it is assigned to. On closing day for the assignee, they are dealing with the builder, not with the assignor, because by then the assignor has already been paid out and stepped away.

What is actually being sold

Nothing physical is being sold in an assignment. There is no land transfer of a finished property between the assignor and the assignee, because the property may not be registered yet. What is being sold is a bundle of contract rights: the right to close at the original price, the benefit of the deposits already paid, and any upgrades or credits attached to the deal. The assignee is buying a spot in line, a good price locked in years ago, and a unit that is often close to being ready.

Assignment versus a normal resale

In a normal resale, the seller owns a registered property and transfers title to a buyer, who takes possession and gets keys. In an assignment, the assignor does not own a registered property yet. They own a contract. That single difference changes almost everything about how the deal is priced, marketed, financed, and taxed. It is why assignment sales are not listed the same way as resale homes, and why buyers and sellers both need someone who does these deals regularly.

How an assignment works, step by step

Every builder and every project has its own quirks, so the exact order can shift. Still, most assignment sales in the GTA follow the same path from start to finish. Here is the version I walk clients through.

Step one: read the original agreement and confirm you can assign

Before anything else, I read the assignor’s original agreement of purchase and sale with the builder. The assignment clause is the part that matters most. Some builders allow assignments freely once certain conditions are met. Some allow them only after a construction milestone. Some restrict marketing, meaning the assignor cannot publicly advertise the unit. A few do not permit assignments at all until closing. There is no point listing until we know what the contract permits and what the builder will require.

Step two: price the assignment and prepare it for market

Next we set a realistic price. This is not the same as pricing a resale condo, because we are pricing a contract with deposits attached and a premium on top. I look at what comparable units are selling for, the original purchase price, the deposit paid, the remaining balance, the expected closing timeline, and how the wider market feels right now. Then we prepare marketing materials, which for assignments usually means floor plans, the builder’s price and feature list, the deposit structure, and photos or renderings, since the unit may not be finished enough to photograph.

Step three: market quietly and find the assignee

Assignments are often marketed differently from resale listings. Depending on the builder’s rules, the unit may not be allowed on the public MLS system, or the builder may restrict how it can be advertised. That means much of the work is direct: reaching investors and buyers who are specifically looking for assignments, working within an agent network, and matching the unit to buyers who understand what they are purchasing. I explain more about pricing and marketing further down.

Step four: negotiate and sign the assignment agreement

When a serious assignee comes forward, we negotiate the premium, the deposit reimbursement, the timing of payments, and any conditions. Once both sides agree, the assignment agreement is drafted. This is the contract between the assignor and the assignee. It sets out the price, how and when the deposits get reimbursed, how the premium is paid, and what happens if the builder refuses consent. This document is usually prepared or reviewed by the lawyers, and both sides should have their own lawyer.

Step five: get the builder’s consent

The signed assignment then goes to the builder for consent. The builder reviews the new buyer, often asks for the assignee’s identification and sometimes proof of funds or financing, and charges an assignment fee to process it. Until the builder consents in writing, the deal is not firm. This step can take time, and it is one reason an experienced agent matters, because the package needs to be complete and correct or it sits on someone’s desk.

Step six: the assignor gets paid out

When the builder consents and any conditions are met, the assignee pays the assignor. In most deals this means the assignee reimburses the deposits the assignor already paid to the builder, plus the agreed premium. The exact mechanics vary. Sometimes the assignee pays the deposit reimbursement and premium partly on signing and partly on final closing. The lawyers handle the flow of money so that the assignor is protected and the assignee is not overpaying before consent is secured.

Step seven: the assignee closes with the builder

From this point, the assignee is the party in the builder’s contract. When the building registers and the unit is ready, the assignee closes directly with the builder. They pay the remaining balance of the purchase price, along with the usual pre-construction closing costs, and they take title. The assignor is long gone by then, having already been paid out at the assignment stage. Two moments get confused here: interim occupancy, when the assignee may move in and pay occupancy fees before registration, and final closing, when title actually transfers. The lawyers walk the assignee through both.

Why people sell assignments

People do not usually buy pre-construction planning to assign it. Life changes over the years between signing and closing, and an assignment becomes the cleanest way out. Here are the reasons I see most often.

A change in plans

Pre-construction timelines are long. Someone who bought four or five years ago may have moved cities, changed jobs, separated, had a growing family, or simply decided the unit no longer fits their life. Rather than close on a property they do not want, they assign the contract to a buyer who does.

Taking a profit before the final closing

Investors often buy pre-construction specifically because the price is locked in early. If the market has moved up, the contract is worth more than what they agreed to pay. Assigning lets them realize that gain before the building even registers, without having to close, hold, and later resell the finished unit. It frees up their capital sooner so they can move to the next project. I will say clearly: any profit on an assignment can be taxable, and I cover that in its own section below. Nobody should assume the premium is theirs to keep tax-free.

Not wanting to carry the closing

Final closing on a pre-construction unit is a real financial event. The buyer has to qualify for a mortgage, pay the remaining balance, and cover closing costs, sometimes including development charges and other adjustments. Some buyers reach the finish line and realize they cannot or do not want to carry it. Maybe financing changed, maybe rates moved, or maybe they simply do not want another property on their books. Assigning the contract lets them exit before they have to fund that closing.

Freeing up deposits and capital

Deposits on pre-construction are paid in stages and can add up to a meaningful amount tied up for years. An investor who wants that capital back, or wants to redeploy it into another opportunity, can assign the contract to recover the deposits plus any premium rather than waiting for a distant closing.

Why buyers like assignments

Assignees are usually experienced buyers and investors who understand what they are getting. There are real reasons they seek these deals out.

Getting into a nearly finished building without the long wait

The biggest draw is time. Buying pre-construction from a builder can mean waiting years for the building to be ready. An assignee often steps into a project that is close to completion. They get much of the benefit of pre-construction without the long uncertainty about when it will actually be done.

Sometimes a good price

Depending on the market and the seller’s situation, an assignee can sometimes buy at an attractive price. The original buyer locked in years ago, and even with a premium the total can compare well to what similar finished units cost today. I will not promise a discount, because it depends on the deal and the market, but value is often part of why buyers pursue assignments.

Access to units that are otherwise sold out

Popular projects sell out. Once a building is sold out at the builder level, the only way in is to buy from an existing purchaser, which usually means an assignment. For a buyer who wants a specific building, floor, or layout, it can be the only door available.

A brand-new home with warranty coverage

The assignee is still buying a new unit from the builder in the end. They close with the builder, they get a home nobody has lived in, and in Ontario new homes come with statutory new home warranty program coverage. That combination of new construction plus warranty, on a shorter timeline than starting fresh with a builder, appeals to a lot of buyers.

The builder’s consent and the assignment clause

This is the part of an assignment that people underestimate, and it is where deals go sideways when they are handled carelessly. The builder holds real power here, and the original agreement spells out exactly how much.

The assignment clause in the original agreement

Nearly every builder’s agreement of purchase and sale contains an assignment clause. It typically says the buyer may not assign the agreement without the builder’s prior written consent, and it often lists conditions the buyer must satisfy first. Common conditions include being fully paid up on deposits, not being in default under the agreement, and sometimes waiting until a certain construction stage. The clause may also restrict advertising, and it will usually reserve the builder’s right to charge a fee. The first thing any assignor and any assignee should do is read this clause closely, and their lawyers should confirm what it allows.

Why the builder’s consent matters so much

Without the builder’s written consent, an assignment is not valid. If someone tries to sell their contract around the builder, they risk breaching the original agreement, and a builder could treat that as a default. That is not a risk worth taking. Consent is not a formality to skip. It is the step that makes the assignee the recognized party in the builder’s contract. I make sure the consent package is complete and submitted the way the builder wants it, because a sloppy submission slows everything down.

Assignment fees builders may charge

Builders commonly charge a fee to process an assignment. It covers their administrative work of reviewing the new buyer and amending their records. These fees vary widely from builder to builder and project to project, and they can be significant, so they need to be known up front and factored into the deal. There may also be legal or administrative costs on the builder’s side that get passed along. Because the exact amounts differ, the right move is always to check the original agreement and confirm the current fee directly with the builder before pricing the assignment. I never guess at these numbers. We get them in writing.

What the builder reviews about the assignee

The assignee’s identification and legal details, so the builder knows who they are now contracting with.
Sometimes proof of funds or evidence of mortgage pre-approval, since the builder wants confidence the assignee can close.
Confirmation that the assignor is in good standing and fully paid up on the required deposits.
Any project-specific requirements the builder sets out in the consent process.

Price, deposits, and how the assignee reimburses the assignor

The money side of an assignment trips people up because it works differently from a resale. Let me break down how the assignment price relates to the original purchase price and the deposits, and how the reimbursement actually happens.

How the assignment price is built

Start with the original purchase price the assignor agreed to pay the builder. That price does not change. The assignee is still going to close with the builder at that original price later on. What the assignee pays the assignor at the assignment stage is generally made up of two parts:

Reimbursement of the deposits the assignor has already paid to the builder. This is money the assignor put in, and they get it back from the assignee.
The premium, which is the extra amount the assignee pays above the deposits because the contract is worth more now than the original price. The premium is the assignor’s gain, before any taxes and costs.

So the assignee’s total cost is the original purchase price plus the premium, roughly speaking, spread across two stages. They pay the assignor for the deposits and premium at the assignment stage, and they pay the builder the remaining balance of the original price at final closing.

How deposit reimbursement works in practice

The deposits the assignor paid are sitting with the builder, credited to the unit. When the assignee takes over, those deposits carry forward and get credited to the assignee at final closing on the statement of adjustments. To make the assignor whole, the assignee pays the assignor an amount equal to those deposits. The timing is negotiated. In some deals the assignee reimburses the deposits when the builder consents. In others the reimbursement is split across signing and final closing. The lawyers set this up so the assignor is not left exposed and the assignee is not paying for deposits before the deal is firm.

Why the structure protects both sides

Handled properly, this structure is fair. The assignor recovers the capital they put in and earns their premium for having locked in the price early. The assignee gets the benefit of those deposits credited at closing and a unit at a total cost they were willing to pay. The lawyers make sure the flow of funds lines up with the builder’s consent so neither party is taking on risk they did not agree to.

The paperwork and the lawyers on both sides

Assignments are document-heavy, and the legal work is not optional. Both the assignor and the assignee should have their own real estate lawyer. These are contract transactions with tax consequences, and a lawyer who handles assignments will catch things that a general approach misses.

The key documents

The original agreement of purchase and sale between the builder and the assignor, including all amendments, the deposit receipts, and the feature and finishes list. Everything starts here.
The assignment agreement between the assignor and the assignee. This sets the price, the deposit reimbursement, the premium, the payment timing, and what happens if the builder does not consent.
The builder’s consent and any builder assignment forms. Builders often have their own consent documents and requirements that must be completed exactly.
Deposit and payment records, so everyone can confirm what was paid and what is owed.

What the assignor’s lawyer does

The assignor’s lawyer reviews the assignment agreement, confirms the deposit reimbursement and premium are properly documented, makes sure the client is protected if the builder refuses consent, and coordinates the flow of funds so the assignor gets paid. They also make sure the tax provisions in the agreement are handled correctly, which matters a great deal given the rules I cover below.

What the assignee’s lawyer does

The assignee’s lawyer reviews the original builder agreement so the assignee understands exactly what they are taking on, including the closing obligations and any restrictions. They review the assignment agreement, confirm how the deposits will be credited at final closing, check the builder’s consent requirements, and prepare the assignee for the eventual closing with the builder. They also advise on the tax side and coordinate with the assignee’s accountant where needed.

Why two lawyers, not one

The assignor and the assignee have different interests. The assignor wants to be paid and released. The assignee wants to be sure the contract they are inheriting is clean and closeable. Each side needs independent advice. I work alongside both lawyers to keep the deal moving, but I never substitute my role for legal advice, and I always tell clients to lean on their lawyer for the legal questions.

Taxes on assignments: HST and income tax, explained carefully

This is the section where I have to be direct and a little cautious at the same time. Assignment profits can be taxable, and the rules changed in recent years. I am going to explain the shape of it at a high level so you understand why it matters. I am not going to give you numbers for your situation, and I am not giving tax advice. Every assignor and assignee should get proper guidance from a real estate lawyer and an accountant who know the current rules and your specific facts. Please read that last sentence twice. It is the most important thing on this page about taxes.

HST on assignment sales

Since changes that took effect on May 7, 2022, assignment sales of newly constructed or substantially renovated residential housing are generally taxable for GST/HST purposes across Canada, which in Ontario means HST. This applies even to individuals who never registered for an HST number and did not think of themselves as being in business. The assignor is generally the party responsible for collecting the applicable HST on a taxable assignment and remitting it to the Canada Revenue Agency. That is a real obligation, and getting it wrong can be costly, which is exactly why an accountant needs to be involved before the deal closes, not after.

How the deposit reimbursement is treated for HST

There is an important point about the deposits. For assignment agreements entered into on or after May 7, 2022, if the assignment agreement states in writing that part of what the assignee is paying is attributable to reimbursing the deposit the assignor paid to the builder, that deposit portion can generally be excluded from the amount subject to HST on the assignment. In plain terms, the HST generally applies to the premium, the profit portion, rather than to the deposit money being paid back, but only if the agreement is worded properly to reflect that. This is one of the clearest reasons the assignment agreement should be drafted or reviewed by a lawyer who does these deals. The wording has real tax consequences. Do not rely on a template.

Income tax on the profit

Separate from HST, the profit an assignor makes can also be subject to income tax. How that profit is taxed depends on the facts. In some cases the Canada Revenue Agency may treat an assignment profit as business income, which is generally fully taxable. In other cases it might be treated as a capital gain, where only a portion is taxable. Which treatment applies turns on things like the person’s intention when they bought, how often they do these deals, and other factors. This is genuinely fact-specific, and it is not something to guess at. An accountant is the right person to assess it for your situation.

The honest bottom line on taxes

Assignment profits are not automatically tax-free money. Between HST obligations and income tax, both sides need to plan for the tax side before they sign, so there are no surprises. I flag these issues early in every deal, I make sure clients know to build tax advice into their timeline, and I coordinate with their lawyer and accountant. What I do not do is tell you what you will owe, because that is their job and it depends on your facts. Get advice from a real estate lawyer and an accountant. I will say it as many times as it takes.

The main risks, and how I manage them

Assignments carry risks that a standard resale does not. I would rather name them plainly than pretend they do not exist. Here are the ones that matter most, split by side, along with how I work to reduce them.

Risks for the assignor (the seller)

The builder refuses consent. If the builder will not consent, the assignment cannot close. I confirm the assignment clause and the builder’s process before we list, and we structure the agreement so the assignor is protected if consent is not granted.
The assignee cannot perform. If the assignee cannot fund the deposit reimbursement and premium, the deal stalls. I qualify buyers carefully and work with their financing in mind, and the agreement is written to protect the assignor if the assignee defaults.
Tax surprises. An assignor who did not plan for HST or income tax can be caught off guard. I raise the tax issues early and push clients to their accountant and lawyer well before closing.
Getting the price wrong. Overpricing means the unit sits, and assignments have limited marketing windows. Underpricing leaves money on the table. Careful pricing from the start protects the assignor.

Risks for the assignee (the buyer)

Inheriting a contract they did not fully read. The assignee takes on all of the original builder agreement, including the closing obligations, occupancy terms, and any adjustments the builder can charge at closing. I make sure the assignee and their lawyer review the original agreement in full before committing.
Financing the final closing. The assignee has to qualify for and fund the closing with the builder later. I encourage buyers to confirm their financing plan early so the closing does not become a scramble.
Closing costs at final closing. Pre-construction closings can include development charges, levies, and other adjustments on top of the purchase balance. These need to be understood in advance, and the assignee’s lawyer reviews them.
Construction delays. Builders can move final closing dates. The assignee should understand the timeline and be prepared for it to shift.
Tax responsibilities and credits. The assignee needs to understand how the deposits get credited and how HST is handled on the deal. Their lawyer and accountant confirm this.

How I manage the deal from both angles

My approach is disciplined. I start with the documents and confirm what the builder allows. I price and prepare the unit realistically. I qualify the other side so we are not wasting time. I work closely with the lawyers so the paperwork and the money line up with the builder’s consent. And I raise the tax questions early and send people to their accountant, because I have seen what happens when that gets left to the last minute. Doing assignments well is mostly about handling the details in the right order and not skipping steps.

How to price and market an assignment

Assignments are not listed the same way resale homes are, and pricing them takes a different lens. This is an area where working with someone who does assignments regularly makes a real difference.

Pricing an assignment

Pricing starts with the pieces that are fixed: the original purchase price, the deposits paid, and the remaining balance owing to the builder. Then I look at the market: what comparable units, finished or assignment, are trading for, how the building and the area are performing, and where demand sits right now. From there we set a premium that reflects current value while staying realistic about the buyer pool. An assignment priced too high in a thin market can sit past the window the builder allows for marketing. Priced right, it moves.

Marketing within the builder’s rules

The first constraint is always what the builder permits. Some builders restrict or prohibit public advertising of assignments, and some do not allow them on the public MLS system at all. So marketing an assignment often looks different from a typical listing. Depending on the rules, it can involve direct outreach to investors and buyers who want assignments, working through an agent network, and presenting the pre-construction materials that matter: floor plans, the builder’s feature list, the deposit structure, the closing timeline, and renderings or photos where available. Because the unit may not be finished, the presentation leans on documents and plans rather than staged interior photos.

What buyers of assignments want to see

The original purchase price and the deposit already paid, so they can understand the total cost.
The premium being asked and how it compares to current values.
The expected final closing timeline and the balance owing to the builder.
The floor plan, exposure, and finishes, plus any upgrades or credits included.
The builder’s assignment terms and fee, so there are no surprises during consent.

Timing the sale

Timing matters with assignments. The window to assign is shaped by the builder’s rules and by how close the project is to final closing. Assign too late and there may not be enough runway to complete the process before the builder’s closing date. I help assignors read the timeline so they list with enough room to get the builder’s consent and close the assignment properly.

How to find and evaluate an assignment to buy

Buyers often ask me how to find assignments in the first place, since they are not all sitting on the public listing sites. Then they ask how to tell a good one from a bad one. Both are fair questions.

Finding assignments

Because many assignments are not publicly advertised, the best way to find them is through an agent who is active in this space and connected to the flow of these deals. That means working with someone who hears about assignments as they come up, in projects across Mississauga and the wider GTA, and who can match you to units that fit your budget and goals. Being in the right networks does a lot of the work here. Buyers who only watch public sites miss most of what is available.

Evaluating an assignment before you buy

Read the original agreement. Have your lawyer review the builder’s agreement of purchase and sale in full. You are inheriting all of it. Know the closing obligations, occupancy terms, and any charges the builder can add at closing.
Understand the total cost. Add up the deposit reimbursement, the premium, and the remaining balance you will owe the builder, plus the closing costs on a pre-construction unit. Compare that total to what finished comparable units are worth.
Check the builder and the project. Look at the builder’s reputation, the project’s construction status, and the realistic final closing timeline. Delays happen, so plan for them.
Confirm the assignment terms and fee. Know what the builder charges and requires for consent, and factor it into your numbers.
Plan your financing early. You will need to fund the assignment payment now and the final closing later. Line up your financing plan before you commit.
Get tax advice. Talk to an accountant about how the deposits are credited and how HST applies to your purchase, so you are clear before closing.

Why buyers work with me on this

I know which projects have assignments available, I understand how each builder handles consent, and I can walk a buyer through the total cost and the timeline honestly. I also work with the lawyers to make sure the contract the buyer inherits is clean and closeable. My job is to find you a unit that makes sense and to make sure you understand exactly what you are buying before you sign anything.

Frequently asked questions about assignment sales

What is an assignment sale in simple terms?

It is the sale of a contract rather than a finished home. The original buyer of a pre-construction unit, the assignor, sells their right to close on that unit to a new buyer, the assignee, before the final closing happens. The assignee reimburses the deposits, usually pays a premium, and then closes with the builder later. No deed or keys change hands at the assignment stage, because the property may not be registered yet.

What is the difference between an assignor and an assignee?

The assignor is the original buyer who signed the agreement with the builder and now wants to sell that contract. The assignee is the new buyer who takes over the contract, reimburses the assignor’s deposits, pays the premium, and becomes responsible for closing with the builder. The assignor assigns the contract away, and the assignee is the one it goes to.

Do I need the builder’s permission to assign my contract?

In almost every case, yes. The original agreement of purchase and sale contains an assignment clause that requires the builder’s written consent before you can assign. Selling around the builder risks breaching your agreement and could let the builder treat it as a default. Getting the builder’s written consent is not optional, and I make sure the consent package is complete so it moves as smoothly as possible.

How much does a builder charge to allow an assignment?

Builders commonly charge an assignment fee to process the transaction, and it can be significant. The exact amount varies widely by builder and by project, and there may be additional legal or administrative costs. Because it differs so much, the right approach is to check your original agreement and confirm the current fee directly with the builder before pricing the assignment. I never guess at these numbers. We get them in writing.

Does the assignee pay back my deposits?

Yes, that is the normal structure. The assignee reimburses the assignor for the deposits already paid to the builder, and usually pays a premium on top. Those deposits carry forward and get credited to the assignee at final closing on the statement of adjustments. The timing of the reimbursement is negotiated and handled by the lawyers so both sides are protected.

How is the assignment price calculated?

Roughly, the assignee’s total cost is the original purchase price plus the premium. At the assignment stage the assignee pays the assignor the deposit reimbursement plus the premium. At final closing the assignee pays the builder the remaining balance of the original purchase price, with the deposits credited. The premium reflects how much more the contract is worth now compared to the price the assignor locked in. The exact numbers always come from the actual agreement.

Do I have to pay HST on an assignment sale?

Assignment sales of new residential housing are generally taxable for HST since the rules that took effect on May 7, 2022, and the assignor is generally responsible for collecting and remitting it. For agreements entered on or after that date, if the assignment agreement states in writing that part of the payment is reimbursing the deposit, that deposit portion can generally be excluded from the amount subject to HST, so the tax generally falls on the premium. This is exactly why the agreement wording matters and why you need a lawyer and an accountant. I am describing the general shape of the rules, not giving you tax advice for your situation.

Is the profit on an assignment taxed as income?

It can be. Separate from HST, the profit may be subject to income tax, and how it is taxed depends on the facts. In some cases the Canada Revenue Agency may treat it as business income, which is generally fully taxable. In other cases it may be treated as a capital gain, where only a portion is taxable. Which applies turns on your intention when you bought, how often you do these deals, and other factors. An accountant should assess this for you before you sign.

Do both sides need a lawyer?

Yes. The assignor and the assignee should each have their own real estate lawyer, because their interests are different and each side needs independent advice. The assignor’s lawyer protects the payout and the tax provisions. The assignee’s lawyer reviews the original builder agreement, confirms how the deposits are credited, and prepares the buyer for the eventual closing. I work alongside both lawyers but never replace their legal advice.

Can I buy an assignment even if the building is sold out?

Often, yes. Once a project is sold out at the builder level, buying an assignment from an existing purchaser is usually the only way in. That is one reason assignments are popular with buyers who want a specific building or layout that is no longer available directly from the builder. Because these units are frequently not advertised publicly, the way to find them is to work with an agent who is connected to that flow.

Why are assignments not listed like normal resale homes?

Because the assignor does not own a registered property yet, they own a contract, and because builders often restrict how assignments can be advertised. Some builders do not allow assignments on the public MLS system at all. So marketing an assignment leans on direct outreach to investors and buyers who want them, and on pre-construction materials like floor plans and the builder’s feature list rather than staged interior photos. It is a different process from listing a finished home.

How long does an assignment take to complete?

It varies. Once an assignee is found and the assignment agreement is signed, the builder’s consent step can take time, and the timeline is also shaped by how close the project is to final closing. That is why timing matters. Assign too late and there may not be enough runway before the builder’s closing date. I help assignors list with enough room to get consent and complete the assignment properly.

Talk to Firas about buying or selling an assignment

Assignment sales reward people who understand the contract, the builder’s rules, the money, and the tax side, and who handle the details in the right order. That is the work I do every week across Mississauga and the GTA, with investors and with people who bought pre-construction and now need to sell before closing. I will read your agreement, tell you honestly what it allows, price and market the unit the right way if you are selling, and find and evaluate the right unit if you are buying. I will also make sure you get your legal and tax advice from a real estate lawyer and an accountant, because those questions are theirs to answer, not mine.

If you are thinking about assigning a pre-construction unit, or you want to buy an assignment in the GTA, reach out to Firas Swaida at RE/MAX Realty Services Inc., Brokerage. Call or text me at (647) 402-4727. I serve clients in English and Arabic, and I am glad to walk you through your specific situation and next steps.

Assignment Sales in Mississauga and the GTA