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The B.C. office of the superintendent of Real Estate has issued an updated information bulletin for those buying assignments for a new condo or other residential property.
The alert is provided to consumers for information purposes only. It is important for purchasers to obtain appropriate professional real esate and legal advice prior to entering into an assignment agreement.
Things to consider before buying an assignment:
– Consider whether an assignment is permitted under the purchase contract. Some developers do not permit assignments. Others may require the developer’s consent and a substantial assignment fee;
– Review the developer’s Disclosure Statement and thoroughly review all documents related to the sale;
– Obtain advice from a lawyer and/or real estate professional prior to entering into an assignment contract;
– Consider all your options, such as whether the deposit and “lift” will be paid to the assignor upon signing the agreement or held in trust until some later date. Generally, it is preferable from the assignee’s perspective if money is released to the assignor only after the unit is built and title is being transferred; and
– Confirm in the assignment agreement how the assignor will meet all of the requirements for a valid assignment, and set out what will happen if there is ony breach of the assignment agreement or the pre-sale contract.
For further information on real estate transactions and contact information for government offices and industry associations, visit www.fic.gov.bc.ca; or the Homeowner Protection Office website at www.hpo.bc.ca.
