An assignment sale is the sale, or the "assignment" of a contract to purchase a pre-construction unit (Can apply to both condominum suites and detached, semi detached houses, etc). The assignment sale is applied when the pre-construction unit has not been registered, so there is no ownership of the unit yet, and only the contract is being sold.
When you purchase a pre-construction unit, in the Builder's Agreement of Purchase and Sale (APS), there will be an assignment clause/right, allowing you to sell the unit before it is even built or complete.
* The Assignee (buyer) is not buying a property from the Assignor (seller), they are buying the contract which give them the right to acquire the unit from a 3rd party (e.g: builder).
* The Assignor 'assigns' their interests/rights in the Original Contract with the builder to the Assignee, the Assignee 'assumes' and agrees to perform all of the Assignor's obligations under the Original Agreement as if they had purchased the unit directly from the builder.
Once the building/house is completed and registered by the city, the ownership will be transferred to the Assignee (buyer). Before then, it is just the sale of a contract!
>>Learn more about the benefits of assignments to both sellers and buyers in our FAQ's tab!