905-896-3333 * 905-827-6999 * 416-762-4200

Great Contact For Assignment Help


David Carter, Partner Grechi Carter Real Estate Lawyers

416-900-3865 ext 102
Direct: 647-494-9758
Davidcarter@gclaw.ca

www.gclaw.ca
55 Eglinton Ave E Suite 503, Toronto ON M4P 1G8

David Carter is very knowledgable regarding Condo Assignments. He has done Condo Assignment seminars for Sutton Group Realty Systems and received lots of positive feedback. 


Sample Assignment Math Page


Below is a Sample of the Schedule B - Form 150

Hope it helps.
 
We are working with a Purchase Price of $460,000 Example
 
The Payments
 
Purchase Price of the Transaction
  • The Orea form uses a "global" purchase price for the total purchase price of the APS PLUS the profit the assignor receives on the assignment
 
Purchase Price of Assignment is made up of:
  • Assignor's Profit
  • Deposits under the APS
 
Assignee pays:
  • Deposits repaid to Assignor
  • Profit paid to Assignor
  • Balance of purchase price of the APS to the Builder/Seller
  • Final Adjustments from APS to Builder
 
EXAMPLE
 
 
  • Original APS with a Purchase Price of $400,000 and $40,000 of deposits already paid by Assignor
  • "Assignment" has purchase price of $460,000 now
  • Assignee repays Assignor $40,000 for the deposits and $60,000 "profit" for the total of $100,000
  • Assignee pays to Builder/Seller outstanding $360,000 under the APS
  • Total paid BY Assignee = $460,000

Realty Tax Clauses


Realty Tax Bills (assessed)
If the Property has been separately assessed for property taxes, the Seller agrees to provide, prior to the date for examining title, a copy of the latest tax bill received for the Property, together with proof of payment of the property taxes as they will be represented on the Statement of Adjustments. In the event that the Seller fails to provide said tax bill and proof of payment within the time provided, then the Buyer shall be entitled to obtain a tax certificate from the City of Toronto at the Seller’s expense to be adjusted on closing or set off from the balance due on closing.
 
 
Realty Tax Bills (not yet assessed)
If the Property has only been assessed for land taxes and not been separately assessed for taxes for building improvements and the municipal tax department has not issued supplementary or omit tax bills, the Seller agrees that the solicitor for the Seller will hold back a sufficient amount based on a tax assessment of 1.0% of the sale price for each year, or part thereof, the Seller, or the Seller’s predecessors in title, occupied the said Property to cover the period from occupancy of the Property to the closing date herein.  The Seller’s solicitor will promptly readjust taxes upon receipt of said supplementary or omit tax bills upon receipt from the Buyer’s solicitor and remit the Seller’s proportionate share to either the City or to the Buyer as requested by the Buyer’s solicitor and to provide proof of payment if applicable.

Online Reports


Condo Assignments - FAQ
Frequently Asked Questions
Condo Assignment Basic Guidelines

*EDITABLE - Condo Assignment Offer PART 1
editable PDF Version with clauses
EDITABLE PART 2 - Schedule A Continued
download this page as well for continuation of clauses and blank schedule A pages

When does the Assignor Get Paid?


 

 
In an assignment, depending on the closing date and the terms of the assignment agreement that Assignor and Assignee agreed on, the Assignor is usually paid when:
a) the Assignee gets possession or occupancy or,
b) when the original seller approves the assignment, if applicable or,
c) when the Assignee obtains legal title.

Each case is different - it depends on the size of the deposit the Assignee has available.   In most cases the Assignee does not have a large enough deposit to cover the original deposit with the builder plus the difference in the original purchase price and assignment price (profit for the assignor).  The assignor will most likely have to wait until closing - legal change of title - when an actual mortgage for the assignee can be registered.
 
 

When does an Agent Get Paid on an Assignment?
 
It depends on the deposit the Assignee has available to put down with the offer.   The brokerage usually asks to get paid at the time of the Assignment Closing (not the actual closing with the Builder).  However --- in cases where the assignee has a smaller deposit the agents may have to wait until final builder close.
 
Make sure you put a clause in covering when the brokerages will be paid.      Parties agree that commission is payable upon the "Assignment Closing" date.
 
 
*** Assignor's usually ask for a large deposit to Assign their Agreement ***  Just as they were asked by the Builder for a Larger Deposit - usually paid in 2 or 3 parts.
 

 


What is Buying a Condo By Way of Assignment?


 

An Assignment means you are buying a "right" to own a condo that is not in the Land Registry System yet.   usually the condo has been built or it is not ready for occupancy and the building has not been registered.

This "right" is just a paper transaction and not the transfer of the actual property.

The closing of the Assignment occurs BEFORE the condo is registered.   The individual who buys the "right" will eventually close and register their ownership of the condo at some later date.

 


Assignment Offer Sample Schedule B


 

When completing an "Condo Assignment Offer" you might find these ready made Schedules handy. 

Complete the Assignment to Agreement Offer form in Real Web Forms or Easy Offer -  Add your normal clauses such as Conditional upon Financing and Solicitors Approval and then consider adding the Schedule below.

Also check the TREB Listing (if there is one) - just in case the Agent has loaded his/her own Schedule of Assignment Clauses

 << Download Sample Schedule in pdf >>

 - or -

<< Shub - Lawyers Semi Editable Version >>

 

The Builder wants to ensure the new buyer is financially capable of closing in the original buyers position.   Therefore, The Builder will send you a list of items required before written approval is given by the builder - such as buyers photo id, personal information and a mortgage pre-approval or committment.

 

Not all Lawyers understand the complexities of an Assignment Closing
 

Get Expert Advice:  Stephen Shubb From "Shubb Law Firm" http://www.homelegalcost.com
teaches a Course on this Topic and he is a practicing lawyer as well.  

Tel:  (416) 222-1882 or Cell: (416) 520-6120

 

 

  • Need to Edit?    Instead of picking one of the Schedules above, we have posted the clauses below so you can pick and choose - and copy and paste into your own offer - using ezoffer or webforms.

 

 


Standard Assignment Clauses That Might Come in Handy to Copy and Paste


 

The parties acknowledge that the Assignor is selling the subject property based on the Assignor's contractual rights under an Agreement of Purchase and Sale with the Builder (Name Builder) and Assignor warrants that all deposits have been paid, together with all obligations satisfied, in according with the terms with the builder up to the present time, there being no money owning for any extras or upgrades ordered.


This agreement is conditional for a period of five days from acceptance upon the Assignee confirming by written waiver to the Assignor or Assignor's agent (within such give days) that the terms of this agreement have been approved by the lawyer for the Assignee. Should such waiver not be delivered, this agreement will be null and void and the deposit returned to the Assignee forthwith without interest or deduction.


THIS OFFER IS CONDITIONAL for seven (7) business days following acceptance of this offer upon the Buyer or his Agent being able to arrange satisfactory financing, otherwise this offer shall become null and void and the deposit money shall be returned to the Buyer in full without interest or deduction. This condition is included for the benefit of the Buyer and may be waived at his sole option


The Assignor shall provide a full copy of the Builders Agreement to the Assignee within Two (2) business days following acceptance of this offer.


THIS OFFER IS CONDITIONAL upon the approval of terms hereof and approval of the terms and conditions of the Builders Agreement by the Buyer's solicitor. Unless the Buyer gives notice in writing delivered to the Seller within seven (7) business days following acceptance of this offer, that this condition is fulfilled, this offer shall be null and void and the deposit shall be returned to the Buyer in full without interest. This condition is included for the sole benefit of the Buyer and may be waived at his option by notice in writing to the Seller within the time period stated herein.


The closing date of ________________________, 2013, refers to the date for completion of this assignment from the Assignor to the Assignee and on such date, the Assignee will pay to the Assignor's solicitor in trust a certified cheque as a further deposit of ______________ to be released to the Assignor upon the completion of the assignment consented to by the Builder. The Balance of the proceeds due to the Assignor will be paid to the Assigner's lawyer in trust by certified cheque upon final closing with the builder.


On the assignment completion date, Assignee and Assignee's lawyer will provide a written undertaking to the Assignor not to complete the purchase with the builder unless such certified cheque for the balance due to t Assignors is first delivered (on the final closing day with the builder) to the Assignor's lawyer to be held in escrow pending written fax confirmation that the purchase from the builder has been completed.


On or before the completion date of the assignment, the Assignor will provide:

1. Pre-delivery inspection documents including Tarion warranty certificate, and any deficiency list
2. Disclosure documentation including draft condominium documents and sketch for layout of the unit
3. Any keys, access security cards or remote controls
4. any written notices to or from the builder since the original agreement with the builder was signed
5. Undertaking that no money is owned for extras or upgrades, that all deposits have been paid as required by the builder's agreement and that copies of any amendments or written notices which might affect the builder's agreement have been provided to Assignee.

Upon completion date of the assignment, the Assignee will provide:

1. If applicable, a series of post dated cheques and any other items to satisfy occupancy.

2. A personal undertaking to the Assignor to provide a copy of the final statement of adjustments (upon final purchase closing of the condominium) to the Assignor's solicitor and to provide a certified cheque to the Assignor delivered to the Assignor's solicitor for the appropriate portion of interest credited in the final closing adjustments which reasonably applies to the deposits held by the builder prior to the assignment completion date.

The Assignor warrants that they are current will all payments and obligations to the Developer and agrees to transfer the Assignor's rights, title and interest in the Developer's Agreement to the Assignee for the consideration herein:

The Assignee understand that the monthly interim occupancy fee shall not exceed $_____ per month to the builder, Assignor agrees to pay any difference between the time of occupancy and final closing date with the builder.


The Assignee will pay all final closing costs and adjustments to the Builder on final closing.

Assignor agrees and acknowledges that commission shall be payable at time of assignment closing. 

 

 


Other Helpful Forms and Clauses


Other helpful Forms and Claues that Mr. Shub Provides


http://www.homelegalcost.com/formclause.asp


Online Reports


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sample assignment schedule b