Blog by Michael Giesbrecht

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Assignment of Contract of Purchase and Sale

I attended a very informative lecture this morning on the Assignment of Contract of Purchase and Sale.  It was given by Edward L. Wilson, of Lawson Lundell LLP.  A lot of people are delving into the real estate market these days through pre-sales and assignments and there is definitely some good money to be made.  But it's an absolute must to go in with your eyes wide open.  If you are considering the purchase of a pre-sale, with the intention of assigning it later on, make sure that the developer allows for this and find out at what cost.  Keep Section 5.13 of the contract in mind as well as it states that "The Assignor acknowledges that the provision of the Developer's consent does not relieve the Assignor from the purchaser's obligations under the Contract in the event the Assignee is unable or fails to complete the contract."  In other words, you could end up holding the bag if the person who took over from you defaults.  There are lots of other things to keep in mind (ie. GST, PTT) and that is why it is good to have a qualified realtor on your side, walking you through the process.



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