Assignment Sales in Ontario — Complete Guide for Buyers and Sellers (2026)

What is a Pre-Construction Assignment Sale?

An assignment sale occurs when the original buyer of a pre-construction unit sells their interest in the purchase agreement to a new buyer — before the building is complete and before the original buyer has ever taken possession. The new buyer (the "assignee") steps into the original buyer's shoes, taking over all rights and obligations under the original Agreement of Purchase and Sale.

The original buyer (the "assignor") receives back their deposits, plus a profit (or loss) based on what they negotiate with the assignee. The assignee takes over the unit at whatever price is agreed, and closes directly with the builder when the building registers.

Why Do Sellers Assign?

Pre-construction buyers assign their units for many different reasons:

• →Life changes: Job relocation, divorce, family changes — the buyer no longer needs the unit
• →Financial pressure: They can no longer qualify for the mortgage at closing, or need liquidity now
• →Profit-taking: Investors who bought at VIP pricing 3 years ago, capturing appreciation without ever closing
• →Market timing: Selling before market softens, or to free capital for another opportunity

Why Do Buyers Buy Assignments?

• ✓Often priced at or below what the same unit would sell for if the building were registered (motivated sellers)
• ✓Shorter wait — building is often near completion, sometimes only months from occupancy
• ✓You can often see the actual finishes (or visit the building under construction) before committing
• ✓You take over the original deposit structure — no new deposits may be required
• ✓Builder consent typically already sorted, reducing complexity

The Assignment Process — Step by Step

1. The Parties Agree on Price — The assignor and assignee negotiate the assignment price. This typically includes: the amount of deposits already paid (which the assignee reimburses to the assignor), plus a profit (the "lift") above the original purchase price.

2. Builder Consent is Obtained — Both parties apply to the builder for consent to assign. The builder reviews the assignee's qualifications and may charge an assignment fee.

3. An Assignment Agreement is Signed — A separate legal document between assignor and assignee. This is distinct from the original APS (which governs the relationship with the builder). Both documents need to be reviewed by a real estate lawyer.

4. The Assignee Takes Over All Obligations — From assignment closing date onward, the assignee is responsible for all remaining deposits, occupancy closing, and final closing with the builder.

5. Final Closing with the Builder — When the building registers, the assignee closes with the builder as if they were the original purchaser — taking legal title and completing the mortgage.

Tax Considerations for Assignment Sellers

Assignment profits are taxable. The CRA treats assignment income as either business income (fully taxable) or capital gain (50% taxable), depending on your original intent when you purchased. If you bought with the intent to flip, it's business income. If you bought for personal use or long-term investment, it may qualify as a capital gain. Consult a tax accountant before proceeding — this distinction can be worth tens of thousands of dollars.

HST may also apply on the assignment profit in certain circumstances. This is a complex area of tax law where professional advice is essential.

How to Find Assignments

Assignments are not listed on MLS in most cases — they're a private market. The best way to access assignments is through a broker with a network of pre-construction clients who are looking to exit. Our team maintains an active list of available assignments across Ontario — register below to receive matching opportunities.