There has been a rapid increase in assignment sales listings in the GTA. But what are assignment sales and what benefits do they provide to sellers and buyers?

An assignment is when a Seller sells their interest in a property before they take possession – in other words, they sell the "contract" they have with the Builder to a new purchaser. The Buyer of an assignment is essentially stepping into the shoes of the original purchaser. One major component of assignment listings is that they cannot be advertised on the MLS or on any of the major real estate portals. To find these listings, you would have to either turn to realtors in your network, or secondary advertising platforms.

Sometimes, the original purchaser doesn’t have the funds or can’t get the financing to complete the sale, and it’s cheaper to assign the contract to a new purchaser, than it is to renege on the sale. Assignment sales can allow buyers to purchase a property at a bargain price. Sellers have little leverage given that transaction numbers are low, interest rates are high and some sellers overcommitted to new projects with the expectation they would be able to reassign them at a profit. The seller would face financial issues if they fail to find a buyer.