Presale Assignments: What Buyers and Sellers Should Know
Buying a presale is one thing — but what if your circumstances change before completion? That’s where presale assignments come in.
In this post, we explain what assignments are, how they work in British Columbia (especially on the North Shore), and what to know before buying or selling one.
Disclaimer: The information in this guide is for general informational purposes only and does not constitute legal, financial, or other professional advice. Assignors and assignees should consult with qualified professionals for advice tailored to their specific situation.
What is a Presale Assignment?
A presale assignment is when the original buyer of a presale condo or townhome sells their contract to another buyer before the home is completed.
You’re not selling the finished property — you’re transferring the right to complete the purchase under the original terms of the presale agreement.
Who is the Assignor and the Assignee?
- Assignor: The original buyer who purchased the presale and is now assigning (transferring) their rights to another party.
- Assignee: The new buyer who is taking over the presale contract and will complete the purchase once the home is ready.
For example, if you bought a presale two years ago and now decide to sell that contract before completion, you are the assignor. The person buying your contract is the assignee.
Why Do People Assign Presales?
There are a variety of reasons an assignor might sell their contract:
- Life changes or financial shifts
- Profit-taking if the market has appreciated
- Investment strategy changes
- Needing to reallocate capital before completion
Assignees are typically interested in assignments to:
- Get into a sold-out development
- Secure a unit with a shorter wait than a brand-new presale
- Potentially buy at below-market prices
This is particularly relevant in high-demand areas like North Vancouver and West Vancouver, where new developments often sell out quickly and inventory is limited.
How Do Presale Assignments Work?
Here are the key steps and rules to understand:
1. Developer Consent Required
Most presale contracts require written approval from the developer before an assignment can occur. Some developers may allow it only after a certain percentage of the project is sold or near completion.
2. Assignment Fees
Developers typically charge a fee to allow the assignment, usually between 1% and 3% of the original purchase price. This is paid by the assignor unless otherwise negotiated.
3. Disclosure Requirements
Since 2019, the BC government requires that all assignments be reported using an Assignment Information Form to support transparency and anti-money laundering efforts. This includes the parties’ details and the price paid.
4. Subject-Free Offers Only
Assignments are not eligible for the 7-day rescission period under the Real Estate Development Marketing Act (REDMA). While an assignee may write a conditional offer, developers will not review or approve an assignment until it is subject-free and firm.
5. Tax Implications
Profits made on assignment sales are generally taxable income. GST may also apply to the assignment amount if you are selling at a gain. Assignees may need to pay GST on the original purchase price if it hasn’t already been included. It's critical to seek tax advice.
Can I Assign My Presale Purchase in North or West Vancouver?
Whether or not you can assign your presale purchase in North Vancouver or West Vancouver depends largely on the terms of your original purchase agreement and the developer’s disclosure statements.
Most presale contracts include specific assignment clauses — and some prohibit assignments altogether or allow them only under certain conditions. For example, developers may restrict assignments until a certain percentage of the development is sold, or they may require written consent and charge assignment fees (typically 1%–3% of the original purchase price).
If you're unsure whether your contract allows for an assignment, the first step is to carefully review your Contract of Purchase and Sale and any amendments or disclosure documents provided by the developer. These documents often outline the timeline, fees, and restrictions associated with assignment rights.
If your agreement prohibits assignments but your circumstances have changed — such as a job relocation or financial hardship — it’s still worth reaching out to the developer. In some cases, developers may consider alternate options, such as transferring to a different unit or negotiating a cancellation, although these are granted at their discretion.
Need help understanding your presale contract? Our team is experienced with North Vancouver and West Vancouver presale developments and can help you navigate your options or connect you with the right professionals. Reach out today for guidance tailored to your situation.
Risks of Presale Assignments
Risks to the Assignor (Seller)
- Ongoing Legal Liability: Even after assigning the contract, the assignor remains liable under the original purchase agreement. If the assignee fails to complete, the developer can pursue the assignor for performance or damages.
- Assignment Denied or Delayed: The developer may reject or delay approval, particularly if the assignment occurs before a milestone like disclosure amendment acceptance or construction progress.
- Reduced Profit Due to Fees: Assignment fees, legal costs, and potential GST on profits can reduce net earnings.
- Limited Control Over Completion: Once assigned, the assignor has limited visibility or control over the project's future — but may still be financially accountable if things go wrong.
- Restricted Marketing Options: Developers often prohibit marketing assignments on MLS or public platforms like Realtor.ca to protect their pricing strategy and sales efforts. This limits exposure and can make it more difficult to find a buyer unless you have access to exclusive or word-of-mouth networks.
Risks to the Assignee (Buyer)
- No Rescission Period: Assignment purchases are not eligible for the 7-day cooling-off period. Once your offer is firm and the developer approves the assignment, it becomes binding.
- Financing Challenges: Not all lenders treat assignment purchases the same as new presales or resales. Some may require updated appraisals or apply stricter lending criteria, particularly if the market has shifted since the original contract was signed.
- Binding Original Contract: The assignee steps into the shoes of the original buyer and inherits the terms of the original contract. Although they should receive a copy and be aware of all terms, there may be amendments or updated disclosure statements issued by the developer during the project that change unit details, estimated completion dates, or common area features.
- Developer Restrictions: Some developers place limits on assignees, such as not allowing further assignments, restricting customization options, or requiring specific legal representation.
How to Find Presale Assignments
Finding presale assignments — especially in areas like North Vancouver and West Vancouver — often requires more than just a quick MLS search.
- Many developers restrict how assignments can be advertised, typically prohibiting listings on public sites like MLS or Realtor.ca to avoid affecting the perceived value or branding of the development.
- Some assignments are listed privately, as exclusive listings shared only within agent networks or via direct inquiry.
If you’re looking for an assignment opportunity in a specific North Shore development — or anywhere in North Vancouver or West Vancouver — our team would be pleased to help. We often have early access to off-market listings and can match you with available units that meet your needs.
Final Thoughts
Presale assignments can be an effective strategy — whether you’re looking to exit a contract before completion or take over a unit in a desirable project. However, there are legal, financial, and logistical risks involved for both assignors and assignees.
If you're considering a presale assignment in North Vancouver or West Vancouver, working with a real estate agent experienced in local development rules, project timelines, and market trends can be a major advantage.
We can help you evaluate opportunities, understand the terms, and ensure your deal proceeds smoothly.