Understanding Assignments of Real Estate Contracts
Assignments aren’t a common practice in real estate — but they do come up. Life changes: buyers relocate, financing falls through, or personal plans shift. When that happens, some people explore whether they can transfer (or “assign”) their purchase contract to someone else. Whether that’s possible depends on the language in your agreement — and the seller’s approval.
But while the concept may seem straightforward — passing a real estate contract from one buyer to another — the rules around contract assignments in North Vancouver and West Vancouver are anything but simple.
In fact, assignment rights are tightly regulated in BC due to past concerns around “shadow flipping” and a need for greater seller protection and transparency. If you're buying or selling property on the North Shore, here’s what you need to know about how assignments work — and when they might apply.
Disclaimer: This article is for general informational purposes only and should not be considered legal advice. Assignment rights and obligations can vary depending on the terms of your contract and the specifics of your transaction. Buyers and sellers should consult a licensed real estate professional and/or legal advisor for guidance tailored to their situation.
What Is an Assignment?
An assignment of contract happens when a buyer (the assignor) transfers their rights and obligations under a purchase contract to another buyer (the assignee) before completion.
- The assignor is the original buyer named in the contract.
- The assignee is the new buyer who steps in and completes the purchase.
In both North Vancouver and West Vancouver, this process lets someone else take over your contract and eventually receive title — but only if the terms of the agreement (and the seller) allow it.
Shadow Flipping & Why the Rules Changed
Assignment clauses came under the microscope in the mid-2010s when BC’s real estate market — especially in high-demand areas like West Vancouver and North Vancouver — became overheated. Some buyers began assigning contracts to other buyers for a profit without informing the original seller, a practice known as “shadow flipping.”
To curb this and bring more fairness and transparency to the market, the Real Estate Services Act was amended in 2016. It is now illegal to assign a contract without seller consent and proper notice. The BC Real Estate Association (BCREA) responded by introducing Clause 20.A into its standard contract.
The Standard Assignment Clause (Clause 20.A)
This clause, now standard in most transactions across Greater Vancouver, reads:
“The Buyer and the Seller agree that this contract:
A. must not be assigned without the written consent of the Seller; and
B. the Seller is entitled to any profit resulting from an assignment of the Contract by the Buyer or any subsequent assignee.”
Unless this clause is specifically removed or amended, you cannot assign a contract in North Vancouver or West Vancouver without the seller’s written permission — and you won’t keep any profit.
Notice to Seller Regarding Assignment Terms
If an offer removes or changes the standard assignment terms in Clause 20.A, the seller must be presented with a Notice to Seller Regarding Assignment Terms at the same time the offer is presented.
This is a legal requirement under the Real Estate Services Regulation and is intended to ensure sellers fully understand:
- If the contract may be assigned without their consent
- Whether they are entitled to any profit made by the buyer through an assignment
Sellers should review this notice carefully and consider seeking independent legal advice before accepting any offer that does not include both standard assignment protections. If you're working with a licensed real estate professional, they are required to explain how the offer handles assignment rights.
What This Means for Buyers and Sellers
For Buyers (Assignors):
- Assignments are generally not permitted unless explicitly approved by the seller.
- Any profit from an assignment typically belongs to the seller, not you.
- If your circumstances change and assignment isn’t allowed, you may still be obligated to complete the purchase — or risk losing your deposit and being liable for damages.
For Sellers in West or North Vancouver:
- This clause protects you from being caught off guard if a buyer tries to pass along your deal.
- If you allow an assignment, and you do not agree to amending clause 20.A - B, you’re entitled to any uplift or profit made.
- Always consult your agent or legal advisor before agreeing to any changes.
Why the Contract Name Matters — and What to Consider
It’s important to note that the buyer named in the contract must match the party taking title at closing. This means you cannot simply have someone else—such as a family member, business partner, or company—register the property in their name
This applies to all standard transactions across West Vancouver and North Vancouver, unless the assignment restrictions are specifically modified in the contract.
Planning Tip for Buyers:
If you're entering into a contract but are uncertain about whose name the property should ultimately be registered in—perhaps you're deciding between a personal name, joint ownership, or a company—you may want to discuss with your Realtor whether it makes sense to amend Clause 20.A to allow for assignment without seller consent. This provides flexibility before the contract is firm, rather than trying to navigate assignment restrictions later.
What About Pre-Sale Assignments?
Assignments work differently when buying pre-sale condos or homes from developers. These fall under the Real Estate Development Marketing Act (REDMA) and follow different rules. In pre-sale situations, the developer must outline assignment rights in the disclosure statement, and may collect detailed information about both assignor and assignee.
Thinking of assigning a pre-sale? Read our Guide to Pre-Sale Assignments in North and West Vancouver
(It covers what’s allowed, what to watch for, and how developers typically handle consent.)
Final Thoughts: Know Your Rights Before You Assign
If you're navigating the possibility of an assignment in North or West Vancouver, it’s essential to understand your rights and obligations before making a decision.
Read your contract carefully, ask questions, and seek professional guidance when needed — especially when it comes to assignment clauses, profit entitlements, and seller consent.
Whether you're in the early stages of planning a purchase or just want to understand how assignments work, our team is here as a resource. We’re always happy to help clarify the process and point you in the right direction.
Have questions about how assignment rules work on the North Shore?
Feel free to reach out — no pressure, just clear information when you need it.