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    Smart Buyer Guides · ~4 min read

    Assignment Sales in Pre-Construction, Explained

    What an assignment is, when a builder permits one, and the costs involved.

    Quick answer

    An assignment transfers your rights under the agreement of purchase and sale to another buyer before closing — you sell the contract, not the house. Most builders require written consent and charge a fee, and profits may be taxed as business income with HST applying.

    The mechanics

    An assignment transfers your rights and obligations under the agreement of purchase and sale to another buyer before the home closes. You are selling the contract, not the house.

    Builder consent

    Almost every builder agreement requires written consent and charges an assignment fee. Some prohibit assignment entirely until a construction milestone. Read the clause before you plan around it.

    Tax

    Assignment profits may be treated as business income rather than capital gains, and HST can apply to the assignment amount. Get accounting advice before listing.

    Pricing referenced above is preliminary VIP pricing and subject to change without notice. We do not represent the builder. Register below for the official Crown of Caledon price list and floor plans.

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    Call Us

    289.400.0110

    Email

    Info@condocircle.ca

    Location

    Hurontario St & Hwy 410
    Caledon, Ontario

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