6 Tips to buy new condos on assignment sale?
Purchasing a pre-construction unit is quite common, before we discuss how to handle such transaction, let us understand the meaning. As assignment sale refers to the sale of a contract stating the purchase of a pre-construction condominium unit. In short, you will sell contract, once the builder registers the building, you should sell the property and along with the title.
The assignment clause of contract comes in handy when you have purchased a new pre-construction condo but must sell it before the completion of construction due to any reason.
1- It is not a resale condo
When you buy an assignment, it means you will get the ownership of the unit only after the final closing date which is why it is not like a resale purchase.
2- Consider the certain dates
-Assignment closing date- when your assignment sale transaction with the original home buyer is completed.
-occupancy closing date-the first closing date when the buyer gets the condo’s key from the builder.
-final closing date- is when the title of the property will transfer to the buyer’s name.
– an assignment closing date when purchasing a new unit is usually before or after occupancy closing date.
3- Make sure you are financially stable and pay 20% down payment which is paid by the original purchaser to the builder and also you have enough money to pay the difference amount between the current asking price and its original value.
4-You need the builder approval to complete the transaction
5- For the builder to approve the transaction, you must provide proof of mortgage approval.
6- Do not be in hurry, it is a new investment .it is essential that you consider all the aspects before sign the papers.
In conclusion, if you really like location and you are financially stable to buy an assignment condo, check the original agreement and make sure there is an assignment clause, the next step is to follow the legal part .