Buying a pre-construction condo is different from buying a resale unit.The process is as unique as the benefits, which is why buyers should take the time to learn about the contract, costs, and timelines involved.Simply put, your buyer is purchasing the right to own the condo when it’s built.Tags: Light On Yoga Book ReportOperations In Business PlanIslam And Christianity Similarities EssayBiographical DissertationFindings And Discussion DissertationHate The Crime Not The Criminal EssayHomework Help EgyptCase Studies Nursing DelegationAmerican Deep Essay From Hip Opinion Teenager VisionCurry College Application Essay
In particular, there’s been increased scrutiny of these transactions in the Vancouver area. C.’s regulators have been looking at cases where buyers with early access to pre-con units have apparently sold their purchase contracts, made large sums of money, and avoided paying taxes on them. Canada Revenue Agency has been actively involved in these cases.
Unfortunately, the suspected offenders include Realtors. If you’re involved in an assignment sale, it’s crucial that all transactions be legal and above board. Know your taxation responsibilities, and seek clarity if you need to.
We’ve established that you can, in fact, sell your pre-construction condo.
But before I move on to discussing the “how”, let’s talk about the scenarios where selling your unit might make sense.
I’m always happy to give pre-con purchasers the rundown. That said, there’s one area that can be confusing to even long-time real estate investors.
I’m talking about buying and then selling a pre-con unit. The short answer is yes—these transactions are known as “assignment sales.” But there are a few things you should know if you’re considering selling on assignment.
The purchaser of a pre-construction condo investment will sometimes choose to sell their contract with the builder before they officially take possession.
Because they don’t yet own the condo itself, they are selling their Agreement of Purchase and Sale with the builder to a new buyer.
During an assignment sale, these two participants are known as the assignor (the seller) and the assignee (the buyer).
Things get more complicated with the introduction of another party (the developer, who has to agree to the transaction).