What is an Assignment?

After an original purchase agreement is firm and binding – An assignment of an Agreement of Purchase and Sale is when the original purchaser from the Vendor/Developer agrees to allow a new purchaser to take over the contract with the Vendor/Developer prior to building completion.  The fundamentals of the Purchase Agreement remain unchanged after an assignment. This includes deposits held in trust, commissions payable and any other agreements. The Assignee must reimburse the Assignor for deposits paid to date.

Restrictions:

  • The Assignor will not place any signage on or near the Project or place advertisements on the internet, or in any newspapers, magazines or other print publications (including MLS listings) or solicit offers from the general public with respect to the Unit and the assignment of the Purchase Agreement.
  • Assignments are at the sole discretion of the Developer once all the units in the development have been sold.
  • The Vendor/Developer does not assist or facilitate the ‘assignor’ in finding an ‘assignee’.
  • No assignment by the Purchaser of the Purchaser’s interest in the Unit or this Agreement or direction of transfer to any other person shall release the Purchaser from any of the Purchaser’s obligations or liabilities under the Purchase Agreement. The assignor is not released from liability should the Assignee does not complete the requirements of the Purchase Agreement.
  • If you have approval for assignment, all assignments must be made prior to May 29, 2018.

How it works:

Assignor: An Assignor is the original buyer of the unit from the Builder/Developer

  1. Assignor cannot place advertisements on the internet, or in any newspapers, magazines or other print publications (including MLS listings) with respect to the Unit and the assignment of the Purchase Agreement.
  2. The Vendor requires the Assignor and Assignee to sign the Vendor’s consent form and or the Vendor’s Assignment Agreement.
  3. The Assignor is required to obtain Vendor’s consent and pay applicable consent fee (equal to 1% of the original purchase price). This amount plus GST is paid directly to the Vendor, Qualex-Landmark Union Inc by certified cheque or draft upon assignment
  4. The Assignee is required to pay the Assignor an amount equal to the deposits already paid to the Vendor.
  5. There may be consideration payable by the Assignee to the Assignor for the assignment of the Agreement in an amount determined by the assignor.
  6. Provide the Assignee with original Agreement of Purchase and Sale and all related documents including the Condominium Documents and inclusive schedules
  7. The Assignor is not released from their obligation to the Vendor if the Assignee does not complete the purchase.

Assignee: An Assignee is the buyer of the Agreement of Purchase and Sale from the Assignor

  1. Should obtain original Agreement of Purchase and Sale and related documents from Assignor. Review obligations carefully. Have a lawyer review.
  2. The Assignee is required to pay the Assignor an amount equal to the deposits already paid to the Vendor.
  3. The Vendor requires the Assignor and Assignee to sign the Vendor’s consent form and or the Vendor’s Assignment Agreement.
  4. The Assignee may be required to prove that they can obtain a mortgage.
  5. The Assignee pays the following to the Builder on final closing: balance of Purchase Price,  two months maintenance fee’s in advance, Guest Suite Contributions, Property Tax adjustments, legal conveyance fee’s and other amounts set out in the Purchase Agreement
  6. Assignee takes possession of unit and all applicable financial obligations

To inquiry about assignment eligibility, please contact markservice@qualex.ca

This information is provided for general information purposes only and is not to be relied upon or construed as legal, real estate, or other professional advice or opinion. Please refer to your Purchase Agreement Addendum A for more information on assignments.

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