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What Is An assignment Sale
An assignment sale is a real estate transaction in which the original purchaser of a pre-construction property (such as a condo or a house) sells their purchase contract to a new buyer before the property is completed and occupied. In an assignment sale, the original purchaser is effectively assigning their interest in the property to the new buyer, who then takes over the contract and becomes the new owner of the property upon completion.
The original purchaser may choose to sell their purchase contract for various reasons, such as a change in personal circumstances, financial difficulties, or the potential for a profit. The new buyer may be attracted to the purchase because of the potential for a lower price than what they would pay for a similar completed property, the opportunity to customize certain finishes, or the potential for property appreciation.
In an assignment sale, the original purchaser and the new buyer typically agree on a purchase price, and the original purchaser may be required to pay the developer any difference between the original purchase price and the sale price. The terms of the assignment sale, including the price, deposit requirements, and closing date, are outlined in an assignment agreement that is signed by both parties.