Assignment Sales in Ontario 2026: What Buyers and Sellers Need to Know

An assignment sale happens when the original buyer of a pre-construction property — usually a condo — sells their purchase agreement to a new buyer before the building closes or registers. The new buyer effectively steps into the original contract.

Why assignment activity is picking up

A meaningful number of pre-construction buyers signed agreements back in 2021-2022, near the market peak. With Ontario's condo market still soft through 2026, some of those buyers are looking to exit before their closing date arrives rather than carry a unit that's worth less than their purchase price on paper.

What buyers should check before making an offer

• Builder consent — most builder agreements require the builder to approve the assignment, and many charge a fee
• HST treatment — the original buyer may owe HST on their profit; get this reviewed by an accountant, not just a lawyer
• Financing — assignment purchases are financed differently than a resale, since there's no property to register a mortgage against until the building closes
• Full disclosure package — request everything the original buyer received from the builder, not a summary

What sellers (the assignors) should know

You're selling a contract, not a property — marketing and negotiating it is different from a resale listing, and not every agent has done one. Get your builder's assignment clause reviewed early, since some builders restrict marketing (e.g., no MLS listing) until they've approved a buyer.

Bottom line

Assignment sales can work well for both sides in a softer market, but the paperwork and tax treatment are more involved than a standard resale. Bring in a lawyer experienced specifically in assignments — not just real estate generally — before signing anything.