Are Assignments Allowed?

As per the terms of the Purchase Agreement, the Vendor is in no way obligated to allow the  assignment of a Purchase Agreements however, the Vendor may review requests on a case by case basis, but well in advance of estimated completion.

Deadlines:

While we have been flexible and accommodating for assignment requests over the past two years, as closings are coming soon, we want to ensure that all Homeowners are planning and or are ready for the big day! Likewise, due to the legal paperwork involved in completing the assignment, the following firm deadlines are in place.

  • All existing and approved requests for assignment: assignment agreement must be in place no later than August 31, 2019.
  • Strata Lots 01 through 105 – we are no longer accepting assignment requests
  • Strata Lots 106 through 164 – requests for assignment may be considered by the Vendor up until July 15, 2019 only
  • Purchase Agreement name changes (add or remove buyer) requests:  no later than August 31, 2019.

What is an Assignment?

After an original purchase agreement is firm and binding – An assignment of an Agreement of Purchase and Sale occurs when the original purchaser allows another individual to take over the contract with the Vendor/Developer prior to building completion, and with the Vendor’s express approval.  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.

Condo and Strata Assignment Integrity Register (CSAIR)

The Condo and Strata Assignment Integrity Register (CSAIR) is a database for assignments of purchase agreements of all residential condo and strata lots in B.C., including both pre-sale lots and completed lots.

A pre-sale purchase agreement refers to acquiring the right to purchase a condo or strata lot from a developer before the building is completed and registered with the land title office.

An assignment is the transfer of the right to purchase the condo or other strata lot.

Information Collection
The CSAIR captures information about assignments of purchase agreements of condos and other strata lots, including certain personal information on the assignors and assignees.

Developers are responsible for collecting and reporting this information on all assignments of purchase agreements.

Information in the CSAIR is kept confidential by the Ministry of Finance, but is shared with other agencies, such as the Office of the Superintendent of Real Estate and Canada Revenue Agency, to ensure assignment transactions are reported and the appropriate taxes assessed. The information collected is also used to inform future housing and tax policy.

Assignment Restrictions:

  • The Purchaser shall pay the Vendor an assignment administration fee equal to 2% of the Purchase Price plus applicable taxes. This fee is non-negotiable. (example if original purchase price was $700,000 x 2 % assignment fee = $14,000 + GST).
  • The Assignor must also pay the CSAIR registration fee of $195.00
  • The Vendor will limit assignments to five active at any time
  • 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.
  • *Vendor will allow realtors to advertise assignments via their website (but not MLS)
  • Allowing Assignments is at the sole discretion of the Developer/Vendor once all the units in the development have been sold.
  • The Vendor/Developer does not assist or facilitate the ‘assignor’ in finding an ‘assignee’.
  • The Vendor/Developer does not pay commission on assignments
  • No assignment by the Purchaser of the Purchaser’s interest in the Unit/Strata Lot 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.
  • The Assignor and Assignee are fully responsible for any tax related submissions, filings or responsibilities as a result of the assignment
  • The Assignee must be a Canadian Resident.
  • If you have approval for assignment, all assignments must be made no later than August 31, 2019

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 (except realtor website), MLS, or in any newspapers, magazines or other print publications (including MLS listings) with respect to the Strata Lot 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, however full details (Fintrac and CSAIR) of the Assignee must be provided to the Vendor in advance.
  3. The Assignor is required to pay applicable consent fee (see your purchase agreement) and CSAIR fees. These amount plus GST is paid directly to the Vendor 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 Disclosure Statement (or Condominium Documents where applicable) 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, 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
Both the Assignor and the Assignee mutually covenant and agree, at their sole cost and within no less than five days after written request from the Vendor, to promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents, information and things as the Vendor may require to permit the Vendor to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and any regulations, directives, guidelines, protocols or directions issued thereunder or as the Vendor may require under the current terms of, and any future amendments to, the Property Transfer Tax Act (BC), the Real Estate Development Marketing Act (BC), the Land Owner Transparency Act (BC) and any current or future regulations thereunder and any regulations, directives, guidelines, protocols or directions issued pursuant to any future legislation, or any directives, guidelines, protocols or directions issued by the Property Taxation Branch in connection with this assignment for which this Consent has been granted, including without limitation any and all information which may be prescribed in relation to the Vendor’s obligations to maintain a record of assignments of purchase agreements in respect of the Development.

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 Agreement of  Purchase and Sale for more information on assignments.

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