Assignment sales were a hot subject just a few years ago. Assignment sales, usually for new condos, take place when a Buyer sells their interest in a property BEFORE they take title through registration. They were popular until Revenue Canada stepped in to rule that these sales were not subject to Capital Gains but instead should be taxed as income. So, why are Assignment Sales making a comeback?
The whole focus of media today is whether buying a condo is a good investment or not. Since real estate investment has outperformed the stock market in the last ten years, investment gurus have been desperate to down play real estate (vested interest?) and try to outdo each other with predictions of a real estate bubble.
ROS AND CONS TO SELLING BEFORE REGISTRATION - ASSIGNMENT: 1. The 'first buyer' will save the Land Transfer Tax with a transfer of their 'interest'. 2. The 'first buyer' will usually have to pay either an admin or transfer fee to the developer for the right to transfer their 'interest'.