Can anyone offer some info. on selling a Pre-sale Condo. Not an Assignment just a sale before completion. Because the property hasn't closed are you just selling the offer to purchase. What's involved. Tks
Hi Daniel, I hope this helps. I purchased a one bedroom condo on assignment and then found a buyer for it prior to the building registering (still waiting). After he building registers with the city the closing is usually within 30 days. In order for the buyer to avoid paying HST, the unit needed to be rented once the occupancy permit was given (3 months ago). The unit is no longer considered a new home upon completion OF THE SALE. FYI: this condo is in Barrie, ON.
Gains on assignment not allowed in BC anymore. Since your don't own the unit it's not a sale but an assignment. Legally you are on the hook if the buyer doesn't close and in BC you can't collect more money. Usually you have a separate contract with an assignment fee or consultation fee for it. Get legal advice re exact contract wording.