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Assignment Sales in Ontario, Explained
2 min readPublished Updated
Quick answer
An assignment sale is when the original buyer of a pre-construction home (the assignor) sells their purchase contract to a new buyer (the assignee) before the building closes. The assignee takes over the deal and pays the assignor their deposits plus any negotiated profit. Assignments need the builder's consent and usually an assignment fee, and they carry specific HST and income-tax implications — get legal and tax advice first.
How an assignment works
Instead of buying a finished home, the assignee buys the right to complete someone else's pre-construction contract. At final closing they close directly with the builder and take title.
Costs and consent
- Builder consent — most agreements require it and charge an assignment fee
- You repay the assignor's deposits plus any profit
- Legal fees for both sides
- Real estate commission, if an agent is involved
HST and tax — get advice
Assignments can trigger HST on the assignment amount and the profit may be taxed as business income rather than a capital gain. The rules are nuanced — always confirm with a real estate lawyer and an accountant before signing.
Buying an assignment safely
- Ask for the original agreement, every amendment and the deposit receipts, and have your lawyer review them before you sign
- Confirm the builder's consent terms, fee and any deadline, and make your agreement conditional on consent
- Remember the original 10-day condo cooling-off period has usually ended, so your review happens before signing
- Check the builder's licence and history in the HCRA's Ontario Builder Directory
- Budget for reimbursing the deposits at signing, land transfer tax on the total you pay, and closing adjustments
Key takeaways: assignment sales in Ontario
- An assignment sells the contract, not a finished home.
- The builder must usually consent and charges a fee.
- The assignee repays deposits plus any profit.
- HST and income-tax treatment need professional advice.
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Assignment sales in Ontario: frequently asked questions
What is an assignment sale?
Selling your pre-construction purchase contract to a new buyer before the building closes, so they complete the deal with the builder.
Do you pay HST on an assignment?
Often yes — HST can apply to the assignment, and profit may be treated as business income. Confirm with a lawyer and accountant.
Why buy an assignment?
To get into a project that's sold out or near completion, sometimes below current market, without waiting years from the original launch.
Published by Summitly, the website of Coldwell Banker Summit Realty, Brokerage, registered with the Real Estate Council of Ontario (RECO); an independently owned and operated Coldwell Banker franchise. Broker of Record: Waqar Afzal. Questions or corrections: our contact form. How we write and check these pages: editorial policy.
Cite this guide
Summitly Editorial. (2026, June 4). Assignment Sales in Ontario, Explained. Summitly (Coldwell Banker Summit Realty, Brokerage). https://www.summitly.ca/guides/assignment-sales-ontario
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