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What are the steps involved to minimize the risks associated with purchasing a condo by way of assignment? Of course, I will get a lawyer to help me once (and if) I find something I am interested in purchasing. However, I like to do my homework beforehand.
If anyone has any links on this topic, please post them. I would love to read the information you have.
Finding an assignment would be, for me, the most convenient way to proceed (I absolutely have enough money to pay cash for the down payment required and I need to sell my condo in another city before I can purchase something in Toronto). The reason why an assignment would be convenient for me is that I would have an idea when the condo I am purchasing would be ready. I would have time to sell my condo and move in to my new home (I would not have to borrow money to purchase my new condo). I would prefer purchasing a preconstruction but I need a place in Toronto and I am not willing to wait about 3 years for the place to be built. Assignments involve more risks but I have to admit that I need to educate myself more on this topic to see if I really want to go that route.
Here, they give some very brief information on the potential risks associated with assignments:
http://www.fic.gov.bc.ca/pdf/alerts/ConsumerAlert200805.pdf
They mention; “consider all your options, such as whether the deposit and “lift” will be paid to the assignor upon signing the agreement or held in trust until some later date. Generally, it is preferable from the assignee’s perspective if money is released to the assignor only after the unit is built and title is being transferred”.
Do the majority of assignor agree with this (reasonable) request?
If anyone has any links on this topic, please post them. I would love to read the information you have.
Finding an assignment would be, for me, the most convenient way to proceed (I absolutely have enough money to pay cash for the down payment required and I need to sell my condo in another city before I can purchase something in Toronto). The reason why an assignment would be convenient for me is that I would have an idea when the condo I am purchasing would be ready. I would have time to sell my condo and move in to my new home (I would not have to borrow money to purchase my new condo). I would prefer purchasing a preconstruction but I need a place in Toronto and I am not willing to wait about 3 years for the place to be built. Assignments involve more risks but I have to admit that I need to educate myself more on this topic to see if I really want to go that route.
Here, they give some very brief information on the potential risks associated with assignments:
http://www.fic.gov.bc.ca/pdf/alerts/ConsumerAlert200805.pdf
They mention; “consider all your options, such as whether the deposit and “lift” will be paid to the assignor upon signing the agreement or held in trust until some later date. Generally, it is preferable from the assignee’s perspective if money is released to the assignor only after the unit is built and title is being transferred”.
Do the majority of assignor agree with this (reasonable) request?
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