[Thesb]

I bought a 600 sq. ft. condo unit from plans a couple of years ago (my first real estate purchase), but since then I've met a wonderful woman and gotten married. Now I/we have double the income and downpayment available, and the unit size I bought back in bachelorhood may be too small for the two of us. We have no idea what's involved in "flipping" a condo, and we're not even sure it's the smart thing to do, give the current economic / real estate climate.

Whaddya think, folks? Any advice (regarding the condo, not married life, haha)?

 

[realestateadvisor]

start selling

start today to put it on the market... what was your purchase price and where? in 6 months your going to kick your self

 

[Thesb]

$217,000 (locker, no parking, 590 sq. ft unit with 200 sq. ft. terrace) - Printing Factory Lofts (hard loft, not the soft lofts being added on site).

 

[ducati0000]

wait until spring,you will see the real results of the markets value.Leasing it out is a option also but as the building ages the maintenance fees will increase.

 

[rbt]

Lots of questions here:

Do you believe prices in the market will drop? Your downpayment will go further at the bottom. A 50% loss on your condo value isn't a big deal if the mega house you are buying also drops by 50%. 50% of a large value is much higher than 50% of a small value. No, I don't think prices will drop by 50% -- just used that as an example.

Do you have an assignment clause so you can unload it before interim occupancy? Are you in the unit now or does it still in the fresh "never lived in" state (slight price premium for the new condo smell).

When do you expect it to be registered? Sometimes interim occupancy can last for a year or more, particularly if it is one of the builders first large scale projects.

 

[borisp]

I bought a 600 sq. ft. condo unit from plans a couple of years ago (my first real estate purchase), but since then I've met a wonderful woman and gotten married. Now I/we have double the income and downpayment available, and the unit size I bought back in bachelorhood may be too small for the two of us. We have no idea what's involved in "flipping" a condo, and we're not even sure it's the smart thing to do, give the current economic / real estate climate.

Whaddya think, folks? Any advice (regarding the condo, not married life, haha)?

Did you get an assignment clause when you bought the plans? If not, did you even adjust your purchase agreement so that at some point you could get it?
If none of the above that you would have to wait until the condo's done and than sell it.

 

[Thesb]

I'll check the docs tonight - but, no, I didn't request an assignment clause. Not sure if it has any bearing, but the building is still under construction (we haven't even picked out upgrades yet, although the bulder sent us a notice advising us that they will be scheduling appointments "soon" - whatever that means).

 

[AKS]

I'm not sure if the person means re-assignment fee. If you sell before the condo is signed over to your name. Builders usually have assignment fee. It might not be written in the documents, so you might have to call the builder to find out.

 

[rbt]

I'll check the docs tonight - but, no, I didn't request an assignment clause. Not sure if it has any bearing, but the building is still under construction (we haven't even picked out upgrades yet, although the bulder sent us a notice advising us that they will be scheduling appointments "soon" - whatever that means).

From what you describe, you may have 2 or more years before you take title (ownership) of the unit. You can only sell a condominium that you hold title on. You *might* be able to sell the agreement to purchase a condominium, the contract you signed but that depends primarily upon the contents of that agreement and often the mood of the developer.

The developer will typically, even with an assignment clause, have a number of restrictions on the sale including the ability to reject your buyer for any arbitrary reason. At very least there will be a number of fees charged by the developer for various bits of paper work.

The restrictions of the sale will be specific to your agreement. I strongly suggest you speak to your lawyer to help you interpret your agreement for restrictions and fees followed by the developer to see what their mood is (how flexible they are on those restrictions) before contacting a Realtor, and I give this advice as a Realtor.

Assignment of a contract is very very different than selling a condominium. You're selling a "condominium future", not a property. There are a lots of ways you could get into trouble that don't exist for typical sales of title.
For your own protection, please be darn sure to deal with a lawyer and Realtor who have experience in selling agreements to purchase.


Really, if the developer isn't happy with your buyer and they cannot unload the property onto someone else due to a down market then you might find yourself in a legal battle a few years down the line.

 

[lowesthangingfruit]

From what you describe, you may have 2 or more years before you take title (ownership) of the unit. You can only sell a condominium that you hold title on. You *might* be able to sell the agreement to purchase a condominium, the contract you signed but that depends primarily upon the contents of that agreement and often the mood of the developer.

The developer will typically, even with an assignment clause, have a number of restrictions on the sale including the ability to reject your buyer for any arbitrary reason. At very least there will be a number of fees charged by the developer for various bits of paper work.

The restrictions of the sale will be specific to your agreement. I strongly suggest you speak to your lawyer to help you interpret your agreement for restrictions and fees followed by the developer to see what their mood is (how flexible they are on those restrictions) before contacting a Realtor, and I give this advice as a Realtor.

Assignment of a contract is very very different than selling a condominium. You're selling a "condominium future", not a property. There are a lots of ways you could get into trouble that don't exist for typical sales of title.
For your own protection, please be darn sure to deal with a lawyer and Realtor who have experience in selling agreements to purchase.


Really, if the developer isn't happy with your buyer and they cannot unload the property onto someone else due to a down market then you might find yourself in a legal battle a few years down the line.

YEah, sounds like what ur on the hook for is a "promise" of a condo at some point in the future and that's essentially what ur selling if you want to sell.

I guess the bigger question is do you need to sell ?? That is, do you need to jettison this paper contract you have right now so that you and your lovely wife can live happily ever after ?? If you do and want to do that, then it's a moot point, just do it.

 

[rbt]

YEah, sounds like what ur on the hook for is a "promise" of a condo at some point in the future and that's essentially what ur selling if you want to sell.

I guess the bigger question is do you need to sell ?? That is, do you need to jettison this paper contract you have right now so that you and your lovely wife can live happily ever after ?? If you do and want to do that, then it's a moot point, just do it.

We need to advise this person to speak with his lawyer again. The fees and options available are going to be specific to his contract.

 

[yyzer]

You can only sell a condominium that you hold title on.

This is indeed true...another way of saying it is, you can't sell something you don't own yet...and you only get ownership when title is transferred from the builder to you...

Hence, the only option is the assignment of the Agreement of Purchase & Sale, as others have noted..

Definitely have your lawyer review, it may be simpler just to hold it for now...whatever 'recession' we will have to endure, it may be over by the time you get the keys for your unit..