If you have purchased a property in a development which is still under construction and wish to sell prior to closing, you must do so by way of an assignment sale. You do not have title (ownership) and the condo is not yet registered so you are selling (or assigning) your Purchase Agreement. Here are the Steps to Assign Your Condo:
Get the Builder's Consent - In Principle (there is also a Final Approval)
The first step is to confirm and clarify the terms of your contract as to the conditions and costs associated with an assignment.
We can help you make your request to the developer's lawyer to get the builder's permission for you to assign your agreement, in principle. A typical builder assignment fee is 1% of the original purchase price plus the builder's legal fees ($400 or more). Some Builders have waived the assignment fee as a marketing incentive. Check your Agreement. This will usually be in an Amendment.
We have created a process that aims at completing the assignment prior to your interim occupancy date. The Occupancy period can be from 6-24 months or more. The new buyer would assume the occupancy costs from the date of acceptance of the assignment until closing. The new buyer would provide a reasonable deposit to secure the transaction. They would close and pay closing costs including land transfer taxes, and any levies (education, utility connections, etc.) that the builder might allocate to the unit owners. You would get your deposit monies and profit at final closing (not at Occupancy). The buyer cannot get a mortgage until final closing to cover the costs to pay you (your deposit + profit) and the balance owed to the builder. See "Buying an Assignment" below.
List and Sell
Assuming that your Purchase and Sale Agreement (with the builder) allows you to assign the contract prior to completion (final closing) you should hire a Real Estate professional who has experience and expertise in handling condo assignments.
Very few Realtor's® have experience doing assignments. For an experienced Realtor® contact me, Dennis Paradis, Sales Representative, RE/MAX Hallmark York Group Realty Ltd., Brokerage, for successful completion of your condo assignment backed by a reliable and experienced team of professionals.
See my Condo Assignment Marketing Plan
If you reach the Occupancy date, we can discuss the advantages and costs of staging in detail.
Sell Before Date
Plan "A" should always be to assign you condo BEFORE reaching Occupancy. Ideally, you have at least 6 months before Occupancy is scheduled for us to get this done.
At Occupancy, it is highly recommended that you stage your unit for sale, especially if you are not planning to occupy it and it will be vacant. We have partnered with experienced stagers who can add the rental furniture and extras to sell your unit in weeks rather than months and you will often get a higher price. Staging costs are lower than most people assume. You can get free estimates. You will usually cover the cost of staging by the faster sale (fewer occupancy costs) besides getting better and more offers. This option only applies if you are into your interim occupancy period. Otherwise, there is no access and no showings. These restrictions require extra effort to create effective marketing materials compared to a standard resale.