Step 1: Condo Assignment Consultation - for Sellers
See below for BUYERS
Please contact me, Dennis Paradis, at 416-399-5832 (cell/text) for an on-phone consult about your plans to sell or buy an assignment property. Or, email me to call you after you send your info form about your condo - see Step 2. Please specify in your email call-back times you prefer.
Consult usually requires 15 - 30 mins.
We will review the following items and answer your questions or discuss any concerns you may have about the requirements and process:
1a. Realty Fees - Listing Side: 3.0 % - 4.0 % plus HST - based on your new assignment selling price. Discounts of up to 1% may apply to make the listing fee as low as 3%.
1b. Realty Fees - Buyer Co-op Side: 2.5% plus HST - based on your new assignment selling price.
Total Realty Fees (Listing + Buyer): 5.5 - 6.5% plus HST
Listing Fees may be lower based on several factors - MLS available (permission to use), closing date, multiple unit discounts, advanced payments.
2. Listing Agreement period is a minimum of 6 months - depending on the market and starting season it takes 3-4 months to sell and then get thru the builder approval process.
3. Your builder allows Assignments and has given you permission "in principle" to assign in writing (email is fine). They always reserve the right to "final approval "of your new buyer (assignee) based on a credit check and proof of financial pre-approval.
4. Net Proceeds paid out usually at Final Closing - Net Proceeds is your Profit (sell price less the buy price and selling expenses). In addition, you get back all the deposits you made to the Builder. It is not unusual now to have the Net Proceeds paid in advance well ahead of final closing - see below ...
(unlike deposits, this is money NOT held in trust and can be used/spent by the Assignor)
These payouts are partial or complete payouts of what is owed the Assignor:
1. Builder Acceptance Date (earliest settlement date) This kind of deal is trending up in frequency. All my assigns paid out in advance in 2018 & 2019.
2. Final Closing (latest settlement date) after condo registered and the title is transferred to Assignee. At Final Closing, Assignor and Builder get paid by the Assignee. The Amount is, of course, the total owing either Assignee or Builder at this point, minus any partial payouts, if any.
3. Any time in between 1 & 2 above.
Note: Besides the Timing of Advance Payment, the Amount is also negotiable. Example. advance payment of all deposits assignor paid builder but profit paid at final closing.
Step 2: Please Complete Your Condo Profile
If the Preliminary Consult (Step 1 above) looks good (to both of us) then I will need you to provide more information about your property. These details are used in Step 3 to establish your property market value and list price.
If you are ready, please complete the form:
Step 3: Consult by Phone on Market Value & List Price
(More details below)
After we agree on the Market Value & List Price and the terms of the Agreement, the next step is to Complete the Assignment Agreement, Step 4, below.
Step 4: Assignment Agreement
There has been no cost or obligation for you up to this point.
To proceed from here, we need to commit to working together via a Listing Agreement and related documents, e.g.; Working with a Realtor.
The Listing Agreement (TREB Form 200a) is the same as used for authorizing an agent to list and sell a condo resale. The MLS Data Information Form (291) is also needed (even if MLS is not allowed) but with important differences from resale when it comes to the data available to complete the form, eg; condo fees and property taxes are only estimated when the condo/project is not yet built and registered.
Step 5: Implement Your Premium Assignment Marketing Plan
Marketing Plan is activated
Step 6: Offers Negotiated, Conditions Managed and Deal Closed
We receive offers, negotiate a deal, manage the conditions, get final approval from the Builder whereby the Assignee (new buyer) "steps into your shoes" as the assigned buyer of the property.
All costs associated with the purchase going-forward are now borne by the Assignee (new buyer) including future deposits if any, and occupancy fees and of course final closing costs.
Then, we all wait for the date when monies are dispersed (as explained in Step 1 - part 4, above).
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