With a lack of condo listings, potential buyers are often forced into 'multiple offer' scenarios. And who can blame them for not liking the situation.
Another option is looking at the Assignment market. That is buying a property that is not registered. Instead you buy the 'right' to buy the property when it registers. The paper!! That makes many buyers nervous. More so, it makes lawyers who do not do this type of transaction very nervous as well, to the point of advising their clients not to do the deal! And agents who do not understand the transaction and who can not draw up the contract also stay clear.
Our experience at RE/MAX Condos is that we can make the deal happen!! Yes it is a little more complicated but we have never had a deal not close and a buyer not eventually owning the real property!! But the best thing about the transaction is you avoid multiple offers and over paying on the list price. This is a huge benefit in today's market.
Many of our Assignment involve the buyer moving into the condo during the 'occupancy' period, before it is registered. They pay the developer an occupancy fee (rent) instead of mortgage and condo fee payments. It is about the same. When the property registers, the buyer just converts his payments. This occupancy period can be up to a year in bigger buildings!
While the seller does not get all of his profit and deposits back until the registration date of the condo unit, he can save considerable monies in terms of land transfer taxes and closing costs which makes the wait worthwhile.
When you buy an Assignment listing, there is a period of time between when you take occupancy of your unit and when you take ownership of your unit. This is known as the ‘occupancy period’ or ‘interim occupancy’. During this period you will be requested by the developer to pay occupancy fees or ‘phantom rent’ as it is also known.This time period is usually 2-6 months.
The Assignment Option can be a win/win transaction for both the buyer and the seller.
Check out our assignment listings here
