What's an Assignment and How Does it Work?
An assignment is basically re-selling a property before it is complete and ready to be occupied. A good example is the purchase of a condominium during the construction stage.
An Assignment Sale is when the original purchaser sells and/or transfers all the rights and obligations of the original contract between themselves and the Vendor to another party before the official completion date for the property. Title transfer for the property does not occur until the city issues the necessary permits and the unit is ready for physical occupancy.
In an assignment sale you are only purchasing or selling the contractual rights to a property not the physical property itself and all its rights and obligations until the property is complete.
Example:
John Smith buys a condominium in a project which is in the pre-construction stage in 2004. Project is set to complete in 2006.
Original Purchaser = John Smith
Vendor = ABC Condo Developer
John Smith in 2005 sells to Jane Doe his contract for a specific dollar amount and/or specific terms.
Original Purchaser = John Smith
New Purchaser = Jane Doe
Vendor = ABC Condo Developer
In 2006 when the project completes and the property is ready to be occupied, official title transfer takes place between Vendor (ABC Condo Developer) and the New Purchaser (Jane Doe).
After completion in 2006 the official new owner is Jane Doe who now has all the rights and obligations to the property which every other home owner is entitled to, and any future resales will be that of a regular real estate sale/transaction.
This is a general overview of an assignment, for more specific details click on Selling an Assignment or Buying an Assignment.