Assignment Clause
Discover what an assignment clause is in Canadian real estate, how it works in pre-construction deals, and what to consider before assigning your agreement.
May 22, 2025
What is an Assignment Clause?
An assignment clause is a provision in a real estate agreement that allows the buyer to transfer their contractual rights and obligations to another party before closing.
Why Assignment Clauses Matter in Real Estate
In Canada, assignment clauses are particularly relevant in pre-construction or off-plan real estate deals. They provide flexibility by allowing the original buyer (the assignor) to 'assign' or sell their purchase agreement to a new buyer (the assignee) prior to taking possession.Key details typically outlined in the clause include:
- Whether assignment is permitted
- Conditions for assignment (e.g., with or without the seller’s consent)
- Any associated fees (builder or developer fees can range from $1,000 to $5,000 or more)
Understanding the assignment clause helps prevent legal issues and financial losses, especially in fast-paced urban condo markets where assignments are common. Legal advice is recommended before entering or assigning such agreements.
Example of an Assignment Clause in Action
A buyer of a pre-construction Toronto condo assigns their contract to another purchaser after the unit appreciates by $50,000. The assignment clause in their agreement permits this with a $2,500 developer fee.
Key Takeaways
- Allows a buyer to transfer their purchase agreement.
- Common in pre-construction real estate.
- May require developer approval and fees.
- Useful in changing market or personal situations.
- Must be reviewed carefully with legal guidance.
Related Terms
- Assignment Sale
- Pre-Construction Condo Purchase
- Purchase Agreement
- Deposit
- Closing Date
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501 W Georgia Street (1), 595 W Georgia Street (2), and 388 Abbott Street (3) in downtown Vancouver. / Henriquez Partners Architects, Holborn Group
A rendering of the rooftop amenity space between the South Tower (left) and North Tower (right) planned for 501 W Georgia Street. / Henriquez Partners Architects, Holborn Group
A ground-level rendering from the corner of Richards Street and Dunsmuir Street. / Henriquez Partners Architects, Holborn Group
A rendering of the public plaza at the corner of Seymour Street and W Georgia Street (left) and the retained heritage Randall Building (right). / Henriquez Partners Architects, Holborn Group
A rendering of the three-level observation deck and restaurant at the top of the 68-storey hotel planned for 595 W Georgia Street. / Henriquez Partners Architects, Holborn Group
A rendering of the 63-storey North Tower planned for 501 Georgia Street (left) and the 68-storey hotel planned for 595 W Georgia Street. / Henriquez Partners Architects, Holborn Group
The ground-level layout planned for 501 W Georgia Street and 595 W Georgia Street. / Henriquez Partners Architects, Holborn Group
A rendering of the 38-storey social housing tower planned for 388 Abbott Street in Vancouver. / Henriquez Partners Architects, Holborn Group 
A ground-level rendering of the tower planned for 388 Abbott Street in Vancouver. / Henriquez Partners Architects, Holborn Group 
Renderings of the Indigenous art gallery (left) within the 38-storey social housing tower planned for 388 Abbott Street. / Henriquez Partners Architects, Holborn Group 
Attorney General and former-Minister of Housing Sean Fraser spoke about the launch of Build Canada Homes at a media event in Nova Scotia. / Sean Fraser, Twitter