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
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)