5 Important Things to Consider When Buying an Assignment of Contract in British Columbia
Buying an assignment of contract in British Columbia can be one of the most exciting opportunities in real estate — especially in competitive markets where pre-construction homes and condos are in high demand. But while assignment sales can offer incredible value, flexibility, and investment potential, they also come with unique risks and legal complexities that buyers must understand before signing on the dotted line.
Whether you are a first-time buyer, investor, or someone looking to secure a property before completion, understanding how assignment contracts work in BC is critical.
In this guide, we’ll break down the 5 most important things to consider when buying an assignment of contract in British Columbia.
What Is an Assignment of Contract?
An assignment sale happens when the original buyer of a pre-sale property (the “assignor”) sells their contractual rights to another buyer (the “assignee”) before the property officially completes.
Instead of purchasing directly from the developer, you are purchasing the rights and obligations of the original purchase contract.
Assignment sales are common in markets such as Vancouver, Surrey, Burnaby, and Coquitlam where pre-construction developments are extremely popular.
1. Understand the Assignment Fee Structure
One of the biggest surprises for many buyers is the additional costs associated with assignment sales.
In many cases, developers charge assignment fees that can range anywhere from a few thousand dollars to significantly higher amounts depending on the project and contract terms.
You also need to understand:
- Who pays the assignment fee
- Whether GST applies
- Legal fees involved
- Potential commission structures
- Deposit reimbursement requirements
Many assignment contracts require the assignee to reimburse the original buyer for deposits already paid to the developer.
For example:
- Original deposit paid by seller: $80,000
- Assignment profit: $50,000
- Total upfront amount buyer may need: $130,000 plus closing costs
Understanding the financial structure beforehand can help avoid major surprises later.
2. Review the Original Contract Carefully
This is one of the most important steps when buying an assignment property in BC.
You are not just buying a home — you are inheriting the original contract terms negotiated between the developer and the first buyer.
Important clauses to review include:
- Completion date
- Estimated occupancy date
- Deposit structure
- Developer disclosure statements
- Restrictions on renting
- Financing requirements
- Potential material changes
- Right to rescind clauses
- Assignment restrictions
Some developers prohibit certain assignment conditions or require approval before an assignment can proceed.
A knowledgeable real estate lawyer and experienced REALTOR® are essential when reviewing assignment contracts in British Columbia.
3. Know the GST Implications
GST on assignment sales in British Columbia can become complicated very quickly.
Many buyers incorrectly assume GST is included in the purchase price when sometimes it may not be.
You need clarity on:
- Is GST included?
- Is GST payable on the assignment profit?
- Will the property qualify for GST rebates?
- Is the seller considered an investor?
- Could additional taxes apply?
This is especially important for investors purchasing pre-sale condos or assignment properties in fast-growing markets like Langley and Richmond.
Consulting with an accountant familiar with BC assignment sales is highly recommended.
4. Financing Can Be More Difficult
Financing an assignment property is not always as straightforward as financing a traditional resale property.
Some lenders have stricter policies regarding assignment sales because:
- The property has not completed yet
- Market conditions may change before completion
- Appraisals can fluctuate
- Developer timelines can shift
Before making an offer, buyers should:
- Get pre-approved with a lender familiar with assignment sales
- Confirm deposit requirements
- Understand occupancy fees
- Review closing timelines
- Ensure financing is available upon completion
Working with an experienced mortgage broker can make a massive difference during the assignment process.
5. Research the Developer and the Project
When buying an assignment, you are also indirectly buying into the reputation of the developer.
Not all developers are equal.
Research:
- Developer track record
- Construction quality
- Previous projects
- Completion history
- Online reviews
- Warranty coverage
- Financial stability
A beautiful marketing brochure does not always guarantee a successful project.
In markets across Vancouver and the Lower Mainland, choosing a reputable developer can significantly reduce risk and improve long-term value.
Bonus Tip: Work With a REALTOR® Experienced in Assignment Sales
Assignment transactions are highly specialized.
An experienced REALTOR® can help you:
- Analyze market value
- Understand risks
- Negotiate favorable terms
- Coordinate with lawyers and mortgage brokers
- Review disclosure statements
- Navigate developer requirements
Having a knowledgeable professional on your side can protect your investment and reduce costly mistakes.
Final Thoughts on Buying an Assignment of Contract in British Columbia
Assignment sales can create incredible opportunities for buyers looking to enter the market, secure pre-construction pricing, or build long-term wealth through real estate investing.
However, assignment contracts are more complex than traditional real estate transactions.
Before purchasing an assignment property in British Columbia, make sure you fully understand:
✅ Legal obligations
✅ Financial requirements
✅ GST implications
✅ Financing challenges
✅ Developer reputation
The more informed you are, the more confident and successful your real estate purchase will be.
Looking to Buy or Sell an Assignment Property in BC?
The Riquelme Real Estate Group specializes in residential real estate, pre-sales, assignment sales, and investment properties throughout the Lower Mainland.
If you are considering buying or selling an assignment contract in Vancouver or surrounding areas, professional guidance can make all the difference.
604-505-3177
Riquelme Real Estate Group
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