(Ontario)
Question:
In regards to the assignment clause below, would this clause be added to the Agreement of Purchase and Sale between the assignor and the assignee?
The Buyer acknowledges that the Seller has purchased the property by way of a prior accepted Agreement of Purchase and Sale, a copy of which is attached as Schedule “_____” hereto, and the Seller is assigning the Seller’s rights thereunder to the Buyer. Upon acceptance of this Offer, the Seller shall give written notice of Assignment to any other parties affected by this Agreement. If the Seller is unable to complete the transaction by reason of default of the party from whom the Seller has purchased the property, the Seller shall not be liable for any damage or loss incurred by the Buyer, and this Agreement of Purchase and Sale shall become null and void and the deposit shall be returned to the Buyer in full without deduction.
Answer:
There is actually an “Assignment Agreement” which deals with this in greater detail upon the assumption that it is an unregistered condominium. It deals with a variety of additional issues, not just the actual assignment itself.
It’s important to remember, that all contracts can be assigned unless the original Seller has included a clause which would prevent an assignment.
Usually, assignments are prevented unless the original Seller consents, and they will do so, only upon their own terms.
Brian Madigan LL.B., Broker