Question:
I am acting on behalf of a Buyer who really needs to sell their pre-construction condo. The Developer will not consent. What can they do?
Answer:
You can assign without consent.
It is a slightly different route, it costs a little more money and there are some additional risks.
The Developer wants the assignment on their terms and conditions and wants to be paid. Then, they will cooperate.
If they refuse, there is the end run, which is basically an assignment without their supervision and involvement. It’s not the best, but it still works:
- Assign to Buyer 2,
- hold the equitable interest on behalf of Buyer 2,
- close the deal in the name of Buyer 1
- in trust on behalf of Buyer 2.
- Transfer the legal interest in favour of Buyer 2,
There is no further Land Transfer Tax payable since the first transaction was “in trust”. The standard OREA Assignment Form won’t work unless you were to make numerous changes.
Brian Madigan LL.B., Broker