Condo Assignment Sales in Ontario: 2026 Buyer's Guide

An Ontario condo assignment sale is the transfer of the original buyer's rights under a pre-construction Agreement of Purchase and Sale (APS) to a new buyer, before the original buyer takes title. The original buyer (assignor) does not close; the new buyer (assignee) steps into the APS and closes with the builder. Assignments require the builder's written consent (usually with a fee), HST applies to the assignment fee under subsection 192.1(1) of the Excise Tax Act as amended effective May 7, 2022, and the assignor typically reports the gain to CRA in the year of sale. Assignment sales can be a good option for buyers whose circumstances have changed since signing, but they need careful legal and tax planning on both sides.

Key takeaways

An assignment transfers the original buyer's contractual rights, not title. Title still transfers directly from the builder to the assignee at final closing.
The builder must consent to the assignment. Most builder-form APSs charge a consent fee, restrict when assignments are permitted, and reserve the right to refuse.
Since May 7, 2022, all assignments of new-housing purchase contracts are HST-taxable at 13% on the assignment fee (with a limited exception for the recovery of the original deposit).
The assignor is typically taxed on the gain from the assignment as business income or capital gain depending on the facts. Confirm with an accountant.
The assignee reimburses the assignor for the deposits already paid to the builder, pays the assignment fee, pays HST on the assignment fee, then closes with the builder on the balance owing at final closing.

What an assignment is (and what it is not)
When assignments are permitted in Ontario
Builder consent and the assignment amendment
Pricing an assignment
Marketing and finding an assignee
HST on assignments after May 7, 2022
Income tax on the assignor's profit
The assignee's cash requirement
Worked example: pricing and cash flow
Common risks and misunderstandings
Assignment checklist
Frequently asked questions

What an assignment is (and what it is not)

An assignment is a contractual transfer. The original buyer's rights under the APS with the builder are assigned to a new buyer for consideration. Once the builder consents, the assignee stands in the assignor's shoes. On final closing:

The builder transfers title directly to the assignee, not to the assignor.
The assignee pays the balance owing under the original APS.
The assignee assumes all remaining obligations under the APS.

An assignment is not a resale. A resale requires the original buyer to close on title first, then to sell to a new buyer in a separate transaction. Selling on assignment is faster and avoids double land transfer tax, double closing costs, and the need to arrange short-term financing to complete the first closing.

When assignments are permitted in Ontario

Ontario pre-construction APSs vary in what they permit. Common variations:

Prohibited before final closing. Some builders bar assignments entirely.
Permitted with consent. Most builders allow assignments once specific milestones are reached (for example, after the project has fully sold out, or after a certain percentage sold) and subject to a consent fee.
Freely permitted. Rare, and usually only in launches where the builder is trying to attract investor demand.

The specific clause is usually titled "Assignment" or "Restrictions on Assignment" or "Transfer of Agreement." A lawyer should confirm what the clause allows during the ten-day cooling-off period. See the Ontario condo cooling-off period guide.

Builder consent and the assignment amendment

To assign, the assignor typically:

Submits a written assignment request to the builder along with the proposed assignee's information and the assignment consideration.
Pays the consent fee (often $2,500 to $10,000 plus HST, depending on the builder).
Signs a builder-drafted assignment amendment that names the assignee, confirms the deposit reimbursement, and preserves the builder's rights.
Delivers the executed assignment amendment to both parties' lawyers.

The builder is not usually required to consent; the APS typically says consent is not to be unreasonably withheld or, in some cases, may be withheld at the builder's discretion. Grounds for refusal historically include the assignee's ability to close, marketing restrictions (some builders forbid public advertising of the assignment or the price), and any outstanding buyer breach.

Note that the builder can and often does impose specific marketing restrictions on how the assignment is presented publicly. Marketing on the open market may only be permitted with additional written consent.

Pricing an assignment

The assignor typically prices the assignment as:

Original purchase price + a "premium" or "profit" component, or
A fixed dollar amount that includes recovery of deposits and a profit component.

In practice, the negotiation between assignor and assignee is over:

The premium above the original purchase price.
Reimbursement of the deposits paid to date.
Responsibility for the builder's consent fee (usually split or paid by the assignor).
Responsibility for HST on the assignment fee (usually paid by the assignee on top of the fee).
Adjustments for occupancy fees paid during any interim occupancy period, if applicable.

The market for assignments moves with the pre-construction resale market and with buyer sentiment on the specific building. Recent-sold assignment prices in the same tower are the best comparable.

[TAL'S PRACTICAL NOTE: Add a two-to-four-sentence observation about how you price a Toronto assignment today, including which comparables you rely on and how strict builder-marketing restrictions affect the timeline.]

Marketing and finding an assignee

Assignments can be marketed through:

Toronto Regional Real Estate Board (TRREB), if the specific builder permits an MLS listing. Many builders forbid this.
Assignment-specific platforms and databases.
The assignor's realtor's private buyer network.
Direct approach to the builder's other purchasers or launch waitlist (with permission).

Confidentiality requirements from the builder must be respected. Public disclosure of the original purchase price is often prohibited, and violation can be a breach of the APS.

HST on assignments after May 7, 2022

Subsection 192.1(1) of the Excise Tax Act, as amended by the 2022 federal budget bill and effective for assignments entered into on or after May 7, 2022, treats every assignment of a taxable new-housing purchase agreement as a taxable supply. Consequences:

The assignor charges 13% HST on the assignment fee (in Ontario).
A limited exception applies for the portion of the consideration that represents the recovery of the original deposit paid to the builder.
The assignor collects the HST and remits it to CRA on their next return.
Non-registered assignors who make a single taxable supply may need to register for GST/HST temporarily to comply.

For the full HST context, see the HST on pre-construction condos guide.

Income tax on the assignor's profit

CRA generally taxes assignment profits as one of the following:

Business income (100% taxable). Common where the assignor bought with an intent to flip, or does this frequently, or is otherwise treated as a trader in real estate.
Capital gain (50% taxable inclusion at time of writing). More likely where the property was bought as an investment and held with the intent to close and hold, and the assignment was a change in plan due to genuine change in circumstances.
Personal-use property. Rare in assignments.

The characterization is fact-specific. CRA has increased audit attention on assignments and issues technical bulletins clarifying its position. Consult a qualified tax advisor before selling on assignment and again when preparing the return.

The assignee's cash requirement

The assignee typically funds:

Reimbursement of deposits paid by the assignor to date (for example, if the assignor paid 15% of the purchase price, the assignee reimburses that 15%).
The assignment fee (the "profit" component to the assignor).
HST on the assignment fee.
The remaining balance owing under the original APS, funded at final closing (usually via mortgage).
Any interim occupancy fees due after assignment closing if the building is in interim occupancy.
All closing costs (land transfer tax, adjustments, legal fees, Tarion, hookups). See the pre-construction closing costs guide.

Assignment closings usually happen within 30 to 90 days of the assignment agreement, but do not close on title with the builder until the builder's final closing date.

Worked example: pricing and cash flow

Assumptions (illustrative only):

Original purchase price: $850,000, signed 2 years ago.
Deposits paid to date: 20% = $170,000.
Purchase price now considered market: $900,000 based on recent assignment comparables in the same tower.
Builder consent fee: $5,000 plus HST, paid by the assignor.

Assignor's economics

Assignment fee to be collected: $50,000 (difference between $900,000 and $850,000).
HST on assignment fee at 13%: $6,500, charged to the assignee.
Builder consent fee: $5,000 + $650 HST = $5,650 out of the assignor's pocket.
Legal fees for the assignor: about $1,500.
Realtor fee for the assignor: negotiated separately, often on the assignment fee.
Deposit reimbursement received from the assignee: $170,000 (returned as cash flow, not profit).
Assignor's pre-tax profit before commissions: about $50,000 − $5,650 − $1,500 = $42,850.
Income tax on the profit: applied per CRA characterization (business income or capital gain).

Assignee's cash outlay

Deposit reimbursement to assignor: $170,000.
Assignment fee to assignor: $50,000.
HST on the assignment fee: $6,500.
Legal fees for the assignee: about $2,000.
Cash at assignment closing: about $228,500.
Balance owing to the builder at final closing (funded by mortgage): $680,000.
Standard closing costs on final closing per the closing costs guide.

Every number above is illustrative and depends on the specific APS and the market for the specific building.

Common risks and misunderstandings

"The builder can't stop me from assigning." The APS controls. Most builders retain the right to consent, refuse, or condition assignments.
"HST doesn't apply if the assignee reimburses my deposit." HST applies to the assignment fee. The exception for deposit recovery does not cover the profit portion.
"The profit is a capital gain." Sometimes. Often not. CRA characterization depends on intent and facts.
"I can list the assignment publicly." Usually only with the builder's written permission, and often not at all.
"The assignee inherits my mortgage approval." No. The assignee arranges their own financing for the balance owing at final closing.
"The assignment closes when title transfers." The assignment agreement closes shortly after signing, but title transfer to the assignee happens at the builder's final closing date, potentially months later.
"I do not need a realtor." Assignments are complex enough that both sides usually benefit from experienced representation. Builder marketing restrictions also make it hard to reach the right buyer pool without one.

Assignment checklist

For the assignor:

[ ] Confirm the APS permits assignment and identify the consent fee.
[ ] Retain a lawyer familiar with Ontario assignments.
[ ] Retain an accountant to confirm HST and income-tax treatment.
[ ] Pull recent assignment comparables in the same building.
[ ] Prepare the marketing package within the builder's confidentiality rules.
[ ] Register for GST/HST if not already registered.
[ ] Diarize HST remittance obligations after the assignment closes.

For the assignee:

[ ] Review the original APS and the assignment amendment with a lawyer.
[ ] Confirm the balance owing and the closing costs at final closing.
[ ] Verify Tarion enrolment and deposit protection status.
[ ] Obtain mortgage pre-approval for the balance owing.
[ ] Confirm HST intent (owner-occupier vs investor) and its implications.
[ ] Reserve cash for the assignment closing plus final closing plus adjustments.

Frequently asked questions

What is a condo assignment sale in Ontario?

The transfer of a pre-construction buyer's rights under an APS to a new buyer before final closing. Title still transfers directly from the builder to the new buyer.

Do I need the builder's consent to assign?

Almost always, yes. The APS controls the requirement.

How much does the builder's assignment consent fee cost?

Typically $2,500 to $10,000 plus HST, depending on the builder.

Is HST charged on an assignment?

Yes. Since May 7, 2022, subsection 192.1(1) of the Excise Tax Act treats every assignment of a taxable new-housing agreement as a taxable supply. The tax applies to the assignment fee, with a limited exception for recovery of the original deposit.

Is the profit a capital gain or business income?

It depends on the facts. CRA characterization looks at intent, frequency, and other factors. Confirm with a tax advisor.

Can I market my assignment publicly?

Only if the builder permits it in writing. Many builders forbid public marketing or price disclosure.

Who pays land transfer tax on an assignment?

The assignee pays LTT on the price they pay for the unit, generally including the price to the builder and the amounts paid to the assignor. Structuring varies and should be confirmed by both parties' lawyers.

Can I assign if I have already taken interim occupancy?

Some builders permit interim-occupancy assignments; many do not. Even where permitted, the mechanics are more complex because the buyer is already living in the unit.

How long does an assignment take to close?

The assignment agreement typically closes within 30 to 90 days of signing. Final title transfer to the assignee happens on the builder's final closing date.

Conclusion

Assignments are a legitimate option for Ontario pre-construction buyers whose circumstances or plans have changed. They are also more complex than a resale, especially since the 2022 HST amendments and CRA's increased attention on assignor tax filings. Anyone considering an assignment on either side of the transaction should engage a lawyer who does assignments regularly and an accountant who understands the tax characterization. Marketing restrictions in the APS should be respected.

Call to action

Considering assigning your Toronto pre-construction contract, or looking to buy on assignment? Browse pre-construction listings on CondoWizard, review developer track records, or contact the team for help navigating the assignment process from either side.

Sources and last reviewed

Government of Canada. Excise Tax Act, section 192.1 (assignments). https://laws-lois.justice.gc.ca/eng/acts/e-15/
Canada Revenue Agency. GST/HST on assignments of new housing. https://www.canada.ca/en/revenue-agency.html
Canada Revenue Agency. Income tax on real estate assignment profits. https://www.canada.ca/en/revenue-agency.html
Government of Ontario. Condominium Act, 1998. https://www.ontario.ca/laws/statute/98c19
Tarion. Assignment implications on deposit protection. https://www.tarion.com

Last reviewed: 2026-07-25. Assignment rules, HST treatment, and CRA characterization guidance change. Buyers should verify current information with a qualified lawyer and accountant before signing an assignment on either side.

Condo Assignment Sales in Ontario: Buyer's Guide