Assignment sales in Calgary

Understand what changes hands

The original buyer is the assignor; the incoming buyer is the assignee. Buying the contractual interest is different from buying a completed home from its registered owner.

Alberta recognizes contract assignments. Builder terms, consent requirements, timing and fees still require review of the actual agreement. An assignment does not by itself establish that the original buyer is released from every obligation. Ask counsel to confirm continuing liability and any release.

Read the related wholesale real estate guide if a proposal is being advertised under that label.

Selling your pre-construction or resale contract

Start with the signed purchase agreement, amendments, deposit record, expected completion window and the outcome you need. Identify any upgrade schedules, incentives, notices or deadlines that could affect a transfer.

• Ask counsel to establish the assignment process and any required builder or seller consent.
• Confirm permitted advertising, photograph rights, access and document-sharing limits before exposing the opportunity.
• Compare proposed proceeds with your remaining purchase obligations, fees and tax exposure.
• Agree how deposits, assignment payments and completion funds will be handled, including a failed completion.

Before any assignment marketing or representation, confirm the scope with KO Realty, legal counsel and the relevant insurer. Contacting Mohammad starts a discussion; it does not establish that a particular contract can be marketed or assigned.

Buying an assignment: check the cash and the contract

Ask your lawyer to review the original agreement and proposed assignment together. Your lender should assess the actual transaction; a general pre-approval is not confirmation that an assignment payment or deposit reimbursement can be financed.

• Original purchase obligations: purchase price, unpaid deposits, closing adjustments and the remaining amount due to the builder or seller.
• Assignment terms: what is paid to the assignor, when it is due, any reimbursement of the original deposit and whether tax is included.
• Property and timing: plans, specifications, completion notices, permitted changes, inspection rights and the effect of delays.
• Funding and downside: cash available before closing, lender requirements, appraisal risk and your plan if completion takes longer.

Reconcile each payment with the closing statement so the original deposit is not counted twice. Assess a future rental using the property deal analyzer after the transaction costs are understood.

GST on new-home assignment sales

CRA states that assignments of newly constructed or substantially renovated residential housing made on or after 7 May 2022 are taxable for GST/HST. A deposit reimbursement identified in writing in the assignment agreement is excluded from the assignment consideration under the stated rules.

Have your accountant confirm who collects and remits the tax, whether quoted amounts include GST, any rebate implications and the income-tax treatment of your proceeds. Assignment tax and the tax on the underlying home purchase need separate review.

How assignment marketing differs from MLS listings

AREA's assignment guidance explains that assignments do not qualify for MLS® system marketing. Discuss a permitted marketing plan with the brokerage and legal counsel. Do not advertise the contract as an ordinary MLS® property listing.

Public property listings in the investor listing search are a separate search. This guide does not claim an active assignment is available or that a builder has approved a transfer.

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