Buying a presale assignment is one of the most misunderstood strategies in the pre-construction real estate world. For the right buyer, it can be a flexible entry point into vibrant real estate markets like Vancouver or Burnaby. For a seller, it can be a strategic exit before a building completes. Here is everything you need to know.
What Is a Presale Assignment?
When a buyer purchases a presale condo or townhome, they sign a purchase and sale agreement with the developer. They do not yet own the property, but instead they own the right to what is coming in the future; They own the contract to purchase it at the price determined at the time of contract, when the building is completely built.
An assignment occurs when that original buyer — the assignor — sells their contractual rights to a new buyer. That new buyer is the assignee. The assignee steps into the original contract and completes the purchase at the agreed price due to the developer upon building completion. Instead of selling a move-in ready condo or a townhome, one party assigns the contract to another party, hence the term assignment.
Developers must typically consent to the assignment. Most presale contracts include an assignment clause, but terms vary widely. A presale specialist Realtor® can help you review those conditions before you commit to a presale purchase. They can also help review and facilitate any future assignments with their depth of experience in handling presale contract assignments.
How the Finances Work When Assigning a Presale Unit
A Practical Example Of Who Owes What
Suppose a buyer purchased a presale condo at launch for $750,000. They paid $75,000 in deposits — 10% to 20% is common for Vancouver and Lower Mainland presales. The building construction is well underway.
Scenario 1: In A Sellers’ Market: The Real Estate Market Is Up!
If the market has risen about 17% in 2 years, and the unit is now worth $875,000, and a new buyer agrees to purchase the contract at that price. The assignee owes $875,000 total — but the developer is still owed only the original $675,000 ($750,000 – $75,000 deposit). The $125,000 difference is called the lift, the investment profit paid from the assignee to the assignor.
What the Assignee (final buyer) Actually Pays
The assignee’s balance of $875,000 broken down:
- Reimbursing the assignor for all deposits already paid to the developer ($75,000 in this example)
- Also pays the assigner for the lift ($125,000 in this example)
- Assignee has paid a total of $200,000 to take over the contract
- The completion payment is due to the developer ($675,000 due at closing, often financed with a mortgage)
Scenario 2: In A Buyers’ Market: The Real Estate Market Is Down!
If the market has dropped 13%~14% in 2 years, and the unit is now worth $650,000, the assignor manages to sell the assignment at that value. The assignee owes $650,000 total — and, you guessed it – the developer is still owed $675,000 based on the original purchase price of $750,000 of which $75,000 was already paid. The $100,000 loss is the burden born by the assignor.
What the Assignee (final buyer) Pays, and What the Assigner Owes
The assignee’s balance of $650,000 and the assignor’s obligations
- The assignor would owe the assignee $25,000 to cover the $100,000 price drop, excluding the $75,000 deposit paid to the developer)
- The $75,000 deposit paid to the developer remains as-is – part of the original $750,000 purchase contract.
- The assignor is now off the hook to come up with $675,000 upon completion.
The assignee does not start a new contract. They take over the existing one — including all original terms and conditions.
You can see how presale assignments are like a leveraged trade – 17% up can result in a 100%+ gain, while a -15% drop can result in losses exceeding the deposit amount.
Note that additional fees including, but not limited to, legal/notary fees, contract transfer fees as defined by the developer, taxes and other administrative costs are not included in this sample calculation.
Tax Implications to Consider
The Canada Revenue Agency considers assignment income taxable. GST/HST often applies to assignment sales as well. Always consult a tax professional and a real estate lawyer before entering an assignment transaction.
Is It a Good Time To Buy An Assignment in Vancouver or Burnaby?
A combination of market cycle conditions in Metro Vancouver has created favourable conditions for assignment buyers as well as presale purchasers:
- Elevated assignment inventory: A large volume of presales purchased at peak pricing has produced an unusually wide pool of assignment listings. Buyers have more options and more negotiating leverage than in a typical market/
- Motivated assignors: Some original purchasers face changed circumstances — financing challenges, life changes, or shifting investment priorities. These sellers are often willing to price competitively for a fast exit.
- Below-peak entry points: In most market segments and geographic regions, assignments are available at or below the original presale price. For years, presale purchasers enjoyed a lift in Vancouver – not in 2025 or 2026 (yet).
- Shorter wait times: Unlike buying a new presale launch, assignment buyers are acquiring a contract on a building that is already near completion. The wait for possession is significantly shorter.
- Long-term upside: Vancouver’s constrained land supply and persistent housing demand, as well as dramatically reduced new housing starts can lead to a supply shortage, while the West Coast still remains the most desirable place to live and play, creating potential for increasing demand for housing again.
Presale and Assignment Expert Real Estate Agents on Your Side
Our presale specialist Realtors® work with assignment contracts routinely, and we have a network of lawyers and notaries to help with all layers of legal, financial, and contractual details of presale assignments. We help you understand what you are acquiring and what the true cost is. We make sure the deal actually makes sense for your investment goals.
Reach out to the Nest Presales team now to explore assignment opportunities across Vancouver and throughout British Columbia.
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