In every real estate cycle, there is quiet chatter about assignment deals. Some buyers see them as a shortcut to skip years of waiting on a presale, while others view them as a warning sign. In 2025, with higher interest rates and shifting prices, assignment listings have become increasingly common across Brentwood, Coquitlam, and Surrey.
But what exactly is an assignment sale, and when can it be an opportunity versus a financial mistake?
Understanding What an Assignment Sale Is
An assignment sale happens when a buyer who originally purchased a presale condo decides to transfer their contract to someone else before completion. The new buyer, known as the assignee, takes over the rights and responsibilities from the original buyer, who is called the assignor.
You are not buying the completed property itself but rather the contract for that property. When construction is finished, the assignee steps in as the official buyer on completion day and registers the home under their name.
Why Assignment Sales Are Increasing in 2025
A few years ago, assignments were rare. Developers were selling out quickly, and few buyers wanted to give up their contracts. Today, the landscape has changed. Higher mortgage rates have made it harder for some buyers to qualify for financing, while others simply want to cash out before completion. Investors who bought multiple units during the presale boom are also re-evaluating their portfolios and choosing to assign certain contracts to reduce exposure.
As a result, there are more assignment opportunities than we have seen in years, but they come with both potential rewards and risks.
When an Assignment Can Be a Smart Move
Buying an assignment can make sense when you want a newer home without waiting years for construction to finish. Many assignments are only a few months away from completion, allowing buyers to move in sooner or start earning rental income more quickly.
Another advantage is price. If the original purchaser bought at an earlier phase when the developer’s prices were lower, you may step into that contract at a below-market value. This was especially common in projects launched in 2021 and 2022, when presales were priced aggressively before the rate hikes.
Assignments can also be the only way to access sold-out projects. For sought-after developments in Burnaby’s Brentwood or Vancouver’s River District, assignments are often the only path to secure a home in a completed tower.
In some cases, the price of the assignment already includes GST, which can save buyers thousands at closing. Always confirm this with your realtor or lawyer before committing.
When an Assignment Can Turn Into a Risk
Assignments can also be problematic if the numbers no longer make sense. In recent years, developers have priced projects based on future market gains. If the market softens before completion, buyers who step into those contracts may end up paying above current market value.
Financing can also be difficult. Many lenders are cautious with assignments and may not provide firm approval until the building is close to completion. This uncertainty can create stress if your approval or rate changes near the finish line.
Most developers also require written consent before a contract can be assigned, and they charge an assignment fee that typically ranges from one to three percent of the purchase price. On a $900,000 condo, that fee could be as high as $27,000, paid by either the seller or buyer depending on the negotiation.
Another risk is inheriting the original buyer’s contract terms. You cannot renegotiate with the developer, so you must accept whatever deposit schedule, upgrade decisions, or completion timelines were originally agreed upon.
The biggest risk appears when prices fall. Imagine an original buyer purchased a presale in 2021 for $900,000, but by 2025 similar homes are selling for $850,000. The buyer may try to assign the contract, but anyone taking over that agreement is paying more than current market value. If the new buyer completes at that price, they start with negative equity.
Tips for Navigating the Assignment Market
Before buying an assignment, verify that the price aligns with comparable new and resale homes nearby. Ask your realtor or lawyer to review the original purchase agreement carefully and explain the developer’s assignment policy. Make sure you understand the GST treatment, assignment fees, and deposit structure.
If you need financing, start discussions early. Provide your lender with a copy of the full contract and confirm that they are comfortable funding assignment purchases. Lastly, confirm that the developer has approved the transfer before you commit to any payment.
The Bottom Line
The assignment market in Vancouver can be an incredible opportunity or an expensive mistake. In the right circumstances, it lets you move into a new home faster, sometimes at a better price, and in projects that are already sold out. In the wrong situation, it can leave you paying more than the home is worth or scrambling for financing at completion.
In today’s shifting market, success comes down to due diligence. Compare every assignment to similar resale and presale options, and always get professional advice before signing.