Can you get cash back on a presale assignment?
An assignment is when the original buyer of a presale sells their contract to you before the building is finished. It is a sale like any other, and the commission can be rebated.
Who pays the commission
The assignor, the original buyer, usually pays it, out of the profit on the assignment. Some list assignments on the MLS with a normal buyer-side commission; others are sold privately with a negotiated fee.
How the rebate works
Exactly as on a resale. Whatever your agent's brokerage receives, our partner shares 50% with you in the Lower Mainland, paid after the assignment completes.
What to check on an assignment
- Developer consent and fees. Many developers charge an assignment fee or restrict assignments. Find out who pays it.
- Deposit math. You usually reimburse the assignor's deposits, and pay their profit, at the time of assignment.
- Completion date. You step into the original contract, including the developer's right to extend.
- Tax. BC's home flipping tax and GST can apply to the assignor; make sure the paperwork handles who is responsible.
Read more in our guide to presale cash back in Vancouver.