How should buyers evaluate an assignment condo in Markham Centre?An assignment lets you take over another buyer’s pre-construction contract before closing. You usually repay their deposit, pay any profit, and then pay the builder’s balance on closing. Since May 7, 2022, HST generally applies to the assignment price minus the deposit repayment, so the deposit must be stated in writing. Confirm builder consent and fees, land transfer tax, occupancy terms and whether your lender’s appraisal supports the total.
Some condos bought before price changes are reaching occupancy now, and some original buyers want out. That can create opportunities, and traps.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, walks assignment buyers through the full cost before they commit.
How the money works
| Payment | To whom | When |
|---|---|---|
| Deposit repayment | Original buyer | On the assignment |
| Assignment profit, if any | Original buyer | On the assignment or closing |
| Builder’s balance | Builder | On final closing |
| Builder assignment fee | Builder (often paid by seller) | On consent |
HST and rebates
Since May 7, 2022, assignments of new homes are generally subject to HST on the assignment price minus the deposit repayment, if that repayment is stated in writing. Missing that wording can raise the tax sharply. The new-home HST rebate generally goes to whoever closes and qualifies, so confirm eligibility.
Other costs and risks
- Land transfer tax on closing, possibly on the combined value
- Interim occupancy fees before registration
- Closing adjustments in the builder agreement
- An appraisal that may come in below the total price
Looking at an assignment?
Michael John Lau can compare the full cost with resale options nearby.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Documents to review
- The original agreement and all amendments
- The builder’s consent terms and fees
- The Tarion Statement of Critical Dates
- The assignment agreement, with the deposit repayment stated
Opportunity or trap?
A good assignment price can be below comparable resale or new launches, but only if the full cost is clear. Ultimately, the decision is yours. The goal is to make sure you have all the information before you sign.
In an assignment, the details decide the deal. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
What is a condo assignment?
Taking over another buyer's pre-construction contract before closing.
Do I pay HST on an assignment?
Generally yes, on the assignment price minus the written deposit repayment.
Who pays the builder's assignment fee?
It is negotiable; often the original buyer pays it.
Do I pay land transfer tax on an assignment?
Yes, on closing, and the value may include the assignment price.
What if the appraisal is low?
You may need more cash to close. Check financing early.
Can every condo be assigned?
No. Some builder agreements prohibit or limit assignments.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. HST, rebate, land transfer tax and occupancy points are from Nihang Law (October 2026), citing Excise Tax Act s. 192.1. This is general information, not legal or tax advice. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
