Assignment of Condo Purchase Fee Quote
LEGAL FEES FOR ACTING ON BEHALF OF ASSIGNEE ON AN ASSIGNMENT OF INTEREREST IN CONDOMINIUM UNIT
We wish to make the following clarification as clients are sometimes confused and believe that the closing of an Assignment deal is the same as closing with the builder. It is not the same and they may close at the same time or they may close on different dates. For e.g. if the Assignor wants out of the deal, wants his profit and closes with you after securing the builder's consent, the assignment is considered closed. If the Assignor agrees to wait to get his/her profit on the date that the builder transfers the property to you on final closing, the two closings may be taking place same time.
We wish to submit the following for your consideration before providing you with our fee quote for services to be rendered in connection with a condominium unit assignment.
1. We do not recommend that the assignee takes over the builder agreement (the “Developer Agreement”) unless the builder consents thereto. One must review the assignment clause in the Developer Agreement to determine if the original buyer, has the right to assign or the builder prohibits any form of assignment. If the Developer Agreement authorizes the buyer to assign her/his interest in the agreement of purchase and sale to a third-party, it will normally be subject to certain terms and conditions which would include payment of an assignment fee and payment of the legal charges to prepare the assignment. Further, if occupancy has taken place, the builder may not consent to assignment.
2. The assignee must consider H.S.T consequences as the assignee may not qualify for the H.S.T rebate and must come up with additional funds on final closing with the builder.
3. It is important that the assignee conducts his/her financial investigation with respect to the value of the property at the present time and anticipate what the potential value may be at the time of closing in terms of the closing date set out in the statement of critical dates in the Developer Agreement. We cannot comment on whether the property value has increased from the time the original agreement has been entered into or whether by the time the assignee will complete the deal, the value will be equal or higher. It is also imperative that the assignee confirms that the assignee has been approved for financing to take over the property.
4. We do not recommend purchasing the assignor’s interest in the Developer Agreement without reviewing same to ensure that the assignee appreciates the terms and conditions that will become binding on the assignee following assignment. A Developer Agreement often contains pre-printed small clauses with onerous terms such as imposing uncapped levies, development charges, utility meter connection and set up charges or going as far as requiring that the buyer pays the Developer’s partial discharge of existing mortgages, cost of survey, etc. Further it grants the Developer, at its discretion, the unilateral right to change/amend floor plans, reduce square footage, change elevations and deprives that buyer the ability to contest or challenge changes made by the Developer. We recommend that you check if the builder is registered and check the builder’s profile: https://obd.hcraontario.ca/. We also recommend that you perform a google search and inquire as to the builder’s rating as in our experience ratings can be helpful in identifying an unethical builder or
one with poor workmanship – matters which we may not be able to identify by reviewing the Developer Agreement but which impacts greatly on the buyer of the property.
5. Our fee to act on your behalf in respect to the assignment agreement is $1,295.00 plus H.S.T and includes review of the Developer Agreement, review of the assignment agreement, coordinating with the assignor’s solicitor and the builder’s solicitor to finalize the assignment, and completion of the Assignment. Please note that the fee herein does not include fees for services to be rendered on final closing with the builder.
If YOU DO NOT REQUIRE US TO REVIEW THE BUILDER AGREEMENT (WHICH WE DO NOT RECOMMEND but only want us to review the form of assignment then our fee to review ONLY the Assignment Agreement is $495.00 plus H.S.T.
If you wish to REVIEW THE BUILDER AGREEMENT AND HELP YOU CLOSE THE ASSIGNMENT please forward our office a retainer fee of $500.00 to email@example.com.
TRANSACTION SURCHARGE FEE
The above fees apply for purchase and sale of residential resale properties valued less than one million Canadian dollars. Where the purchase/sale price is over the one million dollars threshold, a fee surcharge of $99.00 shall apply for each extra $100,000.00.