When I buy a condo assignment, do I pay the same deposits the original buyer paid?

The deposit structure in an assignment transaction is more complex than a standard new-construction purchase. The original buyer (assignor) has already paid deposits to the builder. When the assignment is completed, those deposits remain with the builder — they do not change hands between the assignor and assignee as a direct transfer to the builder.

Instead, the assignment purchase price typically has two components: (1) reimbursement to the assignor for the deposits they have already paid (since those deposits ultimately form part of the purchase price and the assignor is giving up their right to them), and (2) an "assignment fee" or profit component reflecting any appreciation in the unit's value.

As the assignee, you pay the assignor the agreed assignment price. Going forward, you are responsible for any future deposits that remain due to the builder under the original purchase agreement before final closing. The total of all deposits (paid by the assignor and any remaining instalments) plus the assignment fee is your true total investment in the transaction.

The structure should be clearly laid out in the assignment agreement. Have your lawyer prepare a funds-flow analysis so you understand exactly when money moves, to whom, and in what amounts between signing the assignment and final closing. Surprises in this area are costly.