Who pays legal fees on a condo assignment sale in Ontario?

In a condo assignment transaction, both the assignor and the assignee typically have their own legal fees to pay, and it is generally expected that each party bears their own. The assignment itself involves drafting and reviewing the assignment agreement, obtaining builder consent, and managing the financial arrangements — all of which require legal work on both sides.

The assignee also needs a lawyer for due diligence on the original purchase agreement, the disclosure statement, and all addenda. At final closing, the assignee will need a lawyer for the title transfer, land transfer tax, and mortgage registration — the same steps as any other condo closing.

The builder's consent fee is a separate charge paid to the builder (not to lawyers) and typically ranges from a few hundred to several thousand dollars depending on the builder and project. Some assignment agreements pass this fee to the assignee; others require the assignor to pay it. This should be clearly set out in the assignment agreement itself.

Budget for legal fees on both sides as a transaction cost. Because assignment transactions involve more document review and more parties than a standard purchase, legal fees may be somewhat higher than for a comparable direct purchase. Get a fee estimate from your lawyer at the outset, but understand that complexity in the documents may affect the final amount.