What are my options if my condo assignment price is now higher than market value at closing?

If property values have declined since you signed either the original purchase agreement or the assignment agreement, and the purchase price is now above current market value, you are said to be "underwater." This situation creates real financial and legal pressure at closing.

Your legal options are limited. The purchase agreement is binding, and simply refusing to close is a breach of contract. The builder can sue for the difference between your agreed price and the price they ultimately receive from a resale, plus additional damages. In practice, the builder typically re-lists the unit and then seeks to recover the shortfall from you — a process that can result in a court judgment.

If you are unable to close because your mortgage lender is now unwilling to advance funds (because the property appraised below the purchase price), that is a financing problem rather than a legal right to exit. Speak with your lender about options: a larger down payment, a second lender to make up the gap, or other solutions.

Some buyers in this situation negotiate with the builder for a price reduction or a modified closing — builders have commercial incentives to close and may be willing to negotiate rather than pursue litigation. There is no guarantee of success, but it is worth attempting with a lawyer's assistance.

Do not simply walk away without legal advice. The consequences of an uncounselled default can follow you for years.