Is title insurance affected if I assign my purchase agreement before closing?

An assignment of a purchase agreement is when the original buyer (the assignor) transfers their rights under the agreement to a new buyer (the assignee) before closing actually takes place. Assignments are most common in pre-construction condominium deals. The assignee steps into the shoes of the assignor and closes the purchase directly with the builder or vendor.

From a title insurance perspective, the assignee — the person who actually takes title at closing — is the one who should obtain an owner's title insurance policy. They are the one taking ownership of the property, and title insurance protects the registered owner. The fact that an assignment took place is generally not itself a title concern, but your lawyer will review the assignment agreement and the underlying purchase agreement to ensure the assignment was properly structured and that the assignee has enforceable rights against the builder.

One nuance: title insurers may ask about assignments as part of the policy application because certain assignment arrangements (particularly ones involving multiple flips of the same agreement) can raise concerns about misrepresentation in the underlying transaction. Be straightforward with your lawyer and the insurer about the transaction's history. If the assignment was above-board, there should be no issue obtaining coverage.