Assigning a Contract of Purchase and Sale in BC: Is It Allowed?

An assignment means a buyer passes their rights under a contract of purchase and sale to someone else before the sale completes. Buyers sometimes consider this when their plans change or when they have committed to a new or presale home and want to step out.

Assignments can raise contract, tax and disclosure questions at once. This article covers the points you can check and explains why a lawyer should review the details before you sign or advertise anything.

This article covers the law of British Columbia.

Is an assignment allowed?

Whether you may assign depends first on what your contract says, since many contracts address assignment directly, and on the rules in force when you act. Restrictions and disclosure requirements can change, so do not rely on general information or on what a friend did in the past.

Before you take any step, have a lawyer read your contract and confirm what is currently permitted. If you are buying a presale from a developer, the developer's contract may have its own terms.

Put it in writing

A contract respecting land is generally not enforceable unless there is a signed writing showing the contract was made and giving a reasonable indication of its subject matter. An assignment should be documented carefully for the same reason.

Registered documents are normally prepared and filed by a lawyer or notary. A notary who is enrolled and in good standing may draw property instruments meant to be registered. An individual acting without counsel solely on their own behalf is allowed, but it is rarely a good idea for something this complicated.

Tax points to ask about

Property transfer tax is paid by the transferee, the person receiving title, who files a return when applying to register. The general rates are 1% on the portion up to $200,000, 2% on the portion above $200,000 up to $2,000,000, and 3% on the portion above $2,000,000. A further 2% applies to the residential value above $3,000,000.

Exemptions depend on the buyer. The first-time home buyers' program requires, among other things, that the buyer be a Canadian citizen or permanent resident, never have owned a principal residence anywhere in the world, and use the home as their principal residence. The newly built home exemption also requires a citizen or permanent resident who uses the home as their principal residence. To keep it, the buyer must move in within 92 days of registration and occupy the home as their principal residence for the rest of the first year.

Whether the final buyer qualifies, and how any assignment fits those rules, should be confirmed with a lawyer or accountant.

GST/HST, foreign buyers and deposits

• The federal first-time home buyers' GST/HST rebate of up to $50,000 applies to agreements to purchase from a builder entered on or after March 20, 2025, or to owner-built homes started on or after March 20, 2025.
• Resale homes are not covered by that rebate.
• Foreign nationals, foreign corporations and taxable trustees pay an extra 20% of fair market value on their proportionate share of residential property in the listed regional districts.
• The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts non-Canadians from buying residential property in urban centres, with a $10,000 fine for contraventions.
• For presales, developers must hold buyers' deposits in trust under the Real Estate Development Marketing Act.

Ask whether any of these affect the person you want to assign to, and how your own tax position may be affected. An accountant can help with that.

What to do next

• Find the assignment wording in your contract, and in any developer documents.
• Ask a lawyer what restrictions and disclosure steps currently apply.
• Check whether the person taking over can meet any exemption or residency conditions.
• Speak to an accountant about the tax effect on you.
• Document everything in signed writing.

Frequently asked questions