Builder Consent Fees on Condo Assignments in Ontario: What to Expect

Almost every Ontario builder agreement that permits condo assignments also requires the builder’s written consent before the deal can proceed — and that consent typically doesn’t come for free. Builders commonly charge a fee to review and approve an assignment request, on top of whatever else the assignment involves.

This article explains what a builder assignment consent fee generally covers, why it exists, and what to check in your own agreement — without guessing at a number, since the amount is set entirely by each builder’s own agreement and can vary significantly.

Why Builders Charge a Consent Fee

Reviewing and approving an assignment takes the builder’s administrative and legal resources — confirming the proposed assignee, updating internal records, preparing a consent document, and coordinating with the builder’s own lawyers. A consent fee is how many builders recover that cost, and it’s a standard, expected part of most Ontario pre-construction assignment deals.

What the Fee Typically Covers

Depending on the builder, a consent fee may be described as covering some combination of:

• Administrative processing of the assignment request
• The builder’s legal fees for preparing consent documentation
• Credit or financial review of the proposed assignee
• Updating the builder’s records to reflect the new purchaser

Because the fee amount, and exactly what it’s meant to cover, is set entirely by each builder’s agreement, there’s no single standard figure across the industry. Some agreements state a fixed fee; others describe a fee "plus applicable taxes" or "plus the builder’s legal costs," which can make the final amount harder to predict upfront. Always confirm the current figure against your specific agreement rather than assuming it matches another project.

Where to Find This Term in Your Agreement

The consent fee is usually set out in the assignment clause of the original APS, sometimes in a separate assignment addendum or schedule. It’s worth locating and reading this section closely — not just noting that a fee applies, but confirming:

• Whether the fee is a fixed amount or open-ended, such as "the builder’s legal fees," without a stated cap
• Whether it’s payable regardless of whether consent is ultimately granted
• Whether HST or other taxes apply on top of the stated fee
• Whether there are additional charges beyond the core consent fee, for example for expedited review

What Else Builder Consent Can Involve

• [ ] A formal written request identifying the proposed assignee
• [ ] Financial or credit information about the assignee, at the builder’s discretion
• [ ] A deadline by which the builder must respond, or confirmation there isn’t one
• [ ] Marketing restrictions that apply until consent is granted
• [ ] A requirement that the assignor remain responsible to the builder unless and until consent is finalized

Who Pays the Fee — Assignor or Assignee?

This is a negotiable point between the assignor and assignee, separate from the builder’s requirement that the fee be paid at all. Many assignment deals address who bears the consent fee explicitly in the agreement between assignor and assignee — don’t assume it defaults to either party without checking.

In practice, this term is often decided as part of the broader negotiation between assignor and assignee, alongside price and other adjustments, rather than being fixed by any external rule. Having your lawyer confirm this point in writing, before the assignment agreement is finalized, avoids a dispute over who owes the builder’s invoice once consent is granted.

Frequently asked questions