- Before a condominium is registered, the assignor doesn’t hold registered title to a legal unit — they hold contractual rights under their agreement of purchase and sale (APS) with the…
- At the assignment closing, the assignee typically pays the assignor for the increase in value since the original agreement was signed, reimburses the assignor for deposits already paid…
- At the builder’s final closing, the assignee — now the purchaser under the agreement — pays the balance owed to the builder, deals with any adjustments set out in the agreement, arranges…
A condo assignment sale in Ontario doesn’t close once — it closes twice, on the same day or very close together. Understanding why, and how the two closings connect, helps both assignors and assignees avoid the most common last-minute problems in these deals.
A double closing in this context refers to the assignment closing, where the original purchaser (the assignor) transfers their contractual rights to the new buyer (the assignee), and the builder’s final closing, where the assignee completes the purchase directly with the builder and takes registered title. These two closings are legally distinct but practically inseparable — one generally can’t happen without the other.
This article breaks down what happens at each stage, and why coordination between the parties’ lawyers matters so much.
Two Closings, One Transaction
Before a condominium is registered, the assignor doesn’t hold registered title to a legal unit — they hold contractual rights under their agreement of purchase and sale (APS) with the builder. An assignment sells those contractual rights to the assignee. But the assignee still has to complete the underlying purchase directly with the builder to actually receive title. That’s why an assignment deal typically involves two steps:
- The assignment closing — between the assignor and the assignee, where the assignor’s rights and obligations under the original APS transfer to the assignee
- The builder’s final closing — between the assignee, now stepping into the assignor’s shoes, and the builder, where the assignee completes the purchase and the unit registers
The Assignment Closing: What Happens
At the assignment closing, the assignee typically pays the assignor for the increase in value since the original agreement was signed, reimburses the assignor for deposits already paid to the builder, and the parties formally transfer the assignor’s contractual position, usually with the builder’s prior written consent already in hand. The assignor is generally released from further obligations to the builder once this step, and the builder’s consent conditions, are satisfied.
The Builder’s Final Closing: What Happens
At the builder’s final closing, the assignee — now the purchaser under the agreement — pays the balance owed to the builder, deals with any adjustments set out in the agreement, arranges financing and mortgage registration, and takes registered title to the unit. This is functionally similar to any new-construction closing, except the buyer completing it is the assignee, not the person who originally signed the agreement.
How the Two Closings Are Coordinated
| Assignment closing | Builder’s final closing | |
|---|---|---|
| Parties | Assignor and assignee | Assignee and builder |
| What transfers | Contractual rights under the APS | Registered title to the unit |
| Who’s paid | Assignor, for their equity and deposits | Builder, for the balance owing |
| Typical timing | Same day as, or shortly before, final closing | Set by the builder, often on notice |
Lawyers for the assignor, assignee, and often the builder coordinate timing so the assignment is fully completed before or simultaneously with the final closing — the assignee needs to be the recognized purchaser of record before the builder’s closing can proceed in their name.
Common Timing Issues
- The builder’s final closing date can move, which is common in pre-construction projects and can compress the window to complete the assignment closing
- Mortgage financing for the assignee needs to be arranged around both the assignment terms and the builder’s final closing date, not just one or the other
- Adjustments and statements from the builder may not be finalized until close to the final closing date, leaving a short window to confirm final numbers
- Because both closings are interdependent, a delay or problem in one can cascade into the other
Frequently asked questions
Do I need two separate lawyers for a double closing on a condo assignment?
The assignor and assignee each need their own lawyer, as in any real estate transaction with adverse interests, and the builder typically has its own counsel too. Coordinating between these lawyers is part of what makes the double closing work smoothly.
Can the assignment closing happen weeks before the builder’s final closing?
It depends on the builder’s consent terms and the agreement, but assignment closings are commonly scheduled close to the final closing, since the assignee needs to be recognized as the purchaser before completing with the builder. Ask your lawyer about the sequence in your deal.
What happens to the assignor’s original deposits in a double closing?
Typically, the assignee reimburses the assignor for deposits already paid to the builder as part of the assignment closing, and those funds — already held by the builder — apply toward the final closing. The exact mechanics depend on the assignment agreement.
Is a double closing on an assignment riskier than a normal resale closing?
It involves more moving parts and more parties to coordinate, which is why experienced legal coordination matters. It isn’t inherently riskier when properly managed, but the interdependence between the two closings means timing problems can have a bigger ripple effect than in a single, standard resale closing.
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