An assignment sale lets you sell your rights under a pre-construction agreement before the building is even registered — the builder must consent, and the tax treatment is easy to get wrong. Being on a property's title, separately, determines what happens to your share when you die, separate, or want someone added or removed. Both carry real legal and tax consequences worth understanding before you sign anything.
This page covers two related but different questions.
Selling your position in a pre-construction agreement before the building registers, in plain language.
An assignment sale is when the original purchaser of a pre-construction unit (the assignor) transfers their rights under the purchase agreement to a new buyer (the assignee) before the building has registered. There's no title to transfer yet — the assignee is buying a contractual position, not the unit itself, and eventually takes title from the builder once the building is ready. People assign for many reasons: a change in circumstances, no longer needing the unit, or simply an opportunity to exit before final closing costs come due.
Most original purchase agreements with the builder address assignment directly, and very few permit it freely. Some prohibit it outright; others require the builder's written consent, often along with a consent fee paid by the assignor. Whether the builder can withhold consent, and on what terms, depends entirely on the wording of that clause — reading it before you advertise a unit for sale, or before you buy an assignment, is the first step for either side.
HST treatment on the profit earned from an assignment (the "lift" over the original price) is a genuinely complex area, and getting it wrong is one of the costliest mistakes an assignor can make. Whether it applies turns on your original intent when you signed the pre-construction contract and how CRA characterizes the transaction — the answer is fact-specific and not something to assume either way. Our HST on condo assignment sales article walks through the two common scenarios in detail; confirm your own situation with a lawyer or tax accountant before you set a price.
Separately, the deposit an assignor originally paid the builder is subject to Ontario's deposit protection regime: builders must hold pre-construction deposits in trust, and Tarion provides deposit insurance up to a statutory limit (verify the current figure, as it depends on the date of the agreement). Amounts above that limit need to be secured another way — a letter of credit or insurance bond specified in the agreement. See our Tarion & HCRA deposit protection article for how a claim works if a builder runs into trouble.
An assignment involves two agreements — the assignment agreement between assignor and assignee, and the builder's consent, often a three-party document. Neither follows a standard form the way a resale Agreement of Purchase and Sale does, which is exactly why a real estate lawyer reviewing the assignment agreement before you sign matters: who bears the risk if the builder delays closing, who pays for upgrades already selected, and how the deposit and any profit are structured all need to be addressed in writing, not assumed.
What it means to be on a property's title, and the two ways co-owners can hold it.
"Title" is the legal record of who owns a property, held at Ontario's land registry. When more than one person owns together, they choose — or default into — one of two forms. In a joint tenancy, all owners hold the property as a single unit, and the defining feature is the right of survivorship: when one owner dies, their interest passes automatically to the surviving owner, outside their estate and without probate, regardless of what their will says. In a tenancy in common, each owner holds a separate, defined share — equal or unequal — that does not pass automatically; instead it forms part of their estate and is distributed under their will, or Ontario's intestacy rules if they have none.
Joint tenancy is the common choice for spouses and long-term partners buying together, because survivorship generally matches what they intend. Tenancy in common tends to suit business partners, unequal contributors, or blended families who each want their own share to go to their own beneficiaries. A joint tenancy can also be converted — "severed" — into a tenancy in common, unilaterally or by agreement, which is a legal step with real consequences and worth discussing with a lawyer rather than assuming.
People add or remove names from title for many reasons — marriage, separation, or estate planning are the most common. What surprises people is that Ontario treats adding a co-owner as a partial transfer of interest, not an administrative update, and land transfer tax can apply to the value of what's conveyed, including a share of any mortgage the new co-owner is deemed to assume — even where no cash changes hands. A spousal transfer exemption can reduce or eliminate the tax in qualifying cases, but it must be claimed correctly in the transfer documents; there is no equivalent exemption for a transfer to a child. Toronto properties add the municipal Land Transfer Tax on top of the provincial tax, calculated on the same consideration.
This page explains the concepts. If you're ready to add, remove, or transfer a name on an Ontario property title, our title transfer page is where you start the service — flat fee, HST included.
This page is the overview. These go section by section, with the exact clauses and traps to check.
Assigning or buying a pre-construction unit? Also see assigning before closing and Tarion & HCRA deposit protection. Ready to change a title? Start at title transfer. For any other real estate matter, see real estate law or the full pricing page.
Only if the original purchase agreement permits it and the builder consents. Read the original agreement carefully — and if you are the original purchaser considering an assignment, do this before you advertise the unit for sale.
In a resale, the seller has title to the property and transfers it to the buyer. In an assignment, there is no title to transfer yet — only contractual rights under the purchase agreement. The buyer eventually gets title when the building registers, not at the time of the assignment.
It depends on your original intent when you signed the pre-construction contract and how CRA characterizes the transaction — this is a fact-specific, frequently mis-stated area with real dollar consequences. Get a lawyer or tax accountant to confirm your specific situation before you set a price.
Ontario builders must hold condo deposits in trust, and Tarion provides deposit insurance coverage up to a statutory limit — verify the current limit, as it depends on the date of your agreement. Amounts above that limit need another form of protection specified in your agreement, such as a letter of credit.
In a joint tenancy, when one owner dies, their share passes automatically to the surviving owner by right of survivorship, outside their estate and their will. In a tenancy in common, each owner holds a defined share that passes through their own estate on death, according to their will or Ontario's intestacy rules.
Often yes — Ontario treats adding a co-owner as a partial transfer of interest, and land transfer tax can apply to the value of what's conveyed, including a share of any mortgage assumed. A spousal exemption can reduce or eliminate it in qualifying cases, but it must be claimed correctly — confirm with your lawyer before assuming a transfer is tax-free.
This page is general information, not legal advice, and does not create a lawyer-client relationship. Ontario and CRA rules on assignments, HST, and land transfer tax change — for advice about your specific transaction, speak with a licensed Ontario lawyer.
Open your file tonight — a licensed Ontario lawyer will walk through your assignment or title transfer with you in writing.