|Why would someone want to assign their condo?
Often with pre-construction sales, there is a long time lag between when the original contract is entered into, when the buyer can move in (interim occupancy period*) and the final closing. It is not uncommon for a Buyer’s circumstances to change during that time. What worked for a Buyer’s lifestyle at time of purchase does not always work come closing time.
Another common reason is financial. Sometimes, the original purchaser does not have the funds or cannot get the financing to complete the sale, and it is cheaper to assign the contract to a new purchaser, than it is to renege on the sale.
Lastly, assignment sales are also common with speculative investors who buy pre-construction properties with no intention of closing on them. In these cases, the investors are banking on quick price appreciation and are eager to lock in a profit now, vs. waiting for the original closing date.
*Interim occupancy period: - The period of time between the building being green-lighted for occupancy and it being registered is known as the interim occupancy period when owners move in (and investors start renting out to tenants) but do not technically own their units yet.