BC Real Estate Assignment Sales: Complete Guide for Buyers, Sellers & Realtors (2026)
Assignment sales — particularly of pre-sale condominium contracts — are a distinct and complex segment of BC's real estate market. This guide covers how they work, the tax implications, developer consent rules, and the elevated compliance obligations for realtors involved in assignment transactions.
Assignment sale basics
In a pre-sale assignment, three parties are involved:
Original seller — holds the land/building and has the original purchase contract with the assignor. Must consent to assignment (if required by contract).
The person who originally signed the pre-sale contract. Sells their contractual position to the assignee for an agreed price (typically at a profit above their original deposit basis).
Steps into the assignor's shoes — takes over all rights and obligations under the original developer contract. Completes the purchase with the developer at the original purchase price plus completes the assignment purchase to the assignor.
Example transaction
Original buyer signed a pre-sale contract in 2022 for $700,000, paying a $70,000 deposit. Building completes in 2026. Buyer assigns to a new buyer for $920,000 (the current market value). The assignor's profit before tax is $220,000 (the difference between original price and assignment price). The assignee then completes the original purchase with the developer at $700,000 — not at $920,000. The $220,000 is the "assignment fee" paid directly from assignee to assignor.
Developer consent and assignment restrictions
The first step in any assignment transaction is reviewing the original developer contract for assignment provisions. Developers take widely different approaches:
| Developer stance | What it means | Fee typical range |
|---|---|---|
| No assignment allowed | Contract prohibits all assignments — original buyer cannot exit via assignment | N/A |
| Consent required, fee applies | Developer must approve in writing; charges administrative fee | $1,000–$10,000+ |
| Consent required, no fee | Developer must approve but doesn't charge; may share in profit | $0 (may take % of profit) |
| Free assignment | No restriction; assignor can sell to any qualified buyer | $0 |
| Post-date restriction | Assignment allowed only after specific date (often 90–180 days before completion) | Varies |
Tax implications: the most common misunderstanding
Assignment sales have significant tax implications that many assignors underestimate. Realtors should not provide tax advice but must ensure clients are aware of the complexity and refer them to a qualified accountant or tax lawyer.
Key tax considerations
GST on assignment profit
The CRA requires GST to be collected on the profit portion of an assignment (amount above original purchase price). As of 2022, the assignor (or their GST-registered agent) must remit this. Failure to do so can result in assessments against the assignee.
Income tax: business income vs. capital gain
The CRA presumes assignment profits are business income (fully taxable at marginal rate) unless the assignor can prove the original purchase was for personal occupancy. This is a very high bar — simply stating intent is insufficient. Professional tax advice is essential.
Principal Residence Exemption
Assignment profits are generally not eligible for the Principal Residence Exemption because the assignor never occupied the property as a residence.
Property Transfer Tax (assignee)
The assignee pays PTT on the full purchase price (original developer price + assignment fee combined). This is often larger than expected.
REDMA disclosure requirements
The Real Estate Development Marketing Act (REDMA) governs the marketing and sale of new development properties in BC, including pre-sale assignments. When an assignment involves a REDMA-covered property, the assignee has specific rights:
- •The assignee is entitled to receive the current disclosure statement (including all amendments) before completing the assignment.
- •The assignee has a 7-day rescission right from receipt of the disclosure statement — separate from the original buyer's right under HBRP.
- •If material amendments have been made to the disclosure statement since original purchase (floor plan changes, amenity changes, construction delays), the assignee must be informed and may have additional rescission rights.
- •Realtors representing assignees must ensure their client receives and reviews the disclosure statement as part of their due diligence.
Realtor checklist for assignment transactions
Representing the assignor
Review original developer contract for assignment provisions
Confirm developer consent process and fee
Advise client to get tax advice before proceeding
Document original purchase price and deposit paid
Address commission in listing agreement explicitly
Ensure assignment marketing complies with developer restrictions
Verify timing: building completion vs. assignment closing
Representing the assignee
Obtain and review current REDMA disclosure statement
Confirm assignee's 7-day REDMA rescission right
Advise client to review original developer contract
Advise on GST implications for assignee at completion
Calculate total PTT exposure (developer price + assignment fee)
Review building completion timeline and completion risk
Ensure financing is available for both developer price and assignment fee
Frequently asked questions
What is an assignment sale in BC real estate?
An assignment sale occurs when the original buyer of a contract (the 'assignor') sells their contractual rights and obligations to a new buyer (the 'assignee') before the original transaction completes. Most assignment sales involve pre-sale condominiums — a buyer who signed a pre-sale contract years ago sells that contract to a new buyer at a profit before the building completes. The assignee then completes the original purchase with the developer. Assignment sales can also occur for resale properties when the original buyer wants or needs to exit the contract before completion — though these are less common and require the seller's consent.
Do developers have to allow assignment sales?
No — assignment rights are governed by the original purchase contract with the developer. Many developers prohibit assignments or require their written consent and charge an assignment fee ($1,000–$10,000 or higher). Some developers allow assignments with restrictions (e.g., only after a certain date, only to arm's-length parties, not to other developers). The developer's disclosure statement under REDMA typically addresses assignment rights. Realtors representing potential assignors must review the original purchase contract for assignment provisions before the client makes any commitments about selling their assignment.
How is GST applied to assignment sales in BC?
The GST treatment of assignment sales is complex and has evolved significantly. As of 2022, the CRA requires that GST be collected on the 'profit' portion of an assignment (the amount above the original purchase price paid to the developer). If the original buyer paid $600,000 to the developer and assigns for $750,000, the $150,000 profit is subject to GST. The assignor is responsible for remitting GST unless the assignee is a GST registrant. Additionally, the CRA has been actively auditing assignment sale transactions and presumes they are business income (fully taxable) rather than capital gains unless the taxpayer can prove they purchased for personal use. Both assignors and assignees should obtain advice from a qualified tax professional before proceeding.
What is the REDMA disclosure requirement for assignment of pre-sale contracts?
Under the Real Estate Development Marketing Act (REDMA), developers marketing strata lots are required to provide a disclosure statement to buyers, including details about assignment restrictions. When a pre-sale contract is assigned, the assignee is entitled to the same disclosure rights as the original buyer — they should receive and review the current disclosure statement before completing the assignment. BCFSA practice standards require realtors to ensure their assignee clients have received and reviewed all relevant disclosure documents, including any amendments to the original disclosure statement that occurred after the original purchase.
Are there risks for realtors representing assignment sales?
Yes — assignment sales carry elevated E&O risk due to their complexity. Key risks include: failing to advise clients that developer consent is required (and deal falls through); not addressing GST implications (client faces unexpected tax liability); missing assignment restrictions in the original contract; failing to ensure assignee gets a fresh REDMA disclosure statement; not addressing what happens if the original developer contract falls through after the assignment; and commission uncertainty (realtors' commission rights in assignment transactions must be explicitly addressed in the listing agreement and assignment documentation). Given these risks, realtors should ensure assignment clients consult with a real estate lawyer and tax accountant before proceeding.
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