The following explanation here as if you are assigning a pre-sale purchase. NOT assigning a re-sale purchase, which is ill get to after.
Much like a typical re-sale property. Find an agent that is experienced in pre-sales and assignments (LIKE ME!). They are a bit trickier than a typical re-sale purchase and sale, there are loads of terms and conditions that are applicable on an assignment sale that are not typical on a typical re-sale purchase and sale.
First things first, refer back to the original contract of purchase and sale that you signed with the vendor, does it allow assignments? if so, what are the terms conditions in assigning that home. Some restrictions/terms placed by developers include:
- The complex has to be sold out before developer will allow assignments
- The Timeline when you can sell it. Some developers will only allow a certain window, after a certain date to a certain date. Usually this window starts after the building permit is issued, and expires 3 months before expected completion.
- Who you can assign it too. Recently some developers will not allow Foreign buyers to assign local buyers (tax evasion etc)
- Fees: Developers can charge assignment fees anywhere from 1%-5% of the purchase price, what purchase price do you ask? thats a very good question. In most cases the developers fee will be based on the Original Purchase price, but in some cases the fee is paid on what you sell it for. and no, you can't sell it for a $1, developer a) will see right through it and b) will not allow the assignment. Some developer assignment fees can also be 25% to 50% of the Lift (profit). (there are other cost to be considered, this is purely developer assignment fees)
- Restrict public advertising: Some developers will not allow assignments on MLS, or even use the building name or marketing material. This is where its important to use an experienced agent that has a good network.
Assigning an already built home is a whole different situation. After the term "Shadow Flipping" was coined by a previous Government, it put a black eye on assignments (and in some cases, rightfully so. Unscrupulous agents taking advantage of a rising market at the expense of some sellers) Assigning a home you bought on a re-sale market is a bit more complicated. Prior to 2015, you didn't need permission from the original seller to assign the property, you could just re-list the property on MLS and sell it, sometimes the seller wouldn't know who bought it until completion.
Now not only do you have to get permission from the seller, but the original seller also gets 100% of the profits. So you purchase a property from the Jones, a little while something changes to your life and you need to sell it, you call up your agent and they find a buyer for that property for $50,000 profit. The Jones have to a) approve the assignment and b) have the right to lift (profit). Because of the new rule change. Assigning a re-sale home is typically done only for emergency situations where the original buyers financial situation drastically changed.