Dennis Paul Paradis

Dennis Paul Paradis

REALTOR®

RE/MAX Hallmark York Group Realty Ltd.

Mobile:
416-399-5832
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The Process

How the Condo Assignment Process WorksAssign this condo

How the Assignment Process Works - SELLERS

Skip to BUYERS CONSULT if you are Interested in Buying an Assignment

 

Step 1: Contact Dennis Paradis,  416-399-5832 ( cell/text) for a  Consultation  

Complete the Condo Data Form before your call is optional

Consult usually requires 15 - 30 mins. 

Purpose: To answer your questions or discuss any concerns you may have about the Seller Assignment requirements and process.

I cannot consult with you if you are under an Assignment Listing Agreement by RECO (regulations) Rules.

Full Disclosure of Fees - Seller Pays ALL the Realty Fees:

1a.  Realty Fees -  Listing Side:  3.0 % - 4.0 %  plus HST  - based on your new assignment selling price.  Discounts of up to 1% may apply to make the listing fee as low as 3% on the listing side

1b. Realty Fees -  Buyer Co-op Side:  2.5% plus HST  - based on your new assignment selling price. 

Total Realty Fees  (Listing + Buyer):  5.5 - 6.5% plus HST

Listing Fees may be lower based on several factors - MLS available (permission to use), closing date, multiple unit discounts, advanced payments.

My Terms/Conditions:

2.  Listing Agreement period is a minimum of 6 months  - depending on the market and starting season it takes 3-4 months to sell and then several weeks get thru the builder approval process.

3.  Your builder allows Assignments and has given you permission "in principle" to assign in writing (email is fine). They always reserve the right to "final approval "of your new buyer (assignee) based on a credit check and proof of financial pre-approval.

4.  Net Proceeds paid out usually at Final Closing  -  Net Proceeds is your Profit (sell price less the buy price and selling expenses).  In addition, you get back all the deposits you made to the Builder. It is not unusual now to have some or all of the Net Proceeds paid in advance well ahead of final closing - see below ...

5. Advanced Payments
Unlike deposits, this is money is NOT held in trust and can be used/spent by the Assignor,

These payouts are partial or complete payouts of what is owed the Assignor (Profit + Deposits)
 

6. Timing of Advance

  1. Builder Acceptance Date (earliest settlement date) This kind of deal is trending up in frequency. 
     
  2. Final Closing (latest settlement date) after the condo registered and the title is transferred to Assignee.  At Final Closing, Assignor and Builder get paid by the Assignee. The Amount is, of course, the total owing either Assignee or Builder at this point, minus advanced payments, if any.
     
  3. Any time in between 1 & 2  above.

Note: Besides the Timing of Advance Payment, the Amount is also negotiable. Example. advance payment of all deposits assignor paid builder but profit paid at final closing.

 

Step 2:   Data Collection

If not already done, Please Complete Your Condo Profile

If the Preliminary Consult (Step 1 above) looks good (to both of us) then I will need you to provide more information about your property. 

These details are used in Step 3 to establish your property market value and list price.

If you are ready, please complete the form:

 

Step 3: Market Value & List Price - Discuss by Phone

After we agree on the Market Value & List Price and the Terms of the Agreement, the next step is to put this in writing in your Assignment Listing Agreement, Step 4, below.

Your condo's market value is assessed using several metods to establish its best possible Listing Price. 

Assignments require an experienced realtor as MLS Data is usually not avaiable on the Sales thru Assignment of properties.
 

Step 4: Assignment Listing Agreement

There has been no cost or obligation for you up to this point.

To proceed from here, we need to commit to working together via a Listing Agreement and related documents, e.g.; Working with a Realtor.  

The Listing Agreement  (TREB Form 200a) is the same as used for authorizing an agent to list and sell a condo resale. The MLS Data Information Form  (291) is also needed (even if MLS is not allowed) but with important differences from resale when it comes to the data available to complete the form, eg; condo fees and property taxes are only estimated when the condo/project is not yet built and registered.

 

Step 5: Implement Your Premium Assignment Marketing Plan

 Marketing Plan is activated

 

Step 6: Offers Negotiated, Conditions Managed, and  Deal Closed

We receive offers, negotiate a deal, manage the conditions, and get final approval from the Builder whereby the Assignee (new buyer) "steps into your shoes" as the assigned buyer of the property.

All costs associated with the purchase going forward are now borne by the Assignee (new buyer) including future deposits if any, occupancy fees, and of course final closing costs.

Then, we all wait for the date when the monies are dispersed (as explained in Step 1 - part 4, above). 

 

Ready to Start? Call or Text me now at

416-399-5832

Open for Business 7 days a week 8:00 - 8:00

Trust My ExperienceTM

 

 

How The Assignment Process Works - BUYERS


Step 1 BUYERS): Contact Dennis Paradis,  416-399-5832 ( cell/text) for a  Consultation  

Consult usually requires 15 - 30 mins. (no Cost or Obligation)

I cannot consult with you if you are under a Buyer Agreement for a Assignment Purchase by RECO (regulations) Rules

Purpose: To answer your questions or discuss any concerns you may have about the Seller Assignment requirements and process:

Full Disclosure of Fees - Sellers Pay ALL the Realty Fees

 

Step 2:  Your Financial Status and Timing

If the Preliminary Consult (Step 1 above) looks good then I will need you to provide more information about your financial status. 

Key Questions:  You are/have ...

  1. Pre-approved by a lender? Note: Not just pre-qualified. 
  2. Your Credit Report and Score 
    • from either Equifax or - for you and any partners that will be on title or are co-signing.
    • I can put you in contact with top lenders from my Team who are experienced with condo assignment purchases. This is essential for you!

Step 3:  You make me your Buyer Agent

  1. Buyer Representation Agreement = Explained and You Sign via Electronic Signature (no need to meet face-to Face)
  • In short, you make a commitment to use me exclusively for the next 6 months to help you find a condo that fits your wish list at a price you can afford.
  • You also may decide not to buy a condo during this time period.  
  • The Buyer Agreement simply means that IF you decide to buy, you will buy using my services.
  • My fees are paid by the Seller, NOT by you. I, however, work for YOU - Not the Seller!

Step 4:  Search for and Review Properties

  • Buyers often have already identified a project and even the very unit they are interested in BEFORE they contact me.
  • However, I can assist with the buying process when you start from an earlier stage. Good idea actually.

 

Step 5: Market Value and Cash Flow Report - Before you Make An Offer

  • You will receive a Market Value Report showing the current market value of the property you have selected. This will be the basis for your deciding on your Offer price.
  • You will receive a Cash Flow Report, an exclusive of my service, that will make sure you know the costs that that will be incurred from start (deposit) to finish (final closing) and that you have all the necessary funds on-hand or available for each step along the way.

 
Step 6: Offer & Final Agreement

  • I will prepare an Offer on your behalf with all the recommended time-tested terms and conditions that will benefit and protect you. 
  • I will present this to the Seller or the Seller's agent and negotiate thru to a Firm & Final Agreement if and when this is decided by you.
  • I will ensure that the process is tracked and managed thru to Final Closing along with your lender and lawyer. My Buyers can choose from my trusted partners for these professionals. See Team
  • This is a simplified summary of the Process. We will cover the process in more detail when you become my client.

FEES

  • My Buyer Fees are 2.50% plus HST. These are paid by the Seller, not you as the Buyer. 

 

Ready to Start? Call or Text me now at

416-399-5832

(Open for Business 7 days a week 8:00 - 8:00)

Trust My ExperienceTM

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