AZ Real Estate Partners
Pre-Construction Assignment Rights Explained: A Yorkville Case Study
In the same tower, some buyers can assign for profit, others can only lease during occupancy, and some are locked in completely. The difference lives in the developer’s agreement.
What an assignment actually is
Assignment is the transfer of an Agreement of Purchase and Sale from the original buyer to a new buyer — the contract position is sold, not the property itself.
Key point: whether you can assign, how much it costs, and whether developer consent is required are all defined in the original APS.
Three core rights you buy in a pre-con APS
A pre-construction purchase is really three bundled rights: 1) the right (and obligation) to close on the unit; 2) the right to live in or rent the unit during Interim Occupancy; 3) the right to assign the contract before closing.
None of these rights is automatic. Each is governed by the developer’s APS clauses. Most GTA projects allow assignment with consent and an Assignment Fee of $2,000-$15,000, but high-end Yorkville and Bloor-Yonge buildings carry stricter terms.
Anchored on 11 Yorkville — a typical high-end APS pattern
Executing an assignment — step by step
Hidden constraints in high-end projects
Some developers require minimum occupancy before allowing assignment, or cap total assignments per unit (e.g., once only). High-end Yorkville and Bloor towers tend to use the most restrictive clauses. Always have a lawyer review the full APS.
FAQ
What's the difference between assigning and selling after final closing?
Assignment transfers the original APS contract — the assignee closes with the developer. Selling after final closing means you took title first and resold as ordinary resale — no assignment restrictions but longer timeline plus title registration.
Will the developer always approve an assignment?
Not always. Standard APS language says "consent shall not be unreasonably withheld," but developers commonly refuse during the active sales phase to avoid competing with their inventory.
How is assignment profit taxed?
If the CRA classifies the intent as profit-seeking flipping, the entire gain is taxed as business income (100% included). If holding intent changed, it may qualify as capital gains (50% included). HST also applies. Get pre-deal tax advice.
Can I rent the unit during Interim Occupancy?
Most GTA projects prohibit leasing during Interim Occupancy. A Lease Permission application is required and frequently denied.
Typical Assignment Fee range?
$5,000-$15,000 in the GTA. Mass-market condos charge $5k-$8k; Yorkville and King West premium projects charge $10k-$15k+. Some scale by floor or unit type.
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