Selling Before Completion: Assignment Sales and Presale Profits

When you sign a contract for a presale condo that won’t be finished for three years, you are making a commitment to the future. But life changes. Job relocations happen, families grow, and sometimes you just want to cash out your investment early.

You need to understand your options: Can I sell my presale condo before it’s finished? What exactly is an assignment sale? How much does a developer charge for an assignment fee, and are presales guaranteed to increase in value?

At Presale Properties, we believe that every good investment starts with a clear exit strategy. If you buy a presale without knowing how to get out, your capital is trapped. This guide explains the mechanics of assignment sales, the fees involved, and how to execute a profitable exit before the building is even finished.

The Reality of Assignment Sales

An assignment sale is the process of selling your presale contract to a new buyer before the building is completed. You are not selling a physical condo; you are selling the rights and obligations of the contract you signed with the developer.

In a strong market, this is how many investors generate significant returns. The math is compelling when conditions align:

However, this strategy depends entirely on market appreciation. Developers also price presales based on future projections — if the market cools or remains flat, your unit may not appreciate enough to cover the costs of an assignment sale.

Why This Matters to You

If you are an investor, the assignment flip is a calculated play. But developers control the board. They implement strict rules to ensure your assignment sale doesn’t compete with their remaining unsold units.

If you are a first-time buyer, an assignment sale might become a necessity if your financial situation changes and you can no longer qualify for a mortgage at completion. But if you are forced to sell in a down market, you may have to assign the contract for less than you originally paid, resulting in a loss of your deposit.

How to Execute a Safe Exit

Here is the framework for protecting your capital and executing a profitable assignment:

1. Review the Developer’s Rules. Can I sell my presale condo before it’s finished? Only if your contract allows it. Some developers prohibit assignments entirely. Others require the building to be 90% sold out before granting permission. Read this clause before you sign — your exit strategy depends on it.
2. Factor in the Assignment Fee. How much does a developer charge for an assignment fee? Typically 1% to 3% of the original purchase price, though some developers charge a flat administrative fee. This must be factored into profit calculations from day one. A key strategy is to negotiate this fee before you sign the original contract.
3. Navigate the Marketing Restrictions. Developers rarely allow you to list an assignment sale on the public MLS because they don’t want you undercutting their unsold inventory. You must rely on a realtor with a strong private network and experience in assignment transactions to find a qualified buyer quietly.
4. Prepare for Taxes. The CRA heavily scrutinizes assignment sales. If your primary intention was to flip the contract, the profits are taxed as fully taxable business income — not capital gains. BC’s home flipping tax also applies to presale contracts assigned within 24 months of signing.