The Toronto pre-construction market has shifted dramatically over the past two years. With rising rates, delayed projects, and changing personal situations, more buyers are turning to assignment sales as a way to exit their original purchase agreements before closing.
Assignment activity has picked up, but selling an assignment is far from straightforward. Here’s a look at what’s happening in the market right now — and what sellers can do to increase their chances of a successful assignment sale.
Why So Many Buyers Are Turning to Assignments
Several factors are driving the recent surge:
- Higher carrying costs making closings difficult
- Interest rate hikes affecting mortgage qualification
- Delays in occupancy or construction creating uncertainty
- Investors exiting early to avoid rental or closing risks
- Buyers relocating or facing personal financial changes
Assignments have become a practical exit strategy — but not all assignments are equal, and not all buyers understand the process.
The Biggest Challenges Sellers Are Facing
Selling a condo assignment in Toronto comes with unique obstacles:
1. Builder Restrictions
Many builders require:
- Approval fees
- Marketing restrictions
- Only authorized platforms or agents
- Delays while reviewing assignment paperwork
These delays can kill momentum for a motivated seller.
2. Market Conditions
With more assignments hitting the market than ever before, buyers have options — and they’re negotiating harder. Some projects no longer command the premium they once did.
3. Limited Exposure
Unlike resale condos, assignments can’t always be openly marketed on MLS. This makes visibility a challenge unless sellers and agents use specialized channels.
4. Pricing Confusion
Buyers often misunderstand:
- The original purchase price
- Deposits paid
- Assignor’s profit (or loss)
- Builder adjustments and closing costs
Clarity is critical to getting real, qualified interest.
Where the Opportunities Are
Even in a challenging environment, assignments can still create win-win scenarios:
- Buyers can sometimes acquire pre-con units below current builder prices.
- Investors can exit without taking on closing risk.
- Agents who understand the assignment process can tap into a growing niche.
Well-priced assignments in strong, established locations continue to move.
How Sellers Can Improve Their Chances of Selling
Success today requires strategy. Sellers and their agents should focus on:
1. Clear, transparent pricing
Break down:
- original purchase price
- deposits paid
- assignment price
- closing expectations
Simplicity builds trust and speeds up inquiries.
2. Professional marketing
Because MLS exposure is often restricted, sellers need targeted assignment platforms and communities where buyers actively search.
3. Builder-friendly documentation
Providing all required approvals and details upfront reduces uncertainty for assignment buyers.
4. Competitive, realistic expectations
The pre-con market is not what it was in 2020–2021. Pricing realistically makes a massive difference.
A Central Hub for Assignment Listings
To help with visibility, I created AssignmentListings.ca, a platform where condo sellers and agents can post pre-construction assignments specifically for the Toronto and GTA market.
This gives sellers a dedicated channel to reach buyers who are already looking for assignment opportunities — solving one of the biggest challenges in the process: exposure.
Final Thoughts
Assignment sales are becoming a major part of Toronto’s real estate landscape. With the right preparation, clear pricing, and proper marketing, sellers can still find success — even in today’s tougher environment.
And for agents, understanding assignments isn’t just useful anymore — it’s becoming an essential skill.
