Purchasing Brand New

Presales and Assignment Sales

How to judge the risk and maximize the rewards

In a glitzy showroom filled market that moves fast,
here are the tools to get you literally onto the "ground floor"
in this specialized real estate investment.

Buyers get 25%* Cash Back with our Buyer Bonus

When you buy with us, we'll give you 25% of the Co-operating Brokerage commission that we receive
Call us today and get us working for you.
Buyer Bonus
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Paid to Buyers of
7026 - 178a Ave
September 2019

Presales and Assignments

What's the difference?

Let's take a look at Presales
A presale is a condo that is not yet built but is available for "purchase". It is released onto the market by a Developer in some cases, before the construction has even begun. Typically, a Developer launches the development's presales in a showroom that provides all of the details of the future development. What it will include for amenities, what suites will look like. You are even able to choose what final colour palette your future home or investment will have all by choosing features in the showroom.
Presales are often very easy to get into. You typically only need to pay a deposit and agree to a schedule of future deposits which helps some people to break the initial investment into stages that are more affordable. Keep in mind you will still need to qualify with your lender to pay the full price but at least you don't have to qualify for that mortgage right away. 
For some, presales are a great way to get into the market affordably. However, if the market values fall over the two or so years it takes for the Developer to complete the building, converting your presale to an assignment sale that looks like a good opportunity to buyers may be a challenge.

Presale Pros and Cons

Easy to Get Into

But what about getting out?


Qualifying for your mortgage happens often years after your initial deposit is paid. Which provides time for you to improve your financial picture while securing your future home. Sometimes, it's a little too easy...

Developer Bonuses

Getting to be one of the first purchasers in a development can sometimes get you rebates on GST, or bonuses from the developer provided to you as credits to help with furniture known as "designer bonuses".

Reading the fine print on these "bonuses" is critical.

Locking in Value

While in a falling market this could set you up to convert your winning presale into a losing assignment, in a rising market, it's a different story.


On an upswing, your presale price becomes an unheard of bargain when prices have risen around your investment.

Brand New Comfort

Some feel the warranty behind a brand new development is all the piece of mind they need in a home purchase.


For this reason, it's imperative to research a developer's track history of honouring warranties on other developments.

What About Assignment Sales?

Modern Kitchen
Modern Housing Complex
Apartment Views
Apartment Building
Modern Loft
Red Building
So, what is an Assignment Sale anyway?
An assignment sale is a sale of the rights to the purchase of the presale that a buyer has previously purchased. With an Assignment Sale, a seller is known as an "assignor" and the buyer is known as an "assignee".
Sometimes an assignor wants to flip the purchase of their presale. This becomes especially popular when the market has risen because the Assignor then has a chance to gain sometimes what is a significant profit by selling the rights to their presale purchase. Sometimes, it's the other way around, the market has fallen and an Assignor cannot get the mortgage qualification approved.
Purchasing an assignment sale can sometimes be a great investment strategy, however as with all things, there is much to be aware of.

Assignment Sale Pro's and Cons

Sold Out Second Chances

Often a building will be completely sold out so an assignment sale can be an excellent opportunity to get what you might have missed out on the first time around.

However sometimes you pay more for it (market rise) or sometimes it's a steal!

Deposits & Taxes

Buying a presale that has gone on to become an assignment sale doesn't get you out of paying the original deposit to the developer, nor out of the GST payable on your assignment purchase.

We can walk you through all of the in's and out's of this dollar jungle.

Developer Approval + Cut

If you are considering selling your presale as an assignment sale, bear in mind the Developer will want their cut. Assignment fees are typically 3% of the original purchase price so this can really cut into your profits on a sale.

You will also need to obtain the Developer's permission to market your presale before listing.

Buying Rights

Keep in mind that an assignment sale is the actual purchasing of rights to the future home that the Developer is constructing. 

What if the Developer doesn't complete the construction? Yes, your deposit goes back to you but what about your lost time following this investment?

Curious if either Presales or Assignment Sales are a good fit for you?

Missed out on a development the first time? Looking for a good investment opportunity? See what's available in your area now.

Want to learn more?

25% Terms & Conditions

What if I'm already working with an Agent? Can I take advantage of your 25% Buyer Bonus? Sorry, our 25% Buyer Bonus is not intended to solicit buyers currently working with an agent or individuals currently under contract with a brokerage. How Can I Qualify for your 25% Buyer Bonus: As a Buyer, you must purchase with us, Kate Jackson Personal Real Estate Corporation, as your Co-operating Brokerage Buyer's Agent Representative contracted for the purchase transaction on any property you may choose. Does It Matter What I Buy or Whose Listing It Is? Not a bit! Our 25% Buyer Bonus program will pay you on any home you would like to purchase, listed in any area, of any price, of any commission model, listed by any Agent. We just need to be the representation on the deal for you as our Buyer.
Exactly how much will I get paid?
We will issue you a bank draft made out to you personally in Canadian funds, equal to 25% of the commission we receive on your purchase, after the following expenses are deducted: GST of 5% will be deducted from the Co-operating Brokerage commission before calculation of payout of funds amount. A $450 + 5% GST ($472.50) deal fee amount will be deducted from the Co-operating Brokerage commission before calculation of funds amount.
Exactly when will I get paid? We will send your funds to you via registered, trackable Canada Post mail within 30 days of the Completion Date of your purchase with us.

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