Selling Your Pre-Construction Home Before Closing: How Assignments Work in Ontario (2026)

In Ontario you can often sell a pre-construction condo or home before it closes through an assignment sale. A new buyer takes over your agreement with the builder and repays you what you have put in, plus any profit. Whether you can do this, and on what terms, depends on the assignment clause in your agreement and on the builder’s consent, so check those before you set a price. As of November 2026, fees, listing rules and timing vary by builder and by project, and tax can apply to any gain.

What an assignment sale is

When you buy pre-construction, you sign an agreement of purchase and sale with the builder. Until closing you don’t own the home. You own the right to buy it when it is finished. In an assignment you (the assignor) transfer that right to a new buyer (the assignee). The assignee takes your place and closes with the builder when the home is ready.

This is not the same as a resale. There is no title to transfer yet, the builder usually has a say, and there are two prices: what your buyer pays you for the contract, and the original purchase price they will pay the builder on closing. Assignments are most common with pre-construction condos, but they also happen with new townhomes and detached homes.

Step by step: how to sell your assignment

Read the assignment clause in your agreement

Start with your agreement of purchase and sale, plus every amendment and schedule. Find the section on assignment and check:

• Whether assignment is allowed at all, or only with the builder’s written consent.
• Whether there is an assignment fee, and who pays it.
• Whether you may advertise the unit publicly or only market it privately.
• Whether assignment is only allowed at certain stages of the project, or is blocked until the builder has finished selling.
• Whether you stay responsible to the builder if your buyer doesn’t close.

If the clause says assignment is not permitted, don’t list the unit. Talk to a real estate lawyer about your options first. Agreements differ a lot between builders, and sometimes between phases of the same project, so don’t assume your neighbour’s terms are the same as yours.

Ask the builder for consent and confirm the cost

Many agreements require the builder’s written approval before an assignment can go ahead. The builder may also charge an assignment fee and pass on its own legal costs. These fees vary by builder, and we don’t quote a typical figure. The amount should come from your agreement or from the builder in writing. Get the full cost confirmed before you accept an offer, because it comes out of what you receive.

Ask the builder what it needs from you and your buyer: forms, the buyer’s identification and financing, and how long its review usually takes. Some builders also want deposits to be fully paid up to date before they approve an assignment.

Check listing and marketing restrictions

Some builders limit how an assignment can be advertised, especially while they are still selling units in the same project. That can mean no public listing, no advertised price, or no use of the builder’s renderings. Breaking these rules can put the builder’s consent at risk. Confirm what is allowed before any marketing starts, and work with a registered real estate professional who handles assignments.

Price against today’s market, not what you paid

Buyers will compare your unit with three things:

• The builder’s own remaining units, including any incentives being offered now.
• Other assignments in the same building or nearby projects.
• Finished homes they could buy and move into right away, including move-in-ready homes.

Look at what is selling now in your area, for example on our Toronto pre-construction page, to see what your buyer can get elsewhere. Then remember how the numbers fit together: your buyer repays your deposits (and any profit), and on closing they must still pay the builder the balance of the original price. They will need a mortgage on that amount, and the lender’s appraisal at closing may come in lower than the price. A careful buyer will factor in that risk, which affects what they will offer you.

Plan how your deposit comes back to you

The deposits you paid the builder stay with the builder and are credited on final closing. Your buyer repays you for them under the assignment agreement. That agreement should state clearly:

• How much of your deposit the buyer repays, and how much profit (if any) on top.
• When each payment is made, for example on signing, on builder consent, or on final closing.
• Who holds the buyer’s money in trust until then.

Have your lawyer review these terms before you sign. How deposit repayment is structured is one of the biggest differences between a smooth assignment and a stressful one.

Work back from your closing timeline

Builder consent, the buyer’s financing approval and the lawyers’ work all take time. Leave room for all of them before your occupancy or closing date. New condos often have an interim occupancy period before final closing, when the purchaser lives in or controls the unit and pays occupancy fees before title is registered. Check whether your builder allows assignments during that period.

Construction dates can also move. Your agreement sets out how and when the builder may extend them. Read those terms so you know whether your window to assign could get longer or shorter.

Close the assignment

Once you have a signed assignment agreement and the builder’s consent, the lawyers on both sides complete the paperwork. The buyer then takes over your agreement and closes with the builder on the final closing date.

Seller checklist at a glance

Step	What to check	Who helps
Assignment clause	Allowed or not, consent needed, restrictions, your ongoing liability	Real estate lawyer
Builder consent and fee	Fee amount in writing, builder legal costs, documents needed	Builder, lawyer
Marketing	Whether public listing or advertised prices are allowed	Registered agent
Pricing	Builder inventory and incentives, other assignments, finished homes	Agent
Deposit repayment	Amounts, timing, who holds funds in trust	Lawyer
Timeline	Consent time, buyer financing, occupancy and closing dates	Lawyer, agent
Tax	How your profit is taxed, GST/HST questions	Accountant

Taxes and HST: the basics

Any profit on an assignment may be taxable. How it is taxed depends on your situation: why you bought, how long you held the contract, and whether you have done this before. Assignment sales can also raise GST/HST questions, and rules in this area have been changing. We cover the tax side in detail in our separate guide to assignment taxes, so we won’t repeat it here.

Before you accept an offer, ask an accountant to estimate your tax on the sale. That way you know what you will actually keep and can price with that in mind.

A note on Tarion and freehold homes

Tarion runs new home warranty enrolment and the guarantee fund. The Home Construction Regulatory Authority (HCRA) licenses builders and keeps the Ontario Builder Directory. Since July 1, 2025, purchasers of new freehold homes must notify Tarion of their purchase within 45 days of signing the agreement (Ontario Regulation 17/25). The notice covers the purchaser, the vendor, the property and the total deposits. This rule applies to freehold homes, not condos. It has not been confirmed whether a new notice is needed when an assignee takes over, so if you are assigning a freehold home, ask your lawyer to check with Tarion.

Risks if the market is below your purchase price

Assignments are easiest when values have gone up. If similar homes now sell for less than your original price, be realistic:

• You may not get all your deposit back. A buyer won’t pay more for your contract than the unit is worth to them, so you may have to accept less than you put in.
• The builder may be your competitor. If it is offering incentives on similar units, buyers may prefer those.
• Your buyer has an appraisal risk. If the home appraises below the original price at closing, the buyer must cover the gap, which makes some buyers cautious.
• You may stay on the hook. Depending on your agreement, you may remain responsible to the builder if the assignee fails to close.
• If no one buys, you still have to close. If you can’t close, your agreement may let the builder keep your deposit and pursue other remedies. Get legal advice early rather than late.

If an assignment doesn’t work, other options may include closing and renting the home out, closing and later selling it as a resale, or asking the builder whether it has any options for your situation. Arrange mortgage pre-approval early so you know whether closing is possible.

Frequently asked questions

Can I sell my pre-construction condo before it closes?

Often yes, through an assignment, but only if your agreement allows it. Many agreements also require the builder’s written consent.

How much is a builder’s assignment fee?

It varies by builder and project. Check your agreement and get the amount in writing from the builder before you accept an offer.

Can I list my assignment publicly?

That depends on your builder. Some limit public listings or advertised prices, especially while they are still selling units. Confirm before marketing starts.

Do I get my deposit back?

Your buyer repays you under the assignment agreement, on the terms you negotiate. If market values have dropped, you may get back less than you paid.

Do I pay tax on an assignment profit?

Possibly, and GST/HST questions can come up too. Speak to an accountant and read our assignment tax guide.

Thinking about selling your assignment, or buying one? Contact Tall Property at 416-878-0749 to talk it through.

This is general information, not legal or tax advice. Speak to a real estate lawyer and an accountant about your own agreement and situation.