People are choosing to assign their pre-construction condo purchases for several reasons, many of which stem from financial, market, and personal factors. Assigning a condo means selling the purchase contract to another buyer before the unit is completed, typically for a fee or profit.

When the real estate market is hot, and condo prices increase between the time of purchase and the building's completion, the original buyer may assign the condo for a profit. Investors often see assignments as a way to capitalize on rising property values without having to close on the property and take on a mortgage.

In contrast, if the market cools and prices are expected to stagnate or fall, some buyers may assign the contract to avoid being locked into a potentially less valuable asset.

Closing on a pre-construction condo involves significant costs, including land transfer taxes, legal fees, and sometimes HST (for investment properties). By assigning the contract before completion, the original buyer avoids these costs, passing them on to the new buyer​.

Sometimes buyers are unable to secure the financing needed to close on the condo, especially if market conditions or personal financial situations change between the time of purchase and completion. Rather than forfeiting their deposit or facing financial strain, they may assign the contract to another buyer.

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