#VerityAnswers – Can I Flip My New Construction Condo Before It Is Completed?
You can sell your condo before it is done IF you negotiate an assignment clause into your contract and if permission is granted by the developer.
An assignment clause allows you to sell your contract to another buyer. When you purchase a new condo, you’re effectively buying a condo, when it is complete so selling before then would require the consent of the developer, who owns the unit. Developers might charge you $500-$10,000 to flip or assign your contract, so be aware of the terms before you complete your 10 day cool off period.
Selling via assignment is not as easy as selling a resale property. Developers put strict restrictions on what you can sell, before your condo is complete and they hold the unilateral right to prohibit you from selling. Normal restrictions on selling your new construction condo might include NOT being allowed to advertise it on Realtor.ca or any website, that the building has to be 90-95% sold out (because the developer doesn’t want to compete with you, if they still have units left to sell), that you’ve provided all of your deposit payments and that you can’t sell during the 60-90 days before registration. Understanding the challenges of selling via assignment is paramount if this is what you are hoping to do when you buy a new construction condo.
Having a thorough understanding of the ability to assign your condo, during your 10 day cool off period (after signing), will ensure you’re aware of the restrictions and permissions on selling/flipping prior to completion.