A-I |
J-R |
S-Z
Agreement of Purcase and Sales (APS)
Assignee
Assignment
Assignment Consent
Assignment Fee
Assignment Listing Service (ALS)
Assignor
Closing Cost
Closing Date
Condominium Act
Deposit
Developer
Final Closing
Interim Closing
Interim Occupancy
Interim Occupancy Fee
Interim Statement of Adjustments
Agreement of Purchase And Sales (APS)
This is the Original Agreement between the developer and the Original Purchaser
of the unit. It outlines the obligations and rights of the Purchaser. It includes
such things as Original Purchase Price, Initial Deposit paid, Purchase date, if
Parking and Locker is included, Original Purchase Date. It also includes the terms
of Final Closing, Interim Occupancy and Assignment Sales and will have the Builder's
Plan attached in the package. This document is signed by the Original Purchaser
and the Developer.
Back to Top
Assignee
The Buyer/Third Party or Sub Purchaser of the unit in an Assignment Sale.
The "Assignee" will assume all of the "Assignor's" duties and obligations under
the original Purchase & Sale Agreement. These rights and obligations are stated
in the original Purchase & Sale Agreement and include terms such as payments of
mortgage, taxes and maintenance fees during interim occupancy. Upon Completion,
the "Assignee" is granted the Title to the real property and will incur all final
closing costs.
Back to Top
Assignment
An Assignment is a legal sales transaction whereby the Original Purchaser
(the "Assignor") of a property sells, and thereby transfers, their interest and
obligations under the original contract to a new Purchaser (the "Assignee"). This
assignment takes place during interim occupancy. An Assignment is legally permitted
unless otherwise expressed in writing. An Assignment fee may be charged by the Developer
and is normally a cost borne by the "Assignor" (the Original Purchaser).
Back to Top
Assignment Consent
Permission given by the Developer/ Vendor to the Original Purchaser "Assignor",
allowing them to transfer their property rights during Interim Occupancy and before
Final Closing to a New Purchaser "Assignee". This Consent must be expressed in writing
and can be unreasonably or arbitrarily withheld by the vendor.
Back to Top
Assignment Fee
This fee is a cost borne by the Assignor. It is the fee that the Developer/
Vendor will charge for Assignment Consent. On average this ranges from $2500-$5000
per Assignment Sale.
Back to Top
Assignment Listing Service (ALS)
A real estate marketing tool whereby users can search for condominium assignment
availabilities housed under AssignIt.ca.
Back to Top
Assignor
The Original Purchaser of the unit. The Assignor/Seller transfers his/her
rights and obligations to the property to the New Purchaser "Assignee".
Back to Top
Closing Cost
Closing costs will vary, but the main expenses will include GST, Land Transfer
Tax, Education Levies and other expenses added by the Vendor. These costs can add
up to about $10,000 to $18,000 on average and are paid on the Final Closing Date.
In an Assignment Sale, these expenses are borne by the Assignee/ New Purchaser and
may be reduced substantially if the assignee is going to occupy (no gst) and if
they are a first time buyer (land transfer tax) and if they bought a unit that was
originally purchased prior to Feb 1 2008 (city transfer tax).
Back to Top
Closing Date
It is the official date that the Assignor legally transfers his/her Property
Rights and Obligations to the Assignee. This date is negotiable in the Assignment.
Back to Top
Condominium Act
Revised in 1998, the act provides strong protection for buyers by setting
out information to be provided when they buy a unit. It makes sure owners have a
say in the way the condominium corporation is run.
Back to Top
Deposit
It is considered the down payment in the Assignment Transaction. This amount
is negotiable by the Assignor and Assignee and is paid by the Assignee to the Assignor.
It is usually negotiated to be around the same amount as the Initial Deposit, which
was paid by the Assignor to the Vendor during the Original Purchase and Sale of
the unit.
Back to Top
Developer
Also known as the Vendor or Builder. The Developer is the primary owner of
all the condominium units until final closing. The Developer is the party that sells
the unit to the Original Purchaser and subsequently gives the Consent in an Assignment
Sale.
Back to Top
Final Closing
Refers to the date soon after the Condominium is registered with the city
as a Condominium Corporation. Owners are notified by their lawyers of the official
date usually by mail. On Final Closing, the owner of a property is required to arrange
financing to pay the balance owed to the Vendor on this day. In addition, the owner
will have to pay closing expenses that may include GST, Land Transfer Taxes and
Education Levies by this date. In an Assignment transaction these costs are borne
by the Assignee since they are the new owners of the unit. The assignor does not
have to worry about Final Closing costs. Instead they will collect the profit of
their assignment sale on this date.
Back to Top
Interim Closing
Refers to the start of Interim Occupancy or the date that the owner may legally
occupy the unit even before registration with the city.
Back to Top
Interim Occupancy
Refers to the period that an owner can occupy a unit before registration
or Final Closing.
Back to Top
Interim Occupancy Fee
Paid by the purchaser. It is a monthly expense paid to the Developer. Prior
to Interim Occupancy the Developer will request post-dated cheques from the owner
of the unit to cover these monthly fees which include mortgage (without interest),
taxes and maintenance fees.
Back to Top
Interim Statement of Adjustments
Document of monthly Interim Occupancy Fees. In this Statement of Adjustments,
the Developer outlines specifically any price differences in costs to maintain the
condominium than previously estimated. It will also outline the cost of any parking
spaces or lockers purchased after the Initial Purchase and Sale of the unit.
Back to Top
Land Transfer Tax
Market Value
Multiple Listing Service (MLS)
New Home Site
New Purchase Price
Pre-Sale
Resale
Land Transfer Tax
In general, if you buy land or an interest in land in Ontario, you must pay
Ontario's land transfer tax. Land includes any buildings and buildings to be constructed.
Back to Top
Market Value
Generally speaking, it refers to the price a purchaser is willing to pay
and what a seller is willing to sell for.
Back to Top
Multiple Listing Service (MLS)
Refers to a web site service that acts as an advertising vehicle. It is provided
for REALTORS® across Canada to help market properties.
Back to Top
New Home Site
Refers to the location of a Developer's new construction project.
Back to Top
New Purchase Price
Refers to the Assignment Sale price that the Assignee/Buyer pays for the
rights to a new unit.
Back to Top
Pre-Sale
Sale of proposed properties, such as Condominiums before construction begins.
Back to Top
Resale
Sale of registered Condominium units on the open market. Resale Condominiums
can only be sold after Final Closing.
Back to Top
Vendor
Vendor's Balance Cheque
Vendor
Refers to the Developer/Builder.
Back to Top
Vendor's Balance Cheque
A cheque issued, to be paid after the Closing Date of an Assignment Sale.
It is the deposit amount owed to the Assignor.
Back to Top