Pre-construction assignment sales in Ontario: how they work
By Dinesh Jindal, licensed REALTOR® · Reviewed November 2026
An assignment lets you sell your pre-construction contract before the home is finished.
For sellers (assignors)
- Read the assignment clause: consent, fees and whether you may advertise publicly.
- Fees: builders often charge a flat fee or a percentage, plus legal fees.
- Your deposit: the buyer pays you back your deposit plus any profit; the builder keeps the deposit already paid.
- Tax: the property flipping rule and HST can apply. Speak to an accountant.
For buyers (assignees)
- You take over the original price and the remaining deposit schedule.
- Confirm the builder's written consent and the closing date.
- Check the original buyer's upgrades, extras and adjustments.
- You will need a mortgage at closing, like any buyer.
Before you sign any pre-construction deal
If you might need to sell before closing, choose a project whose agreement allows assignments on fair terms. Free or reduced assignment fees are a common launch incentive.
Dinesh handles assignment listings and purchases. Book a call
Quick answers
What is an assignment sale?
The original buyer transfers their rights under the builder's agreement to a new buyer before closing. The new buyer closes with the builder in their place.
Do builders allow assignments?
Most allow them with written consent and a fee, but many restrict them until the project is sold out, or ban public listing. The rules are in the assignment clause of your agreement.
How is assignment profit taxed?
Profit on a home owned less than 365 days is generally taxed as business income under the federal property flipping rule, and HST can apply to the assignment. Get tax advice before you list.
General information, not legal, tax or financial advice. Programs, limits and rebates change; confirm current rules with Dinesh Jindal, your real estate lawyer and your mortgage professional before you sign.