Cost- In segments where prices have softened since 2021-2022, some pre-construction buyers assigning their contracts are facing a loss rather than the profit assignment sales are usually discussed around.
- This changes the practical dynamics of an assignment transaction — a motivated-to-sell assignor may accept less than their deposits paid, effectively eating a loss to exit the contract.
- For buyers, this can create genuine opportunities to acquire a pre-construction unit below its original contract price, though the same due-diligence steps covered in our assignment guides still fully apply.
How a falling market flips the usual assumption
Our assignment sales guide and HST trap guide largely discuss assignments assuming the assignor is selling at a profit over their original contract price — a reasonable assumption during a rising market. In a segment where resale values have fallen below original pre-construction contract prices, some assignors are instead facing a real loss on the transaction.
What it means for the person assigning
An assignor in this position may need to accept less than their deposits paid just to exit the contract before final closing, rather than realizing the profit assignments are usually discussed around — a genuinely difficult position, especially if they can't otherwise afford to close on the unit themselves at the original contract price.
What it means for a buyer considering an assignment purchase
This dynamic can create real opportunities for buyers to acquire a pre-construction unit below its original builder contract price, since a motivated assignor may price well below what the unit would otherwise be worth. The same due-diligence steps covered in our assignment guides — confirming the builder allows assignment, checking closing timelines, and understanding the HST treatment — still fully apply regardless of whether the specific deal represents a profit or a loss for the assignor.
Model the full cost against current market value using the closing cost calculator.
- Canadian Real Estate Association (CREA) — accessed September 2026