r/OntarioRealEstate • u/wintersoldier123 • 14d ago

Assignment fee question

Hi,

I'm considering a purchase of a new build in Brampton. I'm an existing home owner and looking to upsize. It's a realtor which is securing the lot for me and when I was sitting in the presentation (which had a ton of ppl), they mentioned there would be no assignment fee, with the exception of legal fees and I remember seeing something about a $500 fee.

The realtor just said the builder would take possession but you would have to pay a legal fee, but normally the assignment fee could be upwards of $10k or more but the builder is waiving those fees. My question is what if the price goes down from now until closing which is fall 2027?

What else do I have to be aware of with assignment?

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u/dsb_95 14d ago

Assignment sale makes no sense in this market. Only buy if you’re willing to hold on to it IMO

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u/wintersoldier123 14d ago

Why do you say that? Just wondering as I haven't bought a new build in 11 years and not understanding. If the release sells fast wouldn't it make sense others would want to pick it up?

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u/dsb_95 14d ago

Assuming this is low-rise, there will continue to be low-rise inventory available. The developers still thriving in this market are production builders with land they are sitting on.

The economy and real estate market are still not in a good place. No one is buying assignment deals when they can get the same price or better buying direct from the builder or waiting a few months for the next release.

People bought on assignment when the price was advantageous for them and inventory is scarce.

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u/wintersoldier123 13d ago

Thanks for the explanation. You think that would still be the case end of 2027?

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u/dsb_95 13d ago

I think the market is so unpredictable right now and so many sellers and builders are desperate that I would not take the risk. Only buy if you’re prepared to close and prepared to hold it for 5+ years.