Jun 20, 2022
For the “Assignee” when you purchase an assignment you take on all the terms and conditions of the original Agreement of Purchase and Sale (APS). Thus, if the original Buyer did not get their Lawyer to review the agreement to make sure things such as levies were capped then those risks are passed on to you. Assignee can protect himself/herself by making sure the Assignment agreement has a clause that put conditional offer pending on the Lawyer reviewing the original APS.
For “Assignor” risks include responsibility for any assignment fees charge by the Builder. In the event that Assignee (Buyer) can’t close the transaction then Builder may request that Assignor closes as per the terms of the original APS.
Builder will also stop communicating with Assignor and deal exclusively with Assignee once they have agreed to and executed assignment agreement (Builder's Consent). This makes it difficult for Assignor to get important updates. It’s therefore important that Assignor Lawyer keeps in touch with both the Builder and Assignee Lawyer until Final Closing.