Short answer
Only if the agreement and builder permit it, and usually subject to consent, fees, conditions and tax consequences. An assignment is not a guaranteed exit from a purchase you can no longer close. Have a lawyer and accountant review the contract and tax position before marketing or signing anything.
Why this becomes stressful
A buyer’s job, family plan or financing changes years after signing. The buyer remembers being told that the contract could be sold, but the agreement may restrict assignment, prohibit advertising, require builder approval or leave the original buyer liable if the assignee fails.
A practical Ontario example
Illustration only: A buyer cannot qualify at final values and wants to assign. The agreement permits assignment only with written builder consent and a fee, while the deposit and profit timing affect the cash result. Rajiv compares the closing shortfall against the assignment outcome; the lawyer and accountant address liability, contract wording and taxes.
What to do now
Confirm permission, advertising rules, consent process, builder fee, original-purchaser liability, deposit repayment, closing obligations and tax consequences. Do not advertise or accept money until the lawyer confirms the permitted process.
Keep the four decisions separate
- Builder contract: what the signed agreement permits, requires or charges.
- Legal position: rights, notices, liability and closing consequences explained by the lawyer.
- Mortgage approval: what a specific lender will accept based on current income, credit, property and value.
- Tax treatment: HST, rebate, assignment or rental consequences confirmed by an accountant or tax lawyer.
Questions Rajiv would ask first
- What did you sign, and what are the current occupancy and final closing dates?
- How much deposit has been paid and how much cash remains available?
- Will you occupy, rent, assign or sell the property?
- Has your income, employment, credit, debt or ownership changed?
- What value has the lender or appraiser supported?
- Which decision or deadline can no longer wait?
Practical routes to compare
- Request builder consent where the agreement allows it.
- Compare an assignment with finding funds to complete the original purchase.
- Explore an A, alternative, MIC or private closing solution based on qualification and a credible exit.
- Negotiate with the builder through legal counsel where a contractual solution may exist.
Where A, alternative, MIC and private lending fit
An A lender is usually the first route when income, credit, debt ratios, property and appraisal fit its current policy. Alternative lenders may take a broader view of income and property but charge more. A MIC is an institutional mortgage lender that may offer flexible short-term, interest-only, amortized, open, partially open or maturity-matched structures. A private lender may also bridge a closing problem. Neither short-term route fixes the underlying issue by itself; compare total cost, legal fees, renewal risk and the written exit back to A or alternative lending.
Facts, lender policy and professional judgment
Verified public guidance: RECO warns that pre-construction transactions require careful review of the agreement and future obligations. Whether assignment is permitted is a contract issue; tax treatment and legal liability require qualified advice.
Lender policy: qualification, appraisal use, rate holds, project acceptance and permitted funding structures vary by lender and can change. Legal and tax advice: the lawyer and accountant decide how the agreement and tax rules apply. Professional judgment: Rajiv can compare mortgage paths, but approval exists only when the lender has accepted the full current file and all conditions are satisfied.
What could make the plan fail?
A later appraisal, expired documents, new debt, job change, unexplained funds, builder notice, contract restriction, tax amount, property issue or lender policy can change the answer. Keep a second route and enough time for legal and mortgage work. Do not wait until the final funding date to discover that the first assumption no longer works.
Documents to gather
- Agreement of purchase and sale, disclosure statement and every amendment
- Statement of critical dates and builder notices
- Deposit receipts and 90-day source-of-funds history
- Current income, employment, credit and debt information
- Appraisal or valuation details, if available
- Lawyer’s estimate of adjustments, taxes and closing funds
Related AskRajiv guidance
Continue with pre construction appraisal shortfall closing options, low appraisal builder condo financing deadline.
Get a closing-risk strategy review
If the project date, appraisal, income or cash requirement has changed, use Rajiv’s direct mortgage strategy contact form. Include the project, deadline and the issue causing concern so the first discussion starts with the real problem.
Need a lawyer, inspector, appraiser or accountant?
Use Rajiv’s Professional Referral Concierge. Share the area, property type, deadline and service needed for a relevant introduction.
Source and review
Read the primary source. Source checked 2026-09-03. Reviewed by Rajiv Verma, Mortgage Broker on 2026-09-03. Educational information only; not legal, tax, appraisal, real-estate or mortgage approval advice.