Equal Housing Opportunity
6 Tips to Consider When Buying New Condos on Assignment Sales
An assignment sale is the sale of an agreement to buy a pre-construction condominium. Typically, it means the building hasn’t been registered yet, so nobody can take the unit’s ownership. Once the building’s registration takes place, you can sell the property and transfer the title ownership.
The contract’s assignment clause comes in handy when you’ve purchased Eighty Seven Park pre-construction but need to sell it before the construction’s completion because of reasons such as relocation. Here’s a list of tips to consider when buying Eighty-Seven Park condominiums on sale.
1) The Closing Date
When buying Eighty-Seven Park Miami you must consider these dates:
Closing date of assignment
When the transaction of the assignment sale is complete
Closing date for occupancy
The initial closing date when the buyer obtains the condo’s key from the builder
Final closing date
This is when the property’s title transfers to the buyer’s name
2) Builder’s Consent is necessary
The builder’s approval is necessary to complete the assignment sales transaction. In some cases, they might disagree if the assignment sale’s date is near the final closing date. That’s because the builder would want to ensure confusions don’t arise when it comes to the final name on the agreement.
3) Consider the Condo’s Rules
Ensure the condo’s rules suit your lifestyle. This means understanding how condos work. Don’t depend on a real estate agent or lawyer to inform you of this. Make sure you read the corporation’s declaration and status certificate yourself. Policies banning pets, or pets bigger than a particular size, catch numerous owners by surprise. As such, the condo’s community, not merely the unit itself must be a good match.
4) The status certificate
Don’t be deceived by a status certificate that indicates that the unit lacks arrears. You can only guarantee the certificate when it’s prepared. Most certificates indicate that charges are covered except for those that the bank doesn’t honor. We recommend you confirm with the condominium corporation whether any returned cheques occurred after the write up of the certificate.
5) Financial Status of the condominium corporation
Make sure the condominium corporation is in a healthy monetary position. A reserve fund of 1 million dollars doesn’t guarantee it’s healthy, especially if necessary repairs cost 1 ½ million dollars. Inquire from the corporation if they have planned any major assessments or repairs such as lobby renovations. It’s also imperative you inquire whether the condominium corporation is presently involved in any lawsuits.
6) Mortgage Approval
For the builder to support the transaction, you should offer evidence of adequate funds to signify that you can afford the purchase of Eighty-Seven Park condominiums.
Benefits of Buying Condos on Assignment Sales
Higher Negotiating Power
The sale or purchase of condo assignments can take place at any stage before registration. Therefore, even a condo that’s ready for move-in has some elements that require finishing. There’s a chance that some of the amenities won’t operate properly, mutual spaces will be unfinished, and elevators might be grounded. As a buyer, these become great factors when it comes to price negotiation.
Purchasers have the upper hand
After construction, it isn’t unusual for misguided investors to sell before they assume possession. This produces a massive inventory. This implies that buyers have more options when the building is still being worked on.
Moreover, investors are driven to negotiate since they want out of their contract before the registration date of the condominium, particularly if lots of inventory exists. The inventory surge gives purchasers an upper hand, reducing the offer process and saving you money.
Equity
One of the reasons why purchasing a pre-construction condominium is appealing is the capacity to build equity during the condo’s construction. When somebody sells a unit before closing, they typically leave some of the equity the condominium has earned on the table for you.
Purchase a new condominium for less
As a buyer, you can buy a product that’s usually sold-out for a cost that’s probably no longer available. Ideally, the cost per square foot should be less than today’s pre-construction costs. You’ll not only secure a new condominium but obtain it for a cost that doesn’t exist in today’s market.
Whether you’re the seller or buyer, it’s imperative you collaborate with an experienced lawyer and realtor who will protect your interests.