A presale assignment on pre construction projects is when the original purchaser wants to sell their unit before completion. It is called an assignment because the original purchaser, the assignor, is assigning their rights to the new owner, the assignee.
How this works is that the assignee has to pay the assignor the deposit amount, generally 20% of the original purchase price as well as the lift amount. The lift amount is the increase in value of the unit. For example, if it was originally purchased for $500,000 and the original purchaser wants to sell for $600,000, the lift amount will be $100,000. A total of $200, 000 has to be paid upfront by the assignee, $100,000 of the lift and $100,000 deposit amount (20% of $500,000).
Generally, this can get complicated as not all developers will allow public advertising/marketing for assignment contracts which also includes listing it on MLS. At Ohm, we are here to help you navigate through the complexities of contract assignments to ensure that the process is smooth and gets done correctly.