Pre-construction guide
Assignment sales
Selling your contract before closing: builder consent, fees and taxes.
How assignments work
An assignment transfers your agreement with the builder to a new buyer before closing. The buyer reimburses your deposits and pays any profit to you, and takes over the agreement.
Builder consent and fees
Most agreements require the builder’s consent and charge an assignment fee. Many restrict advertising the unit publicly, including on MLS®, before a certain stage. Read the assignment clause before you buy if you might need to sell early.
Taxes
Profit on an assignment is generally taxable, and assignments of new homes are subject to HST. Profits on homes held less than 12 months can be taxed as business income under the federal flipping rules. Speak with an accountant before you assign.
General information only, reviewed October 2026. Confirm the details for your purchase with your lawyer.