Canada Revenue Agency - Pre- Construction Assignments
An assignment means that one is purchasing the 'right' to own a condominium not yet in the Land Registry System. Typically the condo has not been built yet or is not ready for you to move in and the building hasn't been registered. In actual fact the 'right ' is just a paper agreement and not the transfer of the property. The Assginment closes before the condo is registered. After purchasing the 'right', the buyer will at some point in time close and register their ownership of the condominium at a later date.
Assignments have increased with heightened condo sales. With increased sales CRA auditors seem to be targeting the Toronto and Vancouver Real Estate markets in search of buyers who purchased condos before they were built, possibly with the intention of flipping the unit for profit when the project is done.