What is an assignment?   In terms of real estate, an assignment is a transaction in which the original purchaser of a property, the assignor, allows another purchaser, the assignee or assignee, to take responsibility Of the rights of the Agreement of Purchase and Sale before the original purchaser closes the process. Therefore, the assignee is the one who ends the process with the seller.   In other words, it is a clause that allows the buyer to sell the property before taking possession of it.   In Ontario, assignments are more common in condominiums or flat properties than in resale transactions.   Are the assignments legal and when do they occur?   When made professionally, assignments are legal and can serve as a useful tool for buyers and sellers. An example of this is when the financial or personal situation of a buyer changes before the closing day. An assignment allows you to transfer the contract to another buyer without giving up the commitment to the seller.   It happens a lot with flat properties that take a couple of years to finalize its construction. The original purchaser may lose his job or suffer a family emergency, causing him to change his mind about the purchase he had made. Another case is that the buyer loses financial stability and prefers to withdraw from the purchase before incurring any penalties that may come with canceling an agreement.   What are the legal obligations of real estate agents regarding assignments in Ontario?   Ontario agents are responsible for declaring any personal interest in any purchase or sale transaction. There are also rules in case it is the same firm that represents the original buyer and seller and then that buyer offers the property to another interested party. In this case, the original seller must be informed of the pros and cons of this process and will have the power to decide whether or not to include a cession clause in the Purchase and Sale Agreement.   Taxes and assignments   Generally, the assignors expect to pay the tax on the benefits they obtained from the assignment. As far as land transfer taxes are concerned, they are paid by the transferee once the sale is closed, that is, when the property actually changes ownership.   It is very important to have the advice of a professional and knowledgeable real estate agent, who can answer all your questions and ensure a legal and transparent process.   Do not hesitate to contact me if you have any questions or if you need to transfer your property to another buyer.