Assignment of Contract

An assignment of contract is the transfer of a buyer's rights and obligations under an unfulfilled purchase agreement—most commonly a presale contract for new construction—to a third party (the assignee) before the property's completion date. The original buyer (assignor) exits the contract, and the assignee steps into their position, subject to the original contract terms and any developer consent requirements. This is governed by the original presale agreement and general BC contract law. Verify the specific terms of any assignment with a BC lawyer or notary before proceeding.

Most presale contracts in BC include a clause requiring the developer's prior written consent before the buyer can assign the contract to a third party. Whether consent is required, and any associated fees or conditions, depends entirely on the terms of your original purchase agreement. Review your contract and consult a BC lawyer or notary to confirm the assignment process and any developer consent requirements.

An assignment of a presale contract does not typically trigger a separate PTT liability for the assignee at the time of assignment; PTT is assessed when the property eventually completes and legal title is transferred, based on the fair market value at that time under the Property Transfer Tax Act, RSBC 1996, c. 378. However, the assignment payment itself may be included in the calculation of the taxable consideration. Verify current PTT treatment of assignment transactions with a BC lawyer, notary, or the BC Ministry of Finance before acting.

Yes. The Residential Property (Short-Term Holding) Profit Tax Act, SBC 2024, c. 19 (commonly called the BC Home Flipping Tax), applies to taxable profits on the disposition of a BC residential property (or a contract to purchase such property) held for fewer than 730 days (as of 2026-07-27 — verify current), effective January 1, 2025 (as of 2026-07-27 — verify current). An assignment of a presale contract within that holding period may be subject to this tax. Verify eligibility, exemptions, and current holding-period rules with a BC lawyer, notary, or licensed tax professional.

Yes. Under the Income Tax Act, s. 12(12)–(14), profits from the sale (including assignment) of a residential property or a contract to purchase residential property held for less than 365 days (as of 2026-07-27 — verify current) are deemed business income, not capital gains, subject to certain exceptions. This federal rule applies in BC as across Canada. Verify current holding-period thresholds, exemptions, and tax treatment with a licensed tax professional before acting.

In most cases, yes. Canada Revenue Agency's GST/HST Memorandum 19-2-1 treats the assignment of a presale residential real estate contract as a taxable supply for GST purposes, meaning the assignor must generally collect and remit GST (5% as of 2026-07-27 — verify current) on the assignment profit or fee. Exceptions and specific application depend on the facts. Verify GST obligations for your assignment transaction with a licensed tax professional or CRA before acting.

A real estate licensee may act for both parties in an assignment transaction only if both the assignor and assignee provide informed written consent to limited dual agency, as required under the Real Estate Services Act (RESA), SBC 2004, c. 42, and the BCFSA Rules (British Columbia Financial Services Authority rules). The licensee must disclose all material conflicts and obtain this consent before proceeding. Verify current dual-agency disclosure and consent requirements with a BC lawyer, notary, or the BCFSA.

An assignment of a presale contract does not typically require registration at the BC Land Title Office under the Land Title Act, RSBC 1996, c. 250, because no legal title has yet transferred; the assignment is an equitable interest transfer. The final transfer of legal title (when the property completes) is registered. Verify whether any notice or registration is required under your specific presale contract or by the developer with a BC lawyer or notary.

Yes, but only for unfulfilled contracts (typically presale contracts) before the strata title is registered and the property completes. Once a strata lot has been conveyed and registered under the Strata Property Act, SBC 1998, c. 43, a subsequent sale is a standard resale, not an assignment. Assignment rights and restrictions for presale strata units are governed by the original purchase agreement. Verify the terms of your presale contract and any developer or strata-corporation requirements with a BC lawyer or notary.

While not legally required in all cases, it is strongly recommended to retain a BC lawyer or notary public to review the original presale contract, draft or review the assignment agreement, ensure compliance with all disclosure and consent requirements, and assess tax implications under provincial and federal law. Assignment transactions involve multiple legal and tax considerations that require professional advice. Verify the specific requirements and risks of your transaction with a BC lawyer or notary before proceeding.