Presale Assignments in BC: Fees, Taxes and Developer Consent Explained

Sometimes a presale buyer needs out before completion — a job move, a rate shock, a change of plans. That exit is called an assignment: you sell your contract, not the home. In Metro Vancouver it is an active market with its own rulebook — developer consent, assignment fees and a stack of taxes that catch people off guard. Here is how it works.

What you are actually selling

An assignment transfers your rights under the presale contract. The new buyer steps into your shoes and completes with the developer at the original contract price and terms. The difference between what you paid/committed and what the new buyer pays you — your profit or your discount — is settled between you two, separately from the developer paperwork.

Gate one: developer consent and the assignment fee

• Under BC’s Real Estate Development Marketing Act, a presale contract can only be assigned with the developer’s written consent. Consent cannot be unreasonably withheld, but the process is mandatory.
• Most contracts set an assignment fee — a flat amount or a percentage of the price, exactly as written in your contract. (This is a clause worth reading before you buy any presale, not just before you assign one.)
• Some projects also restrict how an assignment may be marketed (for example, no public MLS exposure) — check the assignment clause line by line before doing anything else.

The tax stack: three traps

• GST on the assignment: since May 2022, every assignment sale of a new home is subject to GST on the assignment consideration — federal rule, no exceptions based on whether you “intended” to live there.
• Income tax: assignment profits are generally taxed as business income in full, not as a capital gain — the CRA’s position on presale flips is explicit. Run your numbers with an accountant before you set a price.
• At completion: the assignee pays the closing taxes on the home itself (PTT, plus GST on the new home, subject to their own eligibility for the newly built home exemption and the first-time buyers’ GST rebate — see our first-time buyer programs guide). BC’s home flipping tax can also affect short holding periods — confirm before signing.

Process notes for both sides

• Sellers (assignors): confirm the contract permits assignment and at what fee → obtain developer consent → write the assignment agreement carefully: price difference, deposit credits, and who bears the risk if the project is delayed or cancelled.
• Buyers (assignees): you are doing contract due diligence, not home shopping — original price, completion window, the developer’s delay rights, finishings, who pays the assignment fee. And re-confirm your financing against the actual completion date, not the brochure date.
• Both sides: build in time for the developer’s consent process; do not set a hard completion for the assignment itself.

Where assignment opportunities live

Many assignments never reach public listings. Our pre-sale section tracks projects, prices and developers — and for sold-out projects such as Debut at Fraser Mills we actively register assignment interest on both sides. Tell us what you hold or what you want, and matches come to you first.

I’m Jack Zhu, a RE/MAX Select Properties realtor focused on Vancouver’s West Side. Holding a presale you may need to assign — or hunting for one? Call 604-889-1640 and we’ll price the taxes and fees before we price the deal.

General information only, not tax or legal advice. Assignment rights and fees are governed by your purchase contract and the developer’s current policy; confirm with your lawyer and accountant before transacting.