Selling your presale contract, or buying someone else's? The developer's consent and fee, the GST, the taxes on any profit, and how the deal actually closes — in plain English, with Tri-Cities examples.
In brief
A presale assignment is selling your contract to buy a new home — not the home itself — to another buyer before the building completes. In BC it needs the developer's written consent and usually a fee, GST applies to the assignment amount, the buyer pays property transfer tax on the total they pay, and any profit is taxed as income under the federal and BC flipping rules.
Many Tri-Cities presale units bought at the 2021–2022 peak are now completing into a softer market, so assignments are trading on both sides of the original price — a few at a premium, many at a discount. Whether you hold a contract you would rather not complete, or you are shopping for a unit in a tower that is nearly finished, the mechanics are the same, and the tax rules changed in 2022, 2023 and 2025. Here is how it works.
94–99%
Tri-Cities Market Sale-to-List
97%
Sebastian's Avg Sale-to-List
41
Sebastian's Avg Days on Market
Current Tri-Cities sale-to-list and Sebastian's recent results. An assignment buyer compares the total they will pay against what a finished unit sells for today, not against what you paid the developer in 2022.
You are not selling a home — there isn't one yet. You are selling your rights and obligations under the purchase agreement with the developer. The new buyer (the assignee) steps into your shoes: they complete with the developer at the original contract price, on the original completion date, under the original disclosure statement. Three parties are involved — you (the assignor), the assignee, and the developer, who must consent.
Assignments are common in the Tri-Cities because the towers around Burquitlam, Coquitlam Centre and Moody Centre are sold years before they finish. Someone whose plans changed between signing and completion sells the contract; someone who wants a nearly finished unit at a known price buys it. Since January 1, 2019 every assignment of a residential strata lot in BC is reported to the province's Condo and Strata Assignment Integrity Register (CSAIR), so the deal is visible to the Canada Revenue Agency and BC tax authorities from day one.
Only with the developer's written consent. BC's Real Estate Development Marketing Act requires every presale contract to contain a term prohibiting assignment without it, and the developer cannot consent until both parties have supplied the CSAIR information — legal names, dates of birth, SIN, citizenship, tax residency, and the assignment amounts. Read your contract's assignment clause before you do anything else; it governs everything that follows.
Fees vary by developer: commonly a flat amount or 1–3% of the original price, sometimes more. Many contracts also restrict how you can market — typically no MLS® listing or public advertising until the developer has sold a set share of the building, or until it is sold out. That is why most assignments are marketed quietly through agents and developer lists, and why the buyer pool is smaller than for a completed resale.
An assignment price has three layers. The original contract price, which the assignee still pays the developer at completion. The deposit reimbursement — the assignee pays you back the deposit (usually 15–20%) you have already paid in. And the assignment amount, often called the lift: a premium above your contract price if the market has risen, or a discount below it if the market has fallen.
In 2026 the lift is often negative. Units bought at the 2021–2022 peak in Metro Vancouver have been assigning 15–25% below their original contract price in some projects, which means the assignor gets back less than the deposit they paid in. The honest way to price is against today's resale value of a comparable finished unit in the same building or neighbourhood — the live numbers above — less a discount for the buyer's cash requirement and the limits on marketing.
Since May 7, 2022, every assignment of a new home or condo contract in Canada is a taxable sale for GST, regardless of why you bought. The assignor collects 5% GST on the assignment amount and remits it to the CRA. The portion that reimburses your deposit is excluded — but only if the assignment agreement states in writing that part of the price is a deposit reimbursement. Leave that line out and GST is charged on the whole amount.
The assignee also pays GST to the developer on the original contract price at completion, exactly as the original buyer would have. If they will live in the unit and it qualifies, they can claim the GST New Housing Rebate on the total tax paid; the rebate cannot be split into two claims. Run the numbers on the GST rebate calculator. Note that the newer first-time buyer GST rebate, for contracts signed with a builder on or after March 20, 2025, has not been confirmed by the CRA to extend to assignees — ask your accountant before counting on it.
The assignee pays BC property transfer tax at completion on the total they paid to acquire the unit — the original contract price plus any assignment amount and upgrades — not just the developer's price. The rates are the usual ones: 1% on the first $200,000, 2% up to $2 million, 3% above that, and a further 2% on residential value above $3 million.
Two exemptions can still apply, because the unit is registered for the first time at completion. The newly built home exemption covers a fair market value up to $1.1 million, phasing out to $1.15 million. The first-time home buyer exemption is full up to $500,000, a fixed $8,000 from $500,001 to $835,000, and gone above $860,000. The PTT calculator handles both.
As business income, almost always. Under the federal residential property flipping rule, in force since January 1, 2023, a right to buy a home that you held for less than 365 days is a flipped property: the whole profit is taxed as ordinary income, with no 50% capital gains inclusion and no principal residence exemption. The CRA states that this applies to assignment sales explicitly.
BC adds its own layer. The BC home flipping tax, in force since January 1, 2025, applies to profit on a presale contract at 20% if you held it under 365 days, sliding to 0% at 730 days, counted from the day you signed and paid the deposit. That start date carries forward if you complete and sell the finished unit later. Life-event exemptions exist — death, divorce, job relocation, serious illness, insolvency and others — but the $20,000 primary-residence deduction is not available on an assignment, and a return must be filed even when an exemption applies. If you assign at a loss there is no profit to tax; ask your accountant whether a BC return is still required.
Step one: you and the assignee sign an assignment agreement — have a real estate lawyer draft or review it — and the assignee pays the deposit reimbursement plus any premium, in cash, usually within a few weeks. Step two: the developer reviews the CSAIR information from both sides, collects its fee, and gives written consent. Step three: at completion the assignee pays the developer the balance of the original contract price plus GST, pays PTT, and title registers in the assignee's name for the first time.
The cash requirement is the part that surprises assignment buyers. Lenders often mortgage the original contract price or the current appraised value rather than the total including the lift, so the deposit reimbursement and any premium generally have to come from savings. And there is no cooling-off period: the seven-day rescission right under REDMA belongs to the purchase from the developer, not to an assignment, and the three-business-day Home Buyer Rescission Period is generally understood not to apply either. Once you sign, you are in.
Work through these before you sign — an assignment is a binding contract with no rescission period.
Can I list my presale assignment on MLS®?
Only if the developer's contract allows public marketing. Many Metro Vancouver developers prohibit MLS® listings and advertising until the building is largely or fully sold, so assignments are usually marketed privately through agents. Check your assignment clause first — breaching it can cost you the developer's consent.
Do I pay GST if I assign at a loss?
GST applies to the assignment amount, so if there is no premium there is little or no GST to collect. The deposit reimbursement is excluded only if the assignment agreement says so in writing. Have your accountant confirm how a negative assignment should be documented.
Is the profit on an assignment a capital gain?
Almost never. Under the federal flipping rule in force since 2023, a purchase right held under 365 days is business income, fully taxable. Even beyond 365 days the CRA generally treats assignment profit as business income because the intent was resale, and BC's home flipping tax may apply on top for the first two years.
Who pays the developer's assignment fee?
Whoever the assignment agreement says — it is negotiable. In today's buyer's market the assignor usually absorbs it; when the market was rising it was often passed on to the assignee.
Does the assignee get the newly built home PTT exemption?
Often, yes. The unit registers for the first time at completion, so the newly built home exemption (fair market value up to $1.1 million) and the first-time home buyer exemption can apply if the assignee qualifies — calculated on the total paid, including the lift.
Can I back out of an assignment after signing?
Generally no. The seven-day rescission right under REDMA applies to the purchase from the developer, not to an assignment, and the three-business-day Home Buyer Rescission Period is generally understood not to apply to assignments. Get legal advice before signing, not after.
What is CSAIR and why does it need my SIN?
The Condo and Strata Assignment Integrity Register, run by the Land Title and Survey Authority since January 2019. Developers must collect both parties' identity and tax information and the assignment amounts before consenting, and the data is shared with the CRA and BC tax authorities. It exists to make sure assignment profits are taxed.
Should I assign, or complete and then sell?
Compare total cash out the door under each path: assign now at today's lift and pay the fee and GST, or complete, pay GST, PTT and closing costs, then sell into the full resale buyer pool. If you cannot complete at all, see the guide to being stuck in a presale you can't complete.
I'll price your contract against today's resale market, show what you'd actually net after the fee and tax, and market it within the developer's rules. Buyers: I'll help you check the contract before you commit. Free, no obligation.
Talk to Sebastian → Or call Sebastian directly: (604) 788-4355Walk away, assign, negotiate or close — the financial reality of each.
Read moreGST and the new housing rebate on a presale or assignment purchase.
Open calculatorBuyer-side guide to Moody Centre and Port Moody presales, benchmarked to resale.
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This page is general information, not legal, tax, or financial advice, and figures are current as of September 2026 and subject to change. Every home and situation is different — confirm specifics with a qualified real estate lawyer, accountant, or the relevant authority (BC Government, CRA) before acting. Sebastian Czarkowski is a licensed REALTOR® (BCFSA), not a lawyer or tax advisor.